Rent disturbances in furniture stores

Does "land rent" rise or fall?

At present, the mainstream building materials stores are all rent-collected and priced by area. No matter what your sales performance is, the rent paid to the landlord cannot be changed-it is really not impossible to sell more and sell less. At the Focus Real Estate Network on January 12, 2012, at the "2012 Beijing Market Status Symposium" hosted by the All China Federation of Industry and Commerce Furniture and Decoration Chamber of Commerce, many manufacturers and distributors stated that they had become "big blood donors" in 2011, and most of them The achievements are "giving tribute" to the landlord. In desperation, the collective "forced palace" hoped that the landlord would reduce the "land rent". (Most merchants are stuck in a loss situation. The furniture tycoon has a reasonable price for rent in the retail store. )

"The circulation industry has played a positive role in the development of the industry in recent years, allowing the home furnishing industry to enter the expressway from the original machined road, but now the tolls of the expressway are too high and the extension speed is too fast, many companies can't control it. "In the view of Wang Caibiao, vice president of Gujia Home Furnishing, rent reduction should be a timely move in the store. (Enterprises that have developed too fast on the "highway" can no longer control it)

Landlords rented go2map , and manufacturers and distributors also turned over last year's sales performance, proving the need for rent reduction. Dealer representative Wang Dawei, chairman of Klass Home Furnishings, introduced at the meeting that in 2011, 30% of Klass stores made money, 30% of stores maintained balance, and more than 30% of stores were in loss. Overall, the performance has slightly increased, but the profits have been increasingly diluted, becoming a veritable "blood donor". (In 211, most of the merchants became large blood donors)

Zhang Zhaohua, who is both a manufacturer and a distributor, had the same experience as Klass Wang Dawei, and became a "big blood donor" in 2011. However, he was not reconciled to the status quo in the market, and after many considerations, he chose to cut those stores with poor performance. "If I don't take the initiative to close the goodfeel , then the first person who died in 2012 is me." Zhang Zhaohua told reporters that some manufacturers and distributors are now "poor". In the context of a market that can't afford rent, the survival strategy of some merchants has become a tragic strategy for entering the WTO. (The rent exceeds 20% of the turnover and the brand men make money)

How much is the "land rent" reduced?

In early 2012, at the "2012 Beijing Market Status Seminar", Hong Kong Kang Sheng (Conaden) Group President Liu Yongkang once announced a set of happiness indexes for furniture dealers: when rent accounts for 10% of sales, dealers can Make big money; when it accounts for 15%, the dealer still has 4% -5% profit margin; when the number accounts for 20%, the enterprise only starts to protect the capital; when it exceeds 20%, the focus on the real estate network , the dealer is afraid that "will fall Tears ".

Looking back at the home furnishing market last year, some brands grew against the trend, and some brands did not have the money to pay the "land rent" and were in a "tears" situation. When talking with reporters, some manufacturers and distributors complained that the rents in the stores were too high, and even accounted for 20% -30% of the turnover. Rent reduction became their wish for the New Year. However, how much is the rent reduction reasonable?

Some people suggested learning the Gome and Suding models, selling good brands pays more rents, and sells less and pays less. However, not everyone agrees with this theory. The chairman of Yifeng Furniture, Wen Shiquan, said that if you sell more, you pay more rent, and if you sell less, you pay goodfeel . Is this still called market competition? In his view, in a market economy environment, the weak can be eliminated before the strong can win.

In the face of manufacturers and distributors who have "raised the pole", venue owners have begun to adopt a soothing policy and implement rent reductions. The big brothers including Wang Linpeng, the president of the actual house, Liu Changhe, the general manager of Chengwaicheng, Zhao Jianguo, the chairman of Jimei, and Yin Bo, the general manager of Lanjinglijia, all publicly stated that they would "lease down" in the future, but the answer is how much They still need to be announced. Even more dramatic is that the landlord also recommends sitting with the tenants to settle accounts and seeing how to adjust to ensure a win-win situation for all parties. In this way, manufacturers and distributors have joined forces to "fight the landlord" and have achieved results.

Is rent reduction really a panacea?

Focusing on the real estate network in front of rent, the store is always a game with manufacturers and dealers. However, is reducing rent really a life-saving straw for manufacturers and distributors?

The answer is not affirmative. Yang Jianwei said on Sohu's Weibo that manufacturers, dealers and stores are in the same interest chain. Excessive rents are not the cause of deserted stores and sparse crowds. Changing the "cold" pattern of the market is not achievable by rent reduction. In his view, the biggest problem in the current market is the lack of segmentation and positioning of the three parties. "From now on, the three parties must give themselves a clear market positioning, which is the fundamental."

Seeking quality without quantity is considered the best strategy to deal with low tide. "At the time of the home market crisis caused by the property market regulation, the number and area of ​​stores must be controlled." Shen Yaojun, vice president of Jimei Home Furnishing Market Group, believes that Tianlong Babu may even consider reducing area. The industry believes that not only stores need to reduce the area, do a variety of operations. Without affecting sales, merchants should also consider reducing the area and improving the efficiency of the square meter.

Compared with the demand for rent reduction, manufacturers open source and cut costs, tapping potential market gaps may be a better way to survive. Industry insiders analyzed that the fate of the manufacturers is still in their own hands. If their own resistance is not strong, it may be difficult to save them by reducing rent in the store. Liu Chen, secretary general of the Beijing Market Association Home Furnishing Branch, once said that we are now in a period of irresistible inflation, and whoever does not pass the test will have to be eliminated.