With the gradual saturation of the first-tier urban home market, many home furnishing enterprises have begun to extend to second- and third-tier cities. Not only are the major supermarkets blooming all over the country, but various furniture and building materials brands and home improvement companies are also trying to develop in second- and third-tier cities. All have been laid out.

Compared with the home improvement of furniture and building materials, the furniture stores are more flexible and more convenient to operate. At the same time, these enterprises are more sensitive to the market. At present, many enterprises are also adjusting their direction, from heavy quantity to heavy quality. .

External expansion is not diminished

On November 27th, Red Star Macalline (Laiyang) International Home Life Plaza opened. It is reported that the Life Plaza is jointly built by Shandong Shenglong Real Estate Group Co., Ltd. and Shanghai Hongxing Meikailong Enterprise Management Co., Ltd. with a construction area of ​​110,000 square meters. High-end building materials, furniture, home appliances, casual catering and other services.

It is understood that in 2012, Red Star Macalline opened new stores in Tianjin, Hebei Cangzhou, Guangdong Zhongshan, Inner Mongolia Bayannaoer, Liaoning Shenyang, Shaanxi Xi'an, Jilin Changchun and other places. Actually, there are 16 new stores in Dalian, Liaoning, Shenyang, Anhui Lu'an, Shandong Laiyang, Yunnan Kunming, Hebei Tangshan, Shijiazhuang, and Hunan Changsha.

The second and third tier cities have gradually become the focus of competition for brand enterprises. Meng Xiangmin, the general manager of the North Fourth Ring Store, believes that the second and third tier cities are the main places in the next urbanization process in China, so the group is now mainly developing second and third tier cities. “Those places have a lot to do and the consumption potential is very large.” Wang Qingqiang, marketing director of Beijing Shengxiang Wood Co., Ltd. also said that any city has rich and no money, and consumers in second- and third-tier cities also have considerable purchasing power.

Shop opening speed has slowed down

In addition to the major well-known stores, all the home improvement companies, furniture and building materials companies, with the development of the store to the second and third tier cities, some even earlier, and this year's speed has slowed down.

According to the reporter's incomplete statistics, Dongyi Risheng added 10 new stores in 2012, which was the same as last year. Industry Peak opened 6 branches in second- and third-tier cities last year. No branch was opened this year, only 6 more. The franchise store; the current decoration has been keeping the speed of opening a store for one or two years. This year, only one direct-selling Hefei store was opened; Qumei Furniture's increase in the storefront in this year also slowed down.

As furniture and building materials companies are more flexible than stores, the store is more flexible and more convenient to operate, and has a very obvious advantage in terms of quantity. However, for the operation of the opening of the store, many companies are constantly adjusting during the expansion process. For example, Boloni has recovered the home improvement business in the field since last year. Cai Ming, chairman of Boloni Furniture, said that Bologna currently only sells core products in second- and third-tier cities. Home improvement service is not available. At the same time, due to the influence of the property market, and some enterprises have not been able to adapt to local conditions after the small cities, many companies have made difficult choices such as withdrawing shops and closing stores in the market competition.

From heavy to heavy

Shi Jiechu, executive vice president of Yuanzhou Decoration, said that Shi Weichu, general manager of Siweide Investment Consulting Co., Ltd., started a new business in Wuhan this year, and opened the Rubik's Cube home in Shijiazhuang and Zhengzhou. The furniture and building materials industry is also undergoing adjustments. Wen Shiquan, chairman of Yifeng Furniture, said that this year, some stores were opened in the field, and some stores were closed. Overall, the number of stores has increased. "Most of the enterprises in the industry this year. Live less, die more, slow down than in previous years."

For home furnishing enterprises, the development benefits of small cities need to be cultivated with patience. Shen Yaojun, president of Jimei Home Group, bluntly said: "We also open stores in Xiamen. Second- and third-tier cities are not as good as we thought, mainly because the input and output ratio is not high. The turnover is only one-fifth and one-sixth of the first-tier cities. Hardly make money."

Yin Yuxin, deputy general manager of Oriental Home Furniture City, said that according to the layout of big cities, the layout of third- and fourth-tier cities is definitely a gap. "The layout of the third- and fourth-tier cities should be calm and suffocating, because at that time, we needed a long-term appeal to guide consumption. We could not use the model of big city development in small cities. The GDP of each city is still different. Our vision and pace should adapt to the demands of small cities, develop and deploy specialty stores or stores. Depending on local conditions, the long-term development of small cities should be slow and slow."

