The carpet market may recover in the second half of the year
Publish Time:
2017-11-16 16:22
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In the first half of 2012, many large domestic home furnishing malls, such as Red Star Macalline, Yuexing, and Juran Home, experienced a significant decrease in customer traffic. At the same time, real estate control policies remained unchanged, limiting the volume of the housing market, and consumers adopted a wait-and-see attitude, with purchasing enthusiasm dropping to freezing point.
According to feedback from the furniture industry, sales performance in the first half of the year generally declined, with some companies experiencing a year-on-year decrease of more than 50%. The situation in the soft furnishings industry is even more severe. An entrepreneur from a sofa company stated: "Since the factory opened, it has never been as difficult as this year; getting a single order this year feels like celebrating the New Year." In Shunde, a major furniture center, many companies are facing this situation.
The furniture market is a "barometer" for the carpet industry; when the furniture market is sluggish, the carpet market is equally weak.
Carpet Industry Faces Cold Market
Sun Zhijiao, marketing director of Federal·Boda Carpet, told the author that, judging from the first half of the year, the sales performance of many carpet companies was flat compared to the same period last year, with some experiencing a decline. Although Federal·Boda Carpet's performance increased year-on-year, the situation for the carpet industry this year is indeed severe. This year, there has been an increase in carpet companies seeking marketing cooperation with Federal·Boda, including some large brands, indicating that the carpet market is not optimistic.
Yang, manager of a carpet distributor at Guangdong Lecong International Furniture City, also stated: "Sales have dropped significantly this year. In the first six months, four months' revenue was not enough to cover store rent, employee salaries, and other costs, resulting in serious losses. We are considering whether to continue."
Faced with difficulties, many carpet companies have had to sell to protect their brands and survival. They stated that this approach is primarily to maintain trust with existing customers and to maintain hope for the future market, enduring temporary losses to achieve long-term development.
How should the carpet industry break through the predicament during this economic downturn and find new development opportunities? This is a question that carpet companies urgently need to consider.
Rigid Demand Leads to Market Recovery
Currently, the economic environment is sluggish, but market demand still exists. With the advancement of urbanization, the influx of rural residents into cities has increased purchasing power in the real estate sector. It is understood that real estate control policies have had a certain inhibitory effect on housing prices in Tier 1 and Tier 2 economically developed cities. However, the impact on real estate in county-level cities is not significant; housing prices have not only not fallen but have even risen slightly. With the development of Tier 3 and Tier 4 cities, residents have a certain level of consumption capacity, so the rigid demand for housing in these cities will inevitably drive the vigorous development of the pan-home furnishing industry.
Sun Zhijiao believes that rigid demand will inevitably lead to market recovery, and the second half of the year will be a turning point. In view of the consumption characteristics of Tier 3 and Tier 4 cities, cost-effective carpet products are more popular. By combining local climate and geographical conditions, producing targeted and characteristic products is believed to be a new direction for the development of the carpet industry.
Consumer Mindset Market
For a long time, in the minds of domestic consumers, soft furnishing products have been considered optional, auxiliary items. Carpets, in the eyes of many consumers, are considered luxury goods, and many consumers do not include carpets in their home decoration purchase lists. However, with the post-80s generation becoming the main consumer group, "emphasizing soft furnishings and downplaying hard furnishings" has become a new trend in home decoration.
With the improvement of people's quality of life and taste, consumers are increasingly pursuing a sense of home, warmth, and fashion. Carpets symbolize taste and culture, aligning with consumers' psychological needs. In this era of personalization, consumers pay more attention to the selection of soft furnishing products. Xiao Yao, a home furnishing designer, told the author: "A client once visited several malls to find a satisfactory carpet."
The Second Half of the Year is the Peak Consumption Season
The pan-home furnishing industry traditionally has distinct peak and off-peak seasons, generally with the off-season in the first half of the year and the peak season in the second half. September and October are the peak consumption months of each year, known as the "golden September and silver October."
During the off-season, companies mainly focus on product research and development and strengthening various systems. When the peak season arrives, they concentrate their efforts on marketing, promoting new products, and striving for sales performance. Therefore, the second half of each year is the key period for company development.
There is another saying: For consumers, the first half of the year is for earning money, and the second half is for spending. Years of consumption habits have led most people to choose to buy houses, get married, and shop in the second half of the year. These habits have also contributed to the strong sales in the second half of the year.
In the second half of the year, the carpet market is expected to recover, and carpet companies should seize this market demand.
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