The expansion of the supermarket building materials is not weaker than the daily supermarkets. A Case Study, B & Q B & Q shop in advance of Guangzhou has two construction phase of tension, its first store in Guangzhou Huangpu Road will be opened in August of this year, while at Industrial Road, Haizhu District, also will be the year the second store opening, this is B & Q for the first time in the same city within a year to open two stores.
At the same time, predators from Beijing Orient home building materials have been stationed themselves Fangcun, its 50,000 square meters of the first store will be out in December this year, plans to open three supermarkets in Guangzhou; Guangzhou local supermarket of building "good home" this year June would come in addition shop; also the home of Xiangjiang Group, Ford injected material in the expansion of supermarkets in Shenzhen, will open to Guangzhou; OBI, IKEA and other international businessmen are among the secret location.
Half of building materials supermarket unsuccessful
Despite the menacing heroes, seize the site, but in fact as the domestic building materials supermarket of building a new circulation Format, have not fared well. According to a former supermarket building materials in China serving the four sources, has opened in China by large-scale building materials supermarket in half is not successful, two-thirds of non-profit.
The B & Q China President David Wei said, even in relatively developed building materials supermarket format in Shanghai, building materials, building materials supermarkets accounted for 17% market share to 18%, however, individual cities in the country is less than 2% less than in Guangzhou 1%, even though B & Q in the future in Guangzhou, will not exceed 3%. Building materials from Western countries accounted for 90% of the share of supermarkets even worse by a mile.
Inertia of traditional wholesale market stalls
Building materials supermarkets, regardless of foreign and domestic funds, the current development in the country are not very smooth. Industry insiders believe that the reason for this situation are many. First is the inertia of traditional building materials market. Guangzhou, for example, the traditional type of decorative building materials wholesale market stalls many consumers have been accustomed to in order to demonstrate model-based market purchase, while watching the side of the bargain, feeling more affordable. The warehouse-type building materials supermarket shelves are dominated by, an array of goods, people could not find a bright spot, but clearly the price is not negotiable, great for habitual consumers, the advantages of building materials supermarket was not accepted due to a moment has become a disadvantage. In addition, the traditional wholesale market to "stall" system rental, business ownership in companies and agents, so that tenants will receive a larger free space, making cash flow generation and flow faster, simple and smooth the entire channel.
Even building materials have always been very optimistic about the supermarket that Ye Tai Wei, also acknowledged that the traditional wholesale market in the country die at least 5 years even in the medium-sized cities have to 10 years.
Advance estimate D IY decoration ideas
Foreign supermarkets in foreign countries to DIY (Do It Yourself) decoration family as the main consumer group, and this is clearly a move to China to suffer a serious challenge. Cancellation of rough housing in the current domestic second-hand house is not large, exchange volume, the foreign supermarkets little Mo Buzhun consumers temper, D IY concept formation requires five conditions: ownership of private residential; have high disposable income ; second-hand housing market maturity; have longer holidays; labor costs are very high. But after the three conditions in China is not yet available: paid leave too little, mostly second-hand housing transactions does not exceed the one hand, and labor is cheap.
Difficult to effectively control the flow of costs
Domestic and foreign supply system is very different from that building materials also increased the difficulty of getting goods supermarket. It is reported that many manufacturers in China have their own permanent agent to the supermarket to purchase factory direct channels are sluggish, increase the flow of various costs, direct impact on low-cost strategy for the supermarket run. Currently, only 30% of the straight-line supplier support B & Q's national strategy. In addition, the industry sources, building materials, the majority of supermarket procurement managers also get a rebate, an increase of the cost of the supermarket.
Logistics conditions in the country is not perfect, so difficult to control the logistics costs of the supermarket. Various supermarkets now entering the domestic, only Wal-Mart to do their own logistics, the other has not yet made. In addition, most building material supermarket built in the center of the city, and downtown location, high rental fees have increased commodity costs. Building materials supermarkets in foreign countries generally have 36% gross margin, but only 10% more than the domestic rent a portion of profit sharing. The picture shows the rise of building materials supermarket and detonated in the domestic market of traditional building materials business state of the replacement and upgrade sales and service of enthusiasm.