“Ah –?!” is the first reaction of Ms. Chu’s hearing about the collapse of the Oriental Home Building Materials Supermarket – she is decorating a new house in Qunli and is planning to have time to buy some furniture in the Oriental Home. She wondered "how suddenly a big store is gone!"

In fact, the Oriental Homeland has been closed as early as the first half of this year. Prior to this, another large-scale furniture city in Harbin, Xiangfang District, was also closed. The two malls are representative furniture stores in Harbin: the former is the first supermarket-style furniture store in Harbin, and the latter is the first indoor furniture store in Harbin. The opening hours of the two are ranging from ten to twenty years.

Since the end of last year, the furniture market has become increasingly depressed. At the moment, it is the peak season for the affordable housing in Harbin, but the furniture market is still not improving.

Harbin furniture industry has fallen into the lowest valley in a decade

It is inaccessible and has become a unique feature of furniture stores in all commercial formats in Harbin.

Recently, the reporter came to Aijian Real Home Home Building Materials Shopping Center. From the first floor to the fifth floor, in the well-prepared 50,000 square meters of business premises, in addition to more than 100 sales staff, the reporter only saw 9 people - including a delivery courier . Most of the time, the corridors in the mall that run through the facades of the merchants are empty and vast, and you can hear your footsteps every step of the way.

This has become a common situation in many furniture stores in Harbin. Since there is nothing to do, the sales staff of the store sends the working hours by looking at the mobile phone, squatting and embroidering cross stitch. On the fourth floor of a furniture city, a brand store is still open but the wall decoration is also in progress. The reporter said that the decoration will affect the image of the store, and the salesperson laughed and said, "I don't come alone for a long time, and I can't talk about it!"

“Now, the Haji home furnishing industry has entered the most difficult period of ten years,” said Bai Junhe, secretary general of the Harbin Furniture Industry Association. The furniture industry was also affected during the financial crisis in 2008, but it was mainly a one-way capital chain problem. Now the furniture industry is experiencing a two-way weak environment - on the one hand, upstream production and operating costs continue to rise; on the other hand, the downstream sales market is also in low demand.

September and October have always been the sales season for the furniture store “Golden September and Silver 10”. After the "Eleventh" this year, the Harbin Furniture Industry Association selected the representative sales data of eight representative furniture stores in Harbin for a small-scale survey. The result is that people are suffocating: compared with last year's year-on-year decline of more than 50%, some companies' sales only reached one-third of the same period last year. In the store, salespeople are more common than customers.

"Now individual businesses can't sell a piece of furniture in a month!" Bai Junhe expects that the sales of the furniture industry in Harbin may fall by 20% to 30% year-on-year this year. Next year, there will be no obvious warming trend in the furniture market in Harbin.

Is the furniture trade-in or the car-protected housing market?

In the face of the sluggish market situation, major furniture stores have also tried their best – from the beginning of the year to the present, promotions, discounts and other profit-making activities are dazzling.

But this is no longer a panacea. "In the beginning, the activities were still attractive, but now, it is already worse than before," Bai Junhe said.

In order to stabilize the storefront in the mall, some furniture stores have begun to actively reduce the burden on the business.

Due to the increasing operating costs such as manpower, the store rentals in the Harbin Furniture Store have increased every year. But this year, some merchants began to take the initiative to give benefits to contractors. Sun Tao, general manager of Hongqi Furniture City, told the reporter, “Now some store rents have risen by 40 yuan per square meter. However, considering the market environment that the industry is currently facing, we have decided that the rents of the businesses will be charged according to the previous standards and will not increase the price. ".

According to statistics, as a labor-intensive industry, there are currently more than 300 furniture production and sales companies with annual sales of more than 3 million yuan. Among them, there are well-known enterprises including Feiyun security door and small workshops.

In the face of the "bailout" strategy with limited effectiveness, the furniture industry began to look forward to favorable policies.

One is that the furniture is trade-in--the consumer chooses the good product when buying the furniture in the store. The merchant pulls away the old furniture at the same time as the delivery, and subsidizes according to a certain percentage of the new furniture price. The government tenders for recycling companies and processing companies, and the old furniture will be manufactured, transferred or dismantled by professional recycling companies and processing companies. After the implementation of this policy in the first half of Tianjin, it has created hot spots for furniture consumption, and cities such as Beijing have also started implementation.

The second is still from the real estate market. In the case of the furniture industry as a whole "accumulated" in the downturn of real estate, Baijun River saw another business opportunity.

“The purchase of furniture for the residents of affordable housing is a rigid demand. If this market can be developed, it should not be small,” Bai Junhe calculated. Now the government has increased the construction of affordable housing, only from 2011 to 2012. There are 40,000 sets of affordable housing in Harbin. According to the average furniture replacement fee of 10,000 yuan per household, Harbin has a market share of 400 million yuan.

Some cities have begun to implement this policy. Bai Junhe said that the Harbin Furniture Industry Association is communicating with relevant government departments on relevant policies and is expected to make relevant progress in April next year.

At present, the Harbin Furniture Industry Association has planned to open a furniture exhibition area with the theme of affordable housing at the Harbin International Furniture Exhibition held in April next year, and guide the upcoming market and consumers with the possible policies.

After the home appliances, the furniture also took the "downward route"

In addition to the unknowable favorable policies, some furniture production and sales companies have extended their reach to the third- and fourth-tier markets such as counties and townships in the province, and embarked on the “furniture to the countryside” route. For them, this market is tangible and tangible, and perhaps it will usher in a market with great potential.

“Now many small cities in the province have begun to build furniture malls.” Sun Tao believes that the county and township markets will bring new market opportunities in the future.

Not long ago, Sun Tao accompanied the same furniture dealer friend to the Qinggang County, Suihua City to inspect the market - the furniture dealer has a local store, sales performance is good, and now he is planning to build a furniture store in the local.

Some furniture companies that entered the county and township markets in advance have already received substantial returns.

The main products of Yiming Special Furniture Co., Ltd. are leather and cloth sofas. Since last year, enterprises have increased the development of county and township markets. In one year, the sales volume of sofas has increased by about 50%. At present, the sales of county and township markets have accounted for 70% of the total sales volume of enterprises.

"The price of our low-end sofa products is about two or three thousand yuan, but the sofa with a retail price of about 5,000 yuan in the county and township market is a hot-selling mainstream product," said Zhang Xianjun, general manager of Yiming Special Company. The county and township markets in Heilongjiang Province are very different from those in other provinces. There are a large number of farms, forestry bureaus, and large-scale growers in all regions of the province. The income level of many of them has far exceeded the income of the white-collar workers in Harbin, and it is inevitable that the way of life is aligned with the metropolis. As a result, the county and township markets have become a market with great potential.

Based on the hot sales situation, Zhang Xianjun plans to increase the sales of the third and fourth-tier markets in the future and further expand the county and township markets.

The Harbin Furniture Industry Association includes more than 100 furniture manufacturers and more than 90% of the furniture stores in Harbin. Bai Junhe said that many furniture companies have entered the third- and fourth-tier markets. "We have called on everyone to enter the county and township markets."

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