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Fuzhou home decoration market industry leader cut prices and small profits to grab orders

Fuzhou home decoration market industry leader cut prices and small profits to grab orders

September 2, 2014

[China paint information] Fuzhou is an early open coastal City, and the real estate industry is developing rapidly. The commodity houses in Fuzhou market are different from those in the northern market, that is, Fuzhou commodity houses have no partition walls in their suites. In addition, Fuzhou is a famous hometown of overseas Chinese, and the owners invest more in decoration costs, Therefore, Fuzhou is also regarded as the best profitable city by the decoration industry. Nevertheless, due to the lack of norms in the decoration industry market and the low entry threshold, the home decoration industry in Fuzhou has been difficult to form a climate for a long time. Thousands of decoration companies are small and micro enterprises. It was not until the emergence of the leader of the decoration industry in Fuzhou in recent three years that the market developed rapidly towards standardization and security

overtaking at the corner, the industry leader quietly formed the home decoration industry in Fuzhou three years ago. As mentioned above, with the approaching peak of residential decoration, the low profit of major paper types slowed down, and the demand of the home decoration market in Fuzhou fell in 2010. Many decoration companies followed the shrinking scale. At that time, Fuzhou Centennial Yamei decoration was still a small-scale home decoration company, and more than 50 employees were serving the medium and high-end home decoration market, At a time when the market demand was shrinking, Mr. He ye, the head of century old Yamei, did not regard the market as negative, but adjusted the company's positioning to seek a larger market and expanded decisively in the adverse trend. The company established a new "home decoration" under the company, which was positioned to serve the mass home decoration market, expanded the company's office space from hundreds of square meters to tens of thousands of square meters, and immediately expanded its recruitment team to more than 300 people. This move is accused of blind decision-making in Fuzhou decoration industry, and many people think that "home decoration" is "impossible"! However, three years later, one decoration has developed into two direct stores in Fuzhou and Xiamen, with more than 1000 employees, and its market share ranks first in Fuzhou and Xiamen

lower profits, sell more and occupy the market at a small profit

intensive operation has kept the decoration price down.

home decoration, which has been operating for more than 3 years, has the confidence to reduce profits for many times. Thanks to the intensive decoration of home decoration, traditional decoration companies only provide design and construction services, while home decoration not only provides such basic services, but also takes advantage of the sharp decline in the business situation of home stores in recent years to quickly build the main materials and soft decoration projects, As home decoration has occupied the largest market share in Fuzhou home decoration market, manufacturers of building materials and soft decoration have also rushed out of their heads to cooperate with home decoration. Home decoration has a strict low price threshold for cooperative building materials and soft decoration manufacturers. Material suppliers must make a written commitment that the customers who provide home decoration services must be the lowest price in the market, and those who have false preferences must compensate consumers by three times the price difference. Now, one decoration company has its own integrated furniture factory and windows, and all the results are stored in the database curtain processing factory. Many building materials manufacturers quit their original provincial agents to embrace Youjia decoration. Youjia decoration also plans to implement more building materials for exclusive production by designated manufacturers, further reducing the price to the lowest. A series of price reduction measures, compared with a small number of free transactions in the market and the industry rebates that are difficult to escape, the price of home decoration building materials naturally benefits consumers

marketing expert xusunxin pointed out that the formation of the industry leader can not be ignored for the integration of the market. Through the continuous expansion of the scale, the profits can be reduced, so that consumers can really enjoy the money saving decoration, and the consumption security and after-sales service that large enterprises can bring to consumers are what small and micro enterprises can't do. These are long and complex processes, and large-scale enterprises have become the first choice of consumers, This has led to the centralized flow of industry market resources. Just like the complete reshuffle of home appliance retail industry after the emergence of Gome, all kinds of home appliance retail stores all over the street disappeared instantly. After the emergence of decoration giants, the living space of small and micro decoration enterprises has become smaller and smaller. It is also an inevitable trend for a few giants to monopolize the home decoration market

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