The pace of expansion is too fast, the number of furniture stores far exceeds the market consumption capacity.

Due to the blind expansion and the intensified competition in the industry, the total area of ​​domestic furniture stores has exceeded 40 million square meters, and 50% of the store area is surplus. Major building materials and furniture stores across the country have experienced problems such as a decline in occupancy rates, difficulties in attracting investment, and difficulties in rents.

In Shijiazhuang City, every citizen has a square meter of furniture stores, and the number of stores has greatly exceeded the market consumption capacity. At the Xianghe Industry Model Symposium held recently, experts believe that the rapid expansion of furniture stores has led to a situation of oversupply. Many furniture gates are ruined, business is deserted, and some furniture market operations are unsustainable and forced to transform or close.

Furniture store area is over 50%

“The current furniture market in Hebei Province can be said to be a serious surplus. The total number of furniture stores in Hebei Province has reached nearly 1,000, of which there are more than 200 stores with more than 10,000 square meters. The furniture market area above the county level is about 10 million square meters. For example, in the urban area of ​​Shijiazhuang, Shijiazhuang has a population of 2 million. The furniture store in the urban area has exceeded 1 million square meters. There are also 1 million square meters of furniture stores in the surrounding area. On average, each citizen has 1 square. The furniture store of Mi.” Li Fengqi, chairman of the Hebei Furniture Association, said in an interview with the China Business Daily that the rapid expansion of the furniture store has led to a situation of oversupply. Many furniture gates can be sold out, some businesses are deserted, and some furniture markets are operating. Unsustainable, forced to transform or close.

Recently, the reporter of China Business Daily participated in the Xianghe Industry Model Seminar. The reporter learned that there are three major furniture distribution centers in Hebei Province: the total sales area of ​​Xianghe Furniture City, which has the title of Northern Furniture Trade Capital, has reached 2.6 million square meters. Annual sales of 24.5 billion yuan. Shengfang, the production and sales base of metal glass furniture in Hebei, has a market share of nearly 70% among similar products in the country. The Zhengding furniture market currently has a million square meters, and annual sales have exceeded 5 billion yuan. The furniture market in Hebei Province has experienced a serious excess. However, the pace of expansion has not slowed down. “Xianghe Furniture City will have to expand another 3.5 million square meters to form the largest furniture distribution center in northern China that surrounds Beijing and Tianjin and radiates North China, Northwest China and Northeast China.” Li Yuge, director of Xianghe Furniture City Management Committee, told China Business Daily.

“The problem of surplus furniture stores also exists in other parts of the country.” At the Xianghe Industry Model Seminar, Zhu Changling, chairman of the China Furniture Association, introduced that according to the statistics of the China Furniture Association, the annual sales of 10,000 square meters are 100 million yuan. Calculated, last year, the furniture and building materials industry achieved annual sales of about 200 billion yuan, which means that 20 million square meters of store area can meet market demand, and the total area of ​​domestic home stores has exceeded 40 million square meters, if the future The trend of the industry does not change, and 50% of the store area is surplus.

Industry experts believe that the excessive expansion of the store, the direct result is the excess of the store. In the context of the continuous expansion of hypermarkets, at present, the volume of furniture stores in China has greatly exceeded the market consumption capacity, and the interests of enterprises and distributors are impaired, which is not conducive to the development of the industry.

Since the beginning of this year, news of the closure of home stores has spread throughout the country. In Beijing alone, 12 home building materials stores have been closed, and another five are preparing to be withdrawn or relocated. The current status of the home furnishing industry is not optimistic.

Store violations are common

The oversupply of the store has caused tensions in the supply of zero supply. At the Xianghe Industry Model Seminar, Director Liu Weidong of the Hebei Provincial Administration for Industry and Commerce specifically mentioned the issue of fair trade between retailers and suppliers. Liu Weidong said that in a routine inspection, some retailers in Hebei Province had a fee for collecting the reserve fee. According to the relevant regulations, the retailer's new store opening fee, inquiry fee, barcode fee, and store entrance fee are all illegal charges.

It is understood that at present, the operation mode of Xianghe Furniture City is mostly based on leasing, and self-employment only accounts for about 9%. Due to the sluggish industry, some furniture stores rely on their own advantages. When signing cooperation agreements with enterprises, the cost of decoration, publicity, operation and management is often transferred to the merchants in the store in the form of high rents, so that the merchants can't make ends meet. Management is unsustainable. Liu Weidong introduced that the inspection also found that retailers had the behavior of collecting promotional service fees. "Retailer charges are more common. These fees are not open, opaque, and unreasonable. They violate the principle of fair competition, which harms the interests of enterprises and the interests of consumers."

In addition, the furniture store rents are too high, but also let the dealers complain. In Beijing, the annual rent per square meter of furniture stores is as high as six or seven thousand yuan, and the annual rent of 100 square meters is more than 700,000 yuan. Due to the high rents, dealers in various stores across the country even collectively protested that rents were too high and refused to pay rent.

Liu Weidong said that retailers and suppliers should follow the rules of retailers and suppliers for fair trade management, prohibiting retailers from charging fees. In the future, on the one hand, we must urge retailers and suppliers to sign a fair cooperation agreement, improve the service fee income and expenditure accounts; on the other hand, we must strengthen inspections and find problems to be investigated and regulated according to law. At the same time, furniture companies are encouraged to report violations.