Home improvement industry is in a downturn

With the continued downturn in the property market, the home improvement industry has been plagued. Since November, the home improvement industry has entered a long winter. What makes the home improvement companies more trouble is that the labor costs are soaring. Near the end of the year, the industry stage labor shortage will appear again. Small home improvement companies have to choose to shrink defense.

Business shrinks by 30%

At the intersection of Tanggu Hebei Road and Jintang Highway in Tianjin Binhai New Area, there are several large-scale home stores such as Xinyang Home Plaza and Jinxiu Mall. Compared with the old people and the booming business, the market has been deserted in the past six months. Even on the weekend, customers are less pitiful. "From August onwards, there are fewer and fewer customers. Now it is better to have more than five groups of customers in one day." Jinxiu Mall is also engaged in furniture and decoration business. Before the shop, several salesmen told reporters.

Mr. Qi, the person in charge of Tianjin Feiyida Home, told the reporter that the general “Golden September and Silver 10” is the peak season for home improvement. It is the peak season for furniture sales near the end of the year, but these two peak seasons have not prospered this year. Even if it is fortunate, in the second half of this year, the business has shrunk by at least 30%. “Many merchants do not necessarily receive a single business for one or two months. At present, we have only completed about 60% of the company's target.”

Compressed profits to survive

In the interview, what was unexpected was that some home improvement companies did not accept every single order. The rising cost of labor has far exceeded the profit growth of the decoration itself, so the other big problem facing the home improvement industry is the increase in costs and the decrease in profits. "In addition to the rising prices of raw materials, it is not a small amount of workers' wages. Together with daily expenses, a list is finished. If it is not good, it will lose money." Mr. Cui, manager of Tianjin Yisheng Decoration Co., introduced the current market. The price of bricklayers is about 300 yuan per day, the daily wage of woodworking is between 250-300 yuan, and the brick-laying workers rise from about 20 yuan per square meter at the beginning of the year to nearly 40 yuan. “From the beginning of last year, the wages of workers have skyrocketed and become the bulk of the cost of renovation.” Mr. Sun, the head of a decoration company, said that on the one hand, the market is sluggish, many companies are rushing customers at the price, and the other is A large number of workers' wages, more and more small and medium-sized decorative companies began to lose money, and some of the newly developed companies were returned to the "road guerrillas" state. Mr. Sun said that if labor costs continue to rise so much, next year's Tianjin home improvement market is likely to usher in a "price surge."

It’s better to practice hard work

“The property market is in a downturn, and the furniture industry is bound to be affected.” Faced with the current market situation, many home improvement bosses are pessimistic that there is no better way. “All manufacturers are discounted, which is equivalent to no discount. The market downturn is ultimately bought. There are fewer people in the house, so they can only wait for the market to warm up." A responsible person said helplessly.

"Opportunity is always coming, not waiting." Ms. Wang Ping, general manager of Hongxing Meikailong North China District, believes that although the entire home improvement industry is facing an unprecedented crisis, it is also an opportunity for industry purification. Internal skills are improved, and their own business level and service quality are improved. Only their own "hardware" can be relied upon, and business opportunities will be won in the crisis.

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