At the beginning of the year, the State Council promulgated a new round of real estate market regulation and control policies, the “National Eight Articles” and the real estate tax pilot policy, the central bank raised the loan interest rate again, and the Ministry of Housing and Urban-Rural Development raised the provident fund deposit and loan interest rates. The home furnishing market in 2016 has had a certain impact. Now that the New Deal has been implemented for more than two months, what is the performance of the building materials home improvement market?

Decrease in customer traffic in the home building materials market

"Now the purpose of the national property market policy regulation is to curb the excessive growth. Due to various factors, the urgency of consumers’ expectations is expected to slow down the purchase and decoration of houses. To a certain extent, there is a wait-and-see mood, but consumption also exists, only However, growth and the total market are falling. "Zhang Jun, chairman of Yezhifeng Decoration said. Recently, the reporter saw that in some home improvement building materials stores, many brands of home improvement companies and building materials stores are standing at the entrance of the publicity board, although the form of promotion is different, but its core is almost to strengthen marketing efforts and improve sales performance. In addition, many stores have adopted the method of static braking, did not post promotional content in front of the store, and customers are also very sparse, the mentality of watching the market can be seen.

The reporter learned from many sources that the sales volume of the home building materials industry has shrunk this year. The sales of most businesses have shrunk by more than 10%, and the turnover of individual businesses has fallen by 20% -30%. The sales staff of Red Star Macalline Chaoyang Store of Shengxiang Floor told reporters, "Sales in March declined slightly, the sales volume of commercial houses decreased, less houses were installed, and the location of Chaoyang Store was biased, and the surrounding residential areas were less, although they were far away from the international trade circle. Recently, but the demand for floor decoration in office buildings is small. "The main reason for this phenomenon is the impact of this year's property market regulation policy. The reduction in the property market transaction volume will inevitably have an impact on home building materials.

Rigid demand still exists

"Real estate is the upstream industry of the home furnishing industry. Its changes are closely related to the home improvement industry. The policy regulation of the property market will definitely affect the total market capacity of the home furnishing industry. However, the current government property market regulation is mainly aimed at clearing bubbles and reducing financial risks. Therefore, this policy is good for the long term, and the future of the home improvement market is full of hope. "Jiang Yong, general manager of Ruibowen Decoration, said that the number of customers in the high-end market is decreasing.

Shaoxian Qiang, president of Oriental Parkson, said that the impact of the property market regulation policy on the furniture market is very obvious. The overall sales in the first quarter of this year fell sharply, a drop of 25%. Compared with the same period last year, sales in first-tier cities fell, while sales in second- and third-tier cities were basically flat. Coupled with rising rents in stores, many brands have already withdrawn stores, but there are still some needs.

"The New Deal not only has no negative impact on the home improvement industry, but will promote the development of home improvement brand enterprises. Because of the introduction of the New Deal, it has directly curbed real estate speculation. Real estate prices are expected to decline by the middle of this year. In this way, The common people save money to buy a house and spend more on the decoration, and the quality of the decoration will naturally improve. "Said a person in charge of a home improvement company. A person in charge of the home furnishing store also holds the same view. The New Deal in the property market restricts real estate speculators. By appropriately suppressing housing prices, rigid demand can be further released. Only buyers with rigid needs will renovate the house. When this part of the population increases, the home improvement market will show an upward trend.

Home improvement company prices rise

It is understood that since March 1st, the management fees of decoration companies such as Kuoda, Yefeng, Qingzhou, Jincheng, Shichuang, Shengdian and other decoration companies have been increased to 12% from the previous 8% of the basic construction decoration fee. In addition, the unit prices of bricklayer construction of Shichuang (part of the Qinggong auxiliary materials business), the present and Qingzhou have been raised. In terms of raising management fees, some companies also have differences between new and old customers. If the old customers faithfully sign the order before April 1, they will still enjoy the discount of only 8% management fee.

The increase in management fees and quotations for some types of work are due to rising cost pressures. According to Wang Xiaobing, vice president of Decoration Group, since last year, raw materials, labor and prices have generally risen, and the cost is about 10% -12% higher than before. After the price increase, the home improvement company can be maintained for at least a period of time, otherwise it will only die faster. Li Yujie, secretary general of the National Association of Industry and Commerce's Home Improvement Professional Committee, also believes that home improvement companies have been fighting with the rapidly rising manpower and raw materials for a year, and the pressure cannot be digested. At this time, price adjustments are compelling. Consumers are increasingly demanding home improvement companies, leading to rising management costs. Many people in the industry believe that the increase in management fees is inevitable.

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