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Observation: How was the furniture market after China National Holiday?
    November 04,2015



 

Almost all the furniture sellers had high hopes for the National holiday, which was called the Golden Week that had just past. Right before the Autumn Festival, many sellers and malls began to launch activities in succession, including discounts, lottery, giving gifts and endorsements with pretty girls, to strike back to the gloomy sales market in the first half year. Hope is a good thing, but what about the truth? Let's have a look at the furniture markets around the country.

 

Shenzhen: Flow rate and turnover increased in general

According to Shenzhen Special Zone Daily, in the Golden Week of this year, over 80% furniture markets broke the silence by welcoming the all-time high flow rate and turnover.

 

Fuyong Hongshuwan international furniture market had a daily flow capacity of over 10,000 in the first three days, with a year-on-year growth of 10%. During the whole week, the turnover increased quite a lot comparing to that of the last year. The marketing director said, the steady growth trend of the furniture retail market since the middle of the year was aroused by the active real estate market of Shenzhen, and it was predicted that it will reach a high point at the end of this year.

 

In Shenzhen European city Heung Kong Furniture, the flow rate and turnover during the Golden Week this year have a year-on-year growth of 30%. According to a person in charge, the high popularity owed to both its location and the marketing activities. For instance, the performance of singers from the Voice of China, gourmet festival, etc.

 

In addition, some furniture markets attracted customers through discounts, giving gifts for a certain price, lottery and giving presents for free that continuously increased the turnover and some even renew their sales records.

 

Guangzhou: See much buy little, flat performance

Reporter of Guangzhou Daily found in a visit that, during the Golden Week, markets in Guangzhou spared no effort to launch sales campaigns. Although the flow rate and turnover were better than usual, they apparently reduced compared to those of last year since many people prefer window shopping to buying.

 

Some customers said, some selling prices of the furniture were 10% higher than last year after seeing the promotional price in the National Day. Hereto, insiders said, the original resource price and labor cost increased at least 15% within this year, and therefore, the furniture selling price increased accordingly.

 

Despite of the average performance, some markets burst with popularity, some brands gaining good sales performance. Relatively speaking, newly-Chinese, little-French, little-American and log furniture with sense of design and high cost performance was extremely popular. However, among the soft furniture, fabric products sold better than leather ones. Besides, well-known highly-spoken brands sold much better than ordinary ones.

 

Zhangzhou in Fujian City: Market division roaring and gloomy

According to the reporter of Strait Herald after visiting Zhangzhou market, customers that consulted for decoration and purchase building materials are more than those of the last year during the Golden Week, and the market was somewhat divided. On the one hand, many famous brands' promotion activities worked effectively while small sellers have the low and unpleasant performance. On the other hand, customers with rigid demand increased and wage-earners occupied a large scale of the decoration group.

 

As for the mainly wage-earning customers, many sellers believed, these customers are sensitive to price. Since sometime people didn't pay for the bill because of a certain of the price margin, the business is not easy to do as their imagination. So, for this group of customers, effective and innovative measures should be taken.

 

Beijing: Crazy discount consumers just don't buy the theory.

During the Golden Week, many sellers launched promotions, for instance, cutting down the price for 15%, giving gifts if buying for RMB5,000, and some online shopping even gave a 50% discount. In spite of the various discounts, customers were not passionate enough on consumption. The sellers said, the turnover kept stable during the period and even that of the special offers was not shooting up.

 

Xi'an: Too many promotion activities, but customers react coolly.

A person in charge of a mall in Xi'an said, two days before the Golden Week, they held a grant show and sales activity which attracted numerous visitors, but a few days later the customers became less.

 

Facing the sales pressure, sellers launched tempting promotions to attract customers through social networks. Besides, other factors such as traveling during the holidays and the other emerge.

 

Future: Remember your original intention

Considering the media throughout the country, "some are laughing while some are crying" in the furniture markets nationwide. Generally speaking, the sales condition is closely related to such three factors as "Favorable climatic condition, favorable geographical position and support of people".

 

Favorable climatic conditions: the downturn of real estate in the recent two years leads to the low rate of partnership, and thus the closely linked furniture industry bears great pressure and challenge. Yet some real estate markets restore their vitality in some regions, bringing consumption to the furniture market.

 

Favorable geographical position: due to the various market conditions in different cities, their sales results are quite different. Based on the living conditions of different regions, the sales performance of both big and small brands is greatly influenced. Moreover, a universal problem exists in nearly all the sales fields, i.e. the sellers in favorable positions have better performance than those in the less favorable positions in the Golden Week.

 

Support of people: the different sales performance of the similar commodities is related to the salesmen, the promotion mode, the store display and many other factors. Whether previous preparations are done, and the discounts are attractive enough; whether the shopping guides are well trained to generate orders; whether the lighting, display and decoration are pleasant enough to be liked by customers. All the above factors shall be well considered before the holiday.

 

According to the industrial conventions, the sales performance during the Golden Week is usually equivalent to 10% to 15% of the gross sales of the whole year. In the past Golden Week in 2015, some may reach the sales goal while some didn't, which cannot be changed anymore. What the sellers in furniture market shall do in the future is to follow the successful methods while overcoming the weakness to prepare for the coming of the next sales boom.

 

*This is Original, please specify the source if reproduced!

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