Why is it getting harder and harder to do business in the decoration industry now?

It is inevitable that the decoration industry is becoming more and more difficult to do, but no matter how difficult it is to do the industry, there are still a large number of outstanding people who make money, they have done innovative reforms, eliminated a number of enterprises that do not want to forge ahead, and the enterprises that naturally survive are easy to do. But today, Liu Zhi expressed his personal views on the decoration industry, why it is becoming more and more difficult to do business now, and hopes to help everyone understand and break through in this regard.

Clause. 1. The era of fighting alone has slowly passed. In the past, two or three people in the decoration industry could form a decoration team, but now this kind of decoration personnel without formal organization have no business, because their after-sales service is likely to be not guaranteed, and they can change regions at any time, and it is difficult to find them.

Clause. 2. Hardcover room.

of shocks. The state and developers vigorously promote hardcover houses, which will cause less and less basic decoration, and naturally form a decoration industry, which is becoming more and more sluggish, which will affect various industries related to decoration.

Clause. Third, the decoration of real estate belongs to the shrinking link. Now our country is aging.

It is getting worse, and the birth rate of newborns.

Decreasing year by year, this will lead to the overall population is getting smaller and smaller, and there will be fewer and fewer people who need to buy a house, and slowly there will be two and one, and naturally there will be more and more houses, and there will be no problem of buying a house and decorating, which will also affect the decoration industry.

Clause. Fourth, those who have no money cannot afford to buy a house, and those who have money do not need to buy a house. Some low-income families can only rent a house, while those who have money already have a house and don't need to renovate it, so the probability of house renovation will only get lower and lower.

Clause. Fifth, many people who buy second-hand houses are not fully renovated, but only make partial changes. This kind of work will also affect the renovation industry less and less.

Personal opinion. Regarding the decoration industry is becoming more and more difficult, Liu Zhi analyzed the above five reasons, in fact, there is another reason, that is, the period of empty gloves and white wolves in the decoration industry has passed. I used to open a renovation company.

The samples in the company's exhibition hall are provided by the supplier for free, and the goods installed in the customer's home are monthly, and the actual decoration company only needs to have a site and a few designers, but some leather packaging repair companies on the market often owe the supplier the payment is not settled, and there is a phenomenon of running away, which makes some suppliers miserable, and slowly makes some building materials suppliers need cash spot when cooperating with the decoration company does not owe money, which leads to the higher and higher cost of opening a decoration company, and some leather bag companies are eliminated.

or lack of strength of decoration companies, which makes those who do not have strength or bag companies feel that the decoration industry is becoming more and more difficult.

There are several reasons why the decoration industry is not good:

First: irresponsible renovation companies.

Second: a decoration company that does not speak of credibility.

Third: decoration, furniture, and electrical appliances are consumables that last a long time.

Fourth: the upfront investment is too large and the scope is too small.

Fifth: the propaganda is not in place, it is expensive, and it is not close to the people.

Sixth: do not pay attention to market expansion and layout.

Seventh: the market determines the winner or loser, and this is the case with half of the country.

Eighth: The pattern and layout determine the road, planting a tree in a pot can only grow to one meter, and it can grow to ten meters in the bell field, which is the pattern and layout.

Because there are more hardcover houses, developers are selling hardcover houses, so the owner's house does not need to be renovated.

Because nowadays many guests like to decorate their new houses by themselves. I don't like to let others interfere, so it makes it difficult to do in the decoration industry.

The most important thing may be that the quality of the decoration workers is uneven, and the reputation of the decoration company is smashed, so the quality of strict decoration workers can be invincible.

Because many people no longer have housing problems, and there are fewer people buying new houses, many people don't need to renovate.

Behind the scale must be standardization, many owners decorate the house, not to hope that the house is more fancy, but simple and generous, economical and practical. There are also diatom mud on the wall, floor tiles, cabinets, wardrobes, doors and windows, etc., as long as they are a little famous, they have their own designers, providing customers with door-to-door measurement drawings, installation and other services, the output value of the decoration and decoration of the new hardcover finished house reached 282.5 billion yuan, a year-on-year increase, which has been close to 15% of the total output value, and has become an important driving force for the growth of the whole industry.

After a long time, a waste of time, the style is old-fashioned, and the market does not renovate the house more in the renovation of the old house and the renovation of the second-hand house. On the contrary, the living standards of people in small cities will improve, and the requirements for the living environment will also increase, and some self-built houses also need to be designed and constructed by decoration companies, and the volume will not be small. Acceptance, change is needed.

