Guide: B&Q continues to lose money in China, and there are only one store in Nanjing. Why do companies in the same industry accelerate their progress, and the UK's old-fashioned powerhouse will retreat significantly? According to the Voice of the Economy, the current home building materials store can be described as two days of ice and fire, on the one hand, Red Star Macalline, Real Home, IKEA and other home building materials enterprises accelerated expansion, on the other hand, British B&Q silently shut down Nanjing At one store, their store in Nanjing has been reduced from four to one. In the same industry, competitors opened stores to increase speed and increase investment. Why did B&Qâ€™s losses in China for four consecutive years? Mrs. Chen from Beijing has renovated two houses in recent years. When she renovated the first set, she felt that B&Q could still be cost-effective. Many building materials such as paint, hardware, flooring and ceramic tiles were purchased there. When she renovated the second set two years ago, she gave up the familiar B&Q. Mrs. Chen: I went to the price and found that the price of B&Q was 20%-30% more expensive than the outside. I later chose to package the decoration company, they also have their own hypermarket. They have a benefit, even if a door handle is not suitable, you do not need to personally return the exchange, they are responsible, and free. This is something that B&Q can't do. In fact, B&Q also saw this part of the market. They set up a home design center and construction team, hoping to provide customers with one-stop service from materials to construction, but because there is no advantage in design style and quotation, they are not available in the market. More favor. Due to the large losses in 2009, B&Q's parent company, Kingfisher Group, adjusted its China strategy. Group CEO Chescher said in an interview that more than 20 stores will be closed. However, the situation has not improved, and the B&Q China market is still in a state of substantial loss. Cheshire: As the largest home improvement retailer in Europe, B&Q is in trouble in the context of China's housing market downturn, and B&Q China has entered a period of repair. Wang Chen, a chain consultant of Zhaoyi Department Store, believes that the big environment is just an excuse. It is not difficult to see that there are many market opportunities from the rapid development of enterprises in the same industry. However, Baiâ€™an has not caught it. The first reason is that they do not know enough about Chinese consumers. problem. Wang Chen: I will not be able to buy a house for the rest of my life. I want to buy a house in this situation. I definitely want to use a good brand to decorate the house. The high-end products with good quality and good design have almost no B&Q Curie. They are mainly low-medium goods, but these goods of B&Q have no price advantage. Wang Chen revealed that B&Q received a relatively high entry fee, so many good suppliers were lost, and the remaining suppliers had to guarantee their own profits and had to find another way. This has also led to a number of violations in B&Q, such as the original price of the Bianju ceramic tile in Nanjing and the scandals of the Shanghai store's consumer account. Secondly, due to the large proportion of building materials in the B&Q store, some brands in the home are less, the categories are incomplete, and the attraction to consumers is reduced. B&Q is gradually being shackled by competitors. Wang Chen: In addition to building materials, as well as home and other things, such big stores as Red Star Macalline and Real Home, such a hypermarket format is more than a single building materials supermarket in terms of gathering capacity and attracting passengers. At present, the number of stores of B&Q in China has dropped from 63 in the heyday to 39. How does B&Q China plan to revive the market in 2012? After several attempts by the reporter, the final written reply was that high-quality products and services would be the advantage of B&Q. I do not know how long to rely on these two points, how long can B&Q stay in China? As the price of home building materials rose three times in 2011, industry people expect that the prices of wardrobes, custom furniture sheets, hardware and other products are likely to rise in the fourth quarter in 2012. 1. The cost of home decoration has soared. It is reported that the cost price of one square meter of tile has risen to nearly 100 yuan; the length of a long cable has risen to 50 yuan; the floor of a brand has risen from the original 93.5 yuan per square meter. To 126 yuan per square meter; the price of sanitary ware, cabinets and wardrobes has also been raised by 5% to 15%; in addition, the labor costs of bricklayers, woodworkers, oil workers, plumbers and other decoration jobs have risen to varying degrees. The cost of a home renovation is on the rise. For the home improvement industry, raw materials, logistics costs, labor costs, store rents, and high cost squeezes have led to a sharp decline in corporate profit margins. In addition, in 2012, the country's real estate control policy is deep, and the home improvement industry in the downstream of the real estate industry is inevitably exposed to radiation. Costs increase, policy impact, two-way attack, many companies have to "submit", have raised the sales price to ease the pressure. The reporter learned that nearly 60% of the brand home furnishing companies have carried out price increases. 2, the simple price increase is not a good strategy resource integration is the direction of the industry analysis, the price increase is forced by the pressure of cost. The sales scale of some enterprises is decreasing, and the fixed costs such as rents and personnel are still growing. Therefore, the price increase may be their only way to exchange profits for profits, but this is not a long-term development plan. After the price increase, consumers will not accept this and still need to be tested by the follow-up market. In the current new market changes, companies should not directly transfer the pressure of rising raw material prices and labor costs to consumers. Enterprises should comprehensively integrate all aspects of the home improvement industry chain, achieve practical and close cooperation in design, products, services, management, and price systems, and join forces and resources to integrate and share in order to digest external pressure. For the vast number of consumers, the traditional decoration is obviously no longer saving money. Instead of running the market every day and investing in price wars, it is better to hand over to a reputable and powerful decoration company and to be a supervisor in the field. Still a lot easier. 3. Home Stores When visiting the home improvement building materials market in Beijing, many home products were expected to increase in price around the New Year's Day in 2012. A solid wood furniture agent said that from January 1, 2012, our solid wood furniture will increase in price, the new price list is in the discussion stage, but in any case, it must be higher than the current price. . He also told reporters that in fact, many businesses have already raised their prices. Although some preferential activities have been launched, the actual price has indeed risen sharply.
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