â–  Market analysis

Choose a franchisee to be more cautious

"The situation in the past two years has not been very good, and the expansion of our nephews has indeed been affected." For such a situation, home improvement companies and big brands appear to be more calm. Pan Liang, director of the Real Estate E-Commerce Department, said: “There is a bad market share, and the progress of the opening of the store is also reflected in the overall development strategy of the group.”

In the interview, the reporter found that most of the home improvement companies said that the form of the opening of the store was not affected by the market. According to the staff of Boloni: "The brand image of Boloni in the field is not uniform, and the consumption level of small cities is the main reason for the exit of Boloni's home improvement business in some third- and fourth-tier cities." Pan Liang also said that Shichuang Decoration opened in the country this year. There are five directly operated stores, and plans to open another 10 next year, mainly covering provincial capital cities. “Where there is a market, we will go there and don’t feel the impact of the market cold.”

The furniture companies are obviously not so optimistic. According to Wan Ganfu, deputy general manager of Beijing Jinxiu Investment Co., Ltd., which is the agent of Red Apple, Huari and other furniture brands, the company’s agency brand accounted for 10%-20% of the total number of stores this year. Wang Hongmei, the sales director of the top 100 foreign company, said that the top 100 new agents this year were the same as last year, but they are obviously more cautious in their choice. "In the past, we may have sufficient funds. We are more cautious this year. First, we must examine the consumption power of the local market. Secondly, agents must agree with the concepts of the top 100 brands and management, and they will not be able to act as agents."

He Fuwei, director of the marketing department of Zhibang Kitchen Cabinet, also said: "Next year, it will definitely not pay attention to the number of franchises like this year. More is to promote the experience of our direct sales company to franchisees, so that franchisees can make sales. ”

Targeting second and third tier cities

The second and third line, the third and fourth line, this became a vocabulary frequently mentioned by the reporters in the interview. The saturated market in the north, Guangzhou, Shenzhen and the provincial capitals has made it possible for home furnishing companies to focus on prefecture-level cities and even county-level cities. In some of the more mature enterprise plans, the planning of the third- and fourth-tier cities is the next step after the large-scale paving in the previous two years.

For home improvement companies, the growth of these markets has surprised them. According to Shi Yichu, “Yuanzhou’s prefecture-level and county-level cities in Jiangsu, Zhejiang and Anhui have quite good business, and the store opening speed is fast. It is also on the right track. For example, in the county-level city of Zhangjiagang, our first year Formally invested in April, reaching a turnover of 20 million yuan by the end of the year, reaching more than 30 million yuan in the second year, and the average amount of each order is more than 150,000-200,000 yuan."

According to Wang Jianguo, general manager of the Federal Home Beijing Company, “the sales performance of the first-tier cities in the United States has declined compared with last year. The second-tier cities are flat and continue to grow in third-tier cities. In Kunming, there are dealers who open stores easily. I know that there are no more than 10 million stores now." Liu Hong, vice president of Gujia Home, also said: "This year, Gu Jia has grown particularly rapidly in these areas of Shandong and Henan. For example, the Shandong branch was also rated as the national store champion in the middle of the year. "Wen Shiquan analyzed: "The Italian style is also very good in Shandong and Henan, which is related to the stability of local housing prices."

Focus on existing cities

In the past two years, home improvement companies and stores have made the decision to steadily develop their local businesses under the existing market conditions. According to Qi Shifeng, deputy director of the Industry's Peak Decoration Operations Management Center, “The six direct-operated branches opened by the industry's peak this year are in close contact with the original direct-operated branch companies in the vicinity, providing logistics for newly opened companies. Human resources and other cost support. In fact, the consumer groups in the vicinity of the original branch began to consult with them. When we saw the potential market, we decided to open the branch.” Zhang Zhi, chairman of Yezhifeng, also said in an interview: "We deliberately slowed down the speed of opening a store, and now we are pushing the dominant cities to the end and the advantages continue to widen.

Lu Jiyi also said: "Our main reason is not to expand in the second and third lines, more is the infiltration work. In the city that has already opened the store, open a second store, the third store."

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