[Office Partner Information Center] 80% of the domestic market with more than 4 trillion yuan is a small and medium-sized enterprise. Moreover, most of these companies have low gross profit margins and do not have sufficient cost space to achieve large-scale national expansion. Secondly, due to limited capital strength, it is difficult for the entire industry to undergo large-scale mergers and acquisitions. However, from decentralization to concentration, it is a law of development in an industry. In the near future, whether it is the external market environment or the self-reform of the enterprise, all of them reflect the pace of transformation and upgrading of the home industry. The home furnishing industry is also shifting from the "hundreds of battles" to the "standing and standing". 
The market environment is sluggish: the home industry is in a situation of survival and inferiority
For many years, the home building materials market has always been considered to have the characteristics of high sales volume and high profits. The industry has called this phenomenon “the era of high gross profitâ€. In the past, it was not surprising that the industry's profit reached 50%. Even some merchants' gross profit can reach more than 90%.
However, for the current severe market situation, senior experts and operators in the home industry have unanimously acknowledged that the “high gross profit era†has become history. First of all, the market structure has been changed. The phenomenon of “price war†in the industry is very common. Many merchants have to sell the price down and down again. The profit is reduced, but the cost is rising and then rising. Large to rent, raw material prices, as small as freight, handling fees, all of which are not taking turns, so that the already difficult family people want to cry.
The downturn in the market is in itself a process of survival of the fittest. Those companies that focus on creating brand advantages, constantly optimizing processes and improving services will naturally have broader development prospects, and the market share in the future will increase accordingly. Those manufacturers or operators with unstable quality, imperfect service and improper cost control will have to face a situation in which market share is gradually squeezed and reduced, and even forced to withdraw from the home stage.
Internet impact is serious: product prices are more transparent
The impact of the current Internet platform on physical stores in the home market is quite serious. According to the "Special Consultation Report on the Opportunity Challenges and Coping Strategies of the Internet for China's Home Building Materials Industry" issued by the Forward Industry Research Institute, the impact of the Internet on physical stores is not only to lead to customer diversion, but more importantly, to keep product prices down. Because the operating cost of the Internet sales platform is lower than the physical store, and the physical store wants to compare the price with the online store, it can only choose to sacrifice profits.
But on the other hand, the emergence of the Internet sales platform has played a positive role in the development of the entire industry. The emergence of a large number of Internet sales platforms will make the price of each brand product more transparent, and the quality of the products will be more contrasting. This will be very beneficial to standardize the industry order and create brand advantages. Consumers will also be in the process of purchasing home products. In a more fair environment.
Home consumption upgrade: "smart" and "custom" rise
With the rise of China's middle class and the implementation of the state's supply-side reform policy, China is welcoming a new wave of consumption upgrades. The process of consumers changing from coping with life to operating life and enjoying life is also the process of traditional survivability and material consumption beginning to give way to development and service. This process is reflected in the home industry, which is the popularity of smart home and whole house customization.
In the future of home improvement, consumers are bound to pay more attention to the brand effect of products. Reliable product quality, perfect supporting services, and good social reputation are important guarantees to win consumers' favor.
Increased brand concentration: the role of talents is highlighted
Talent is the maker and implementer of all decision-making in the enterprise. Talent is an important factor affecting the brand effect and the company's income generation. The role of talents in enterprises is not obvious in the whole industry, and is often overlooked. However, when the development of the industry presents a new situation and the concentration of brands is increasing, the importance of talents to the development of enterprises will be infinitely magnified.
Take store-level shopping guides as an example. When the furniture market was in a period of high profits and high sales volume, few merchants were worried about hiring shopping guides. At that time, the dealer's request for shopping guide was very simple - as long as the image is acceptable and the mouth is sloppy. However, the current dealers' requirements for shopping guides are obviously stricter. They not only require a certain cultural foundation, learning ability, but also the ability to grasp customer psychology and integrate into corporate culture. Businesses in the industry have expressed their feelings: "It is not difficult to recruit a shopping guide, but it is too difficult to choose a good shopping guide."
In the training of the talent echelon, in fact, many home furnishing enterprises have already begun, and the excellent home furnishing enterprises in the industry have already started 5 years and 10 years ago. As time goes by, the home industry will definitely have a very rich talent pool in the future.
The industry continues to change, the market competition intensifies, the survival of the fittest, the survival of the fittest, the development of the future home industry, after experiencing a wave of baptism, the brand concentration will be significantly improved, and products without brand advantage are likely to be eliminated by the market. At that time, the home industry will no longer be a hundred miles, but a situation where it is difficult to meet a mountain.
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