Therefore, at this time, under the needs of the three parties (consumers, material suppliers, and decoration companies), it has developed into a second-generation decoration company model.

Home decoration, the simpler the more durable, do a good job of design (design office, personal designer, design studio), do a good job of decoration (pure home decoration construction team), sell building materials to do a good building materials service (brand building materials ** business, manufacturers). There are only a very small number of second-hand housing renovation, grabbing part of the tooling business to barely survive, and some of the developers have a relationship, part of the full decoration and fine decoration business, but the profit is pitiful, and the project payment is not easy to settle.

4- Running real estate. The second is the difficulty of manpower. The entire decoration industry is recruiting, recruiting telemarketing, and designers.

Again, it's hard to operate. In the early stage, they are burning money and slowly making profits. In the future, the home improvement industry must be refined and meticulously developed.

And set up a large exhibition area, except for soft decoration, everything is done. With the decoration company as the entry point, the decoration company is self-operated or cooperates with the best businessmen, and selling materials will become another major economy for the decoration company. Therefore, we need to continue to innovate and improve our capabilities.

But I think that now that the standard of living is improving, people are more willing to spend money on this kind of thing, so the prospects of the decoration industry are still very good.

To provide personalized service and satisfy customers with differentiated design, it is necessary to be creative and not the same.

The way out of the future home improvement industry must be to design a personalized home decoration and integrate the owner's ideas. We can't all be unified, we have to work hard to highlight the details.

Now the home improvement industry is becoming more and more difficult to do, the future of the home improvement industry has two directions, one is scale, the other is refinement, of which scale is to have a complete set of service system can serve customers well, as well as their own market; Refinement is high-end design, high-end design is a better route for companies or designers, in fact, as long as you enter this circle, high-end design is very, very strong.

In 2020, the market size of the home improvement industry will decline for the first time

According to the data of China Decoration Industry Association, from 2015 to 2019, the market size of China's home decoration industry continued to grow, with a compound annual growth rate CAGR, and the market size of China's home decoration industry reached one trillion yuan in 2019.

Affected by the epidemic in 2020, the market size of China's home decoration industry declined for the first time, and the market size in 2020 was one trillion yuan, a year-on-year decline. It is expected that with the improvement of residents' enthusiasm for consumption, the home improvement industry market will usher in a compensatory ** in 2021.

The growth trend of active Internet home improvement users is obvious

From 2016 to 2020, the annual active user scale of China's Internet home improvement increased steadily, and the annual active user scale of Internet home improvement reached 31.56 million in 2020, a year-on-year increase.

The number of Internet home improvement companies involved has increased

In recent years, the proportion of home improvement enterprises participating in digital transformation in China has risen steadily, from 2017 to the first quarter of 2021, an increase of one percentage point, and the proportion of digital transformation home improvement enterprises and Internet home improvement platforms to establish cooperative relations has also risen from 2018 to, in the future, there will be more enterprises in the field of Internet home improvement.

In 2025, the size of the Internet home improvement market is expected to reach 888 billion yuan

In recent years, the scale of the Internet home improvement market has generally shown an upward trend, and the size of the Internet home improvement market in 2019 is about 100 million yuan. Affected by the epidemic in 2020, the progress of offline construction has been affected to a certain extent, but the consumption of the home improvement market has a strong rigid demand attribute, and the epidemic has accelerated the cultivation of online consumption habits of home improvement users, and it is expected that the Internet home improvement market will reach 100 million yuan in 2020, and in the long run, the Internet home improvement market is expected to reach 100 million yuan in 2025.

It is because the decoration plan of traditional decoration companies is not particularly good, and it cannot meet the ideas of young people now, so it is becoming more and more difficult to do.

Because today's young people are more fond of pursuing Internet celebrities and prefer freshness, the customers they face are different, and it is becoming more and more difficult to do.

The reason why it is becoming more and more difficult for traditional decoration companies is that their technology has not been developed by modern technology, that is to say, they still use tradition, so for them they are behind the times.

1. I am a designer, and I have a deep understanding.

2. Looking at the overall environment, the performance of the real estate industry has continued to decline, so that the surrounding industries and decoration have declined.

In the micro decoration industry, the supply of designers exceeds demand, and the number of employees exceeds the demand for personnel.

