The home store model has many drawbacks, and the situation is not optimistic.

According to the 2015 National Building Materials Home Furnishings Index (BHI), the BHI in December 2015 was 90.9, a decrease of 5.13 points from the previous month and a decrease of 14.96 points year-on-year. The turnover of building materials and home appliances above designated size was about 88.79 billion, a month-on-month decrease. The accumulated sales for the whole year of 2015 was approximately 108.41 trillion yuan, a year-on-year decrease of 9.98%. This shows that the situation in the home furnishing industry is not optimistic.


Merchant: cold and full, the volume has been bottomed out

On January 28th, local reporters randomly visited the Real Estate Supermarket located at No. 18 Jincheng East Road, New District, Wuxi City. Because it is a working day, the store is rather deserted and there are very few guests. It is understood that the Wuxi Real Home opened on May 10, 2014. It has been in Wuxi for less than two years and is a very young home store. But by the market

The impact of the environment, the decline in customer purchasing power, resulting in a decline in the sales of goods, many small and medium-sized brand dealers are still in the cracks to survive, which makes many businesses headache, in a few visits to the home of several shops in Wuxi shop In the middle, Ms. Zhang Lina, the manager of Huali Huayun, said: “The shop has been in business since the opening of the house. Since the business is not large, the volume of goods in the store has generally declined. This is also related to the geographical location of the mall. Relationship, here is far from the urban area, relatively remote, traffic is not very convenient, so the flow of people is not large." Another shop clerk Mr. Wu revealed to reporters: "The volume of the store where he is located is this Brands are at the bottom of all Wuxi stores, partly because the flow of people in the home is not enough, and the location of the traffic is not convenient. Due to the economic environment, the volume has not been able to go up."

Shopping malls: Stars "endorsements" to raise popularity, business anti-confusion

According to the feedback from the store, Wuxi Store has always been through various activities to enhance the popularity of the store, and even invites the star's big-name to be the "endorsement". It is undeniable that in the early stage of the market economy, some building materials and home shopping malls have rapidly expanded their brand awareness through celebrity endorsements. Their star effect of four or two may make some stores still unfinished. But today, is this "Star Avenue" still lingering? For the merchants that have already entered the market, the celebrity endorsement has obvious effect on the brand promotion, but it has not seen any improvement in the traffic volume and sales volume of the shopping malls that everyone cares about. This also confused many people. Celebrity endorsements are valuable, but they must not be overestimated.



Seeking change is the only way out, you can't rely on single mode

According to industry insiders, according to the current economic trend, the home market in Wuxi in 2016 may be more difficult, and it is more difficult for business to become more difficult. So far, some home hypermarkets have fallen down a number of businesses. When visiting the market, I found that the sub-lease rate of home stores is getting higher and higher. There are more and more small advertisements for renting and subletting on the Internet. There are still some facades in the period of withdrawal. The products are still there, but the door is locked, not Open again. Some merchants have to reluctantly withdraw from the market due to poor management. Among them, new merchants who have entered the home market for a short period of time and have relatively limited customer resources account for the majority. In this industry context, it highlights some of the criticisms of the traditional home store model. The downturn in the industry's economic environment has caused the development of traditional home furnishing enterprises (dealers) to fall into a downturn. This also requires enterprises to actively explore new ways to develop under the contrarian trend. Only in this way can development maximize business opportunities. Although enterprises are "difficult" in transforming e-commerce, they have to seek breakthroughs in new business methods. If they rely solely on the home store model for sales, when the real reform and innovation comes, the unsuitable enterprises may be eliminated by the market.

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