Text/Hong Xiaochun
On July 23, China Ceramics Network’s 2020 National Tile Market Survey [Guiyang Station] was officially launched. In the past few days, the investigation team has made a comprehensive and in-depth understanding of Guiyang's building materials market.
According to the latest statistics, the existing housing area to be renovated in Guiyang City exceeds 3 million square meters; while the proportion of fully decorated houses is relatively low. The reporter learned from many local building materials dealers that the proportion of existing real estate in Guiyang City with fine decoration does not exceed 10%; with Country Garden, As large real estate companies such as Evergrande and Vanke entered Guiyang, the proportion of newly built properties with fine decoration increased by nearly 20 percentage points.
In addition, Guiyang's ceramic tile retail market has been affected mainly by the large-scale interception of home decoration channels, and the polarization of high-end and low-end brands; in terms of product prices, there are two extremes of high and low in the same market.
1
Building transaction status
Commercial residential transaction volume in the first half of the year was 2.9 million square meters
The administrative area of Guiyang City is divided into "6 districts, 3 counties and 1 county and city", with a permanent population of 4.802 million, of which the population of Guiyang's central urban area is close to 3.3 million. As a provincial capital city, Guiyang has a small population; yet such a "few-populated" city is the gathering place for "super real estate projects" across the country. Statistics show that there are more than 10 real estate projects in Guiyang with a construction area of more than 2 million square meters, including Huaguoyuan, which is known as the largest real estate in Asia.
Top 10 houses sold in Guiyang in the first half of 2020
According to CRIC data, from January to June 2020, the transaction volume of commercial residential buildings in Guiyang’s main city was approximately 2.9 million square meters, a year-on-year increase of 19%, and the market heat has increased slightly compared with last year.
Shunhui Ceramics Guiyang dealer Wang Wenke
Interviewed by China Ceramics Network
Wherever civil construction is carried out, there is room for the development of building materials. Guiyang has become a fertile ground for ceramic tile sales due to its huge demand for building materials. Wang Wenke, general manager of Guizhou Western Building Materials City Development Co., Ltd. and distributor of Shunhui Ceramics in Guiyang, said that even if no more real estate is built in Guiyang, the area of existing housing to be renovated exceeds 3 million square meters. Therefore, the demand for ceramic tiles in Guiyang has not decreased. Traditional ceramic tile wholesalers can still survive in this market very well, and some can even achieve sales of 20-30 million yuan a year.
2
Market Distribution
More than a dozen large-scale markets are scattered and scattered
China Ceramics Network visited Guiyang Juran Home (Jinyang Store)
Guanshan Lake DistrictJuran Home (Jinyang Store)7 kilometers to the northwest is GuiyangSouthwest International Trade City< span style="color:#999999">, 3 kilometers southeast isRed Star Macalline (Beijing West Road Store)and< span style="color:#2980b9">Xingyijia (Beijing West Road Store);
Nanming DistrictRed Star Macalline (Fuyuan Beauty Store)和Xingyijia (Donghong Store)Adjacent to the newly builtJuran Home (Tai Sheng Store)< span style="color:#999999">About 6 kilometers apart;
Huaxi DistrictWellhouse Home (Niulangguan)< /span>和Xingyijia (Boyuan store)< span style="color:#999999">Adjacent, but driving distance from WilhouseKaihong Home PlazaThe shortest time is 30 minutes, and there is a Western Building Materials City in Huaxi District close to Gui'an New District;
There are also others in Baiyun DistrictSouthwest International Home Decoration Expo City......
There are numerous large and small building materials business districts. Guiyang’s building materials market is characterized by large numbers and low concentration. The investigation team worked non-stop for four days and still only visited 9 of the markets.
China Ceramics Network visited Southwest International Home Decoration Expo City< /span>
It is understood that the reason why Guiyang’s building materials market has formed a relatively dispersed pattern is related to the two “big turbulences” that have occurred in Guiyang’s building materials circle in recent years. One is the demolition of the stadium building materials circle, and the other is the demolition of Red Star Macalline (Fuyuan). (US) store location relocated. The instability of the building materials market can easily lead to the relocation of brand stores, so market positioning and brand composition are relatively complicated.
Zou Yichen, a Guiyang dealer of Jinsi Yuma tiles
Interviewed by China Ceramics Network
Zou Yichen, a Guiyang dealer of Jinsi Yuma tiles, said that entering a store to decorate a showroom is nothing more than taking a fancy to the overall market environment. The market has high brand concentration, which has certain advantages in terms of scale effect; however, having too many brands and not having the same grade is also a drawback.
3
Current status of home improvement channels
The maturity of the decoration industry has forced material manufacturers to transform
Since 2018, affected by the domestic economic environment, the decoration industry has experienced a cliff-like decline. Decoration companies in major cities across the country have closed down and run away due to broken capital chains overnight, and Guiyang is not immune. Since 2020, the home decoration industry has experienced more severe tests, but there are still some decoration companies that have survived the turbulence of Guiyang's decoration industry. The investigation team understood and analyzed the current situation of these decoration companies.
