The overall decline in the Chinese furniture market has been going on for nearly two years, and so far no signs of improvement have been seen. The "shuffle" sound is also one after another, the distributors who have been forced by the influencers, as well as the manufacturers, and many large supermarkets that used to be quite strong.
What is the living condition of furniture hypermarkets in key cities this year? What ups and downs have you experienced? What dramatic changes have occurred in the evolution of relationships with dealers?
The store actively "put down the body"
Since the beginning of this year, some hypermarkets have begun to actively reduce rents, or introduced preferential policies through measures such as disguised rebates.
In Shenyang, a major town in the northeast, there were 4 stores closed in November 2011. Although there were no big stores closing this year, some obvious changes have taken place. For example, the Shenyang First Store has launched a preferential policy of “10% discount on annual rents†since August; the Shenyang Third Store is free from rent from June to September this year. If the situation in September is not good, it will continue. The preferential policy was introduced; Red Star Macalline Dadong Store had a volume of 200,000 square meters. This year, it was adjusted and cut down by 1/3 of the area. Qumei and other brands have already withdrawn.
According to industry insiders, the reason why the Shenyang Third Store has introduced a preferential policy of exempting four months of rent is mainly due to its lack of commercial atmosphere, inaccurate brand structure and excess marketing means. The adjusted Red Star Macalline Dadong store, whether the investment can be full, many dealers are skeptical and wait-and-see attitude.
Similarly, in Hefei, Kunming, Guangzhou, and Shanghai, some well-known chain stores have also introduced different levels of preferential rent reduction policies.
According to Wan Ping, chairman of Hefei Wanjiamei Co., Ltd., “Hefei Hongxing Meikailong (one store) rent is reduced by 15% in 2013 (ie September this year to September next year); sixth space is rent-free for 4 months; Hongxingmei Kailong (second store) has just opened and is rent-free for 2 months."
Li Junming, general manager of Kunming Port, revealed that “some supermarkets in Kunming are owners who actively reduce rents, most of them are 20% off, and some are 30% off.â€
A senior distributor in Guangzhou reported that Guangzhou Jisheng Weibang (Weizhou Store) has a 40% discount on annual rent.
A dealer in Shanghai who asked not to be named feedback: "At present, Shanghai's hypermarkets are obviously less likely to lower rents. Generally speaking, they are more implicit, and some preferential policies are disguised. For example, engage in activities."
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