In terms of market competition, the market competition is increasing day by day, going down, and customer demand is going up.

3. The situation is very awkward, and I can only adapt to the present.

4. Why is it not easy to do, the first three points are obvious, there is no good industry, and the good industry is monopolized.

It's really hard to do, and here's why.

Fierce competition among peers depresses decoration **.

The decoration materials are amazing.

Shop around and beware of renovation pitfalls.

It can only be said that everything is difficult to do, and this is how this world is.

1. Long-term optimism is short-term severe. Due to the state's restrictions on housing purchases and banks' restrictions on loans, the real estate industry has been in a recession. The number of customer purchases has dropped sharply, and the sales of the real estate industry have declined, and the decoration industry, which is closely related, has also been affected, and a large number of decoration companies are in short supply, even if the final payment of the project has not been collected for a long time, resulting in huge pressure on the company's operation.

2. There is still a lot of room for demand in the decoration market. In terms of private housing, there are still people who have a rigid demand for housing, such as marriage housing, pension housing, poverty alleviation housing, and the three-dimensional process of rural housing. Although the house is still far from people's expectations, the rigid demand will inevitably cause a certain amount of turnover, and this part of the decoration volume is also a large share.

The decoration of public buildings will grow rapidly. Urban-rural integration construction, old city transformation, new area development, financial and commercial districts, public amusement places, urban overall planning, urban community planning and regulatory planning put forward higher requirements for the layout, design and decoration tone of public construction. In particular, the annual environmental sanitation inspection and the selection of the top ten sanitary cities in the country have played a positive role in the improvement of public building decoration in a scientific and artistic manner and environmental awareness.

The market share of decoration is still very large, and it is theoretically established to seize the opportunity to create brilliance.

After nearly 30 years of rapid development, China's building decoration industry has gradually matured. From the design standard, the scale of the project to the capital investment, the application of new technologies and new materials have been unprecedentedly developed.

According to the "China Building Decoration Industry Market Research and Investment Analysis Report" released by the Prospective Industry Research Institute, the output value of the building decoration industry increased from one trillion yuan in 2000 to one trillion yuan in 2010, with an average annual compound growth rate of about 6 percentage points higher than the national GDP growth rate in the same period. Among them, the output value of public building decoration (including the decoration of finished houses of the whole real estate) increased from one trillion yuan in 2000 to one trillion yuan in 2010; In the same period, the output value of residential decoration (single-family independent decoration) increased from one trillion yuan to one trillion yuan.

According to the "Twelfth Five-Year Plan" of China's building decoration industry: during the "Twelfth Five-Year Plan" period, the total output value of public building decoration and decoration (including the decoration of the overall real estate finished house) will strive to reach one trillion yuan, with an increase of about 136% and an average annual growth rate; The target of residential decoration and decoration is one trillion yuan, the growth rate is about one, and the average annual growth rate is about one.

The demand of China's building decoration industry is in two parts, on the one hand, the renewal demand and the initial decoration of the newly developed building formed by the reconstruction, expansion, and change of the nature of the use of the building or the initial decoration of the initial decoration of the new building. With the growth of the number of commercial buildings and residences in stock and the maturity of the second-hand housing market, the demand for renovation services for existing buildings as a whole and partially continues to expand. It will gradually become the main provider of demand share in the decoration industry.

On the other hand, consumers' understanding of living quality is deeper and more comprehensive, combined with the improvement of the level of secondary consumption capacity of decoration, which has led to the improvement of decoration standards. Therefore, no matter from the breadth and depth of the development of the industry, it will provide support for the growth rate of demand in the building decoration industry in terms of volume and price, and the growth rate of demand CAGR (compound annual growth rate) is expected to remain in the range of 12 15% in the next three years.

The building decoration industry research group of the Prospective Industry Research Institute said that the strong demand in the industry does not mean that the gross profit margin of the industry is considerable. In the building decoration industry, the regional characteristics are more obvious, entrepreneurial consciousness, the ability to take orders, high-end design and construction human resources and project comprehensive management capabilities and other development factors are restricting most of the small and medium-sized building decoration companies, making it difficult to rapidly expand the national market layout. The low concentration of the building decoration industry has led to the fact that most companies are in a low-end competition pattern, and the average gross profit margin of the industry has been declining year by year.

In general, with the continuous improvement of urbanization in China and the entry of the people's inclusion level, people's demand for the decoration industry is strong, and the decoration industry is very good.