Guiyang local old decoration companyXi Baibai Decoration, its business scope covers the entire territory of Guizhou. With the "fixed price" model based on consumers, it has the largest share of Guiyang's hard-demand home decoration market, and is a locally recognized leading enterprise in the decoration industry;
There are also old local decoration companies in GuiyangHaida Decoration , because it has its own business model, old customers and referrals from old customers make more orders, and it still steadily occupies the Guiyang decoration market;
Guiyang's currently more active non-local decoration companyLifeng Decoration, established in Chengdu in 2014, mainly provides home decoration design and construction. Most of its customers are 90-150 square meters. Although the volume is small, its performance is still on the rise;< /span>
As a large-scale nationwide chain decoration enterprise, Xingyi Decoration's Guiyang branch has also performed well because it has insisted on attacking the mid-to-high-end market in Guiyang's decoration industry in recent years, avoiding The impact of the "wave of bankruptcies" in the decoration industry.
Wang Jun, General Manager of Guiyang Branch of Zhongbo Decoration Group
Accepted an interview with China Ceramics Network
Zhongbo Decoration, the leading decoration company in Zhejiang Province, entered the Guiyang market in 2018 and has developed rapidly in the past two years. Wang Jun, general manager of Guiyang Branch of Zhongbo Decoration Group, said he did not wantIf we continue to use the previous model of setting up material zones to cooperate with building materials manufacturers, such cooperation will not be competitive for decoration companies. In the future, the ability to integrate resources will become the greatest competitiveness. Only by cutting off the tedious profit chain and giving real value and benefits to the owners can we achieve healthy and long-term development.
The maturity of the home decoration industry has also forced ceramic tile dealers to reconstruct their sales channels and improve their channel development and service capabilities. Many dealers expressed their opinions on the home decoration channel.
Grace Tile Guiyang dealer Chen Zhiming
Interviewed by China Ceramics Network
A certain brand dealer A: Guiyang’s decoration industry is more mature than Bijie, Zunyi and other places, so the entire home decoration channel is also more mature. Strong. In other counties in Guizhou, customers with a single value of about 10,000 yuan can still be grabbed, while in Guiyang, orders of less than 50,000 yuan are almost monopolized by a few low-price decoration companies.
A certain brand dealer B: I once tried to go through the channel of a home improvement company, but after two or three months, I lost hundreds of thousands. Stop immediately, considering that it is better to be a wholesale channel. Although the profit of the home decoration channel is 10 points higher than that of wholesale, compared with a simple and crude transaction such as wholesale, the home decoration channel has the disadvantages of high service costs and risks in payment collection.
A certain brand dealer C: When you go through the home decoration channel, you will inevitably encounter some companies that run away because they owe money for materials, but you can’t just because If you are afraid of "bad debts", you will abandon this market. Assuming that the home improvement channel can bring about 30 million sales to the company a year, then if the unrecoverable amount is controlled within 5%, this "loss rate" is still acceptable.
4
Product Trends
Personalization and customization have become trends
Guiyang Gold Medal Asian Stone Slab Store< /p>
The rejuvenation of consumer groups is an essential change that has occurred in the national ceramic tile market. As the younger generation of consumer groups dominates, the trend of ceramic tile products in the market is also changing with each passing day. As a "contradictory" city with low housing prices and high consumption power, Guiyang's owners have higher decoration budgets and higher requirements for home decoration quality than other regions. Therefore, new things and new styles are popularized relatively quickly in the local market.
Guanzhu Ceramics Guiyang dealer Zeng Xin
Accepted an interview with China Ceramics Network
Zeng Xin, a Guiyang dealer of Guanzhu Ceramics, said that sales of 900X1800mm large boards have increased significantly since this year, and larger 1200X2400mm large boards are also very common in background wall applications. According to sales data statistics, most of the customers currently served by Guiyang Guanzhu use 600X1200mm products on the wall in their bathrooms.
Jianyi marble tile dealer Lin Zhong also expressed the same view. Customers' acceptance of large 900X1800mm slabs is relatively high whether they are used for walls or floors. From a designer's point of view, Lin Zhong believes that long tile specifications are more malleable in space than square tiles.
Huang Haiyu, General Manager of Gold Medal Asia Tiles Guizhou Branch
Accepted an interview with China Ceramics Network
It is worth noting that the acceptance of rock slabs in Guiyang is very rapid. According to Huang Haiyu, general manager of Gold Medal Asia Tile Guizhou Branch, Gold Medal Asia has a slate home customization hall in Juran Home (Jinyang store)Since its opening, as the popularity of slate has become more and more popular, it has gained good attention and market response, with a share growth rate of nearly 6%; it has reached stable cooperation with many high-end mansion decoration companies and designer studios.
Oufolai Ceramics, Italian I.T imported bricks Guiyang dealer Shi Quanpan
Accepted an interview with China Ceramics Network
In terms of product styles and tones, Shi Quanpan, Guiyang dealer of Ofulai Ceramics and Italian I.T imported bricks, said that the black, white and gray tones that have been popular in recent years have changed this year. More and more customers are showing greater interest in colorful products. At the same time, as embellishments in design plans, flower patches and colored bricks are increasingly used. Shi Quanpan believes that modern young people prefer personalized products with texture.
This article only truthfully conveys the market situation. If you have different views on the market, please leave a message in the comment area to discuss.
China Ceramics Network’s 2020 National Tile Market Survey [Guiyang Station] is still continuing, thank you for your attention!
Author: Hong Xiaochun
