Flooring industry is about to usher in warm spring

After more than a year of "winter" period, the floor and other pan-home industries are gradually revealing "warmth." Its performance is as follows: Some companies have grown in defiance and continue to create miracles; others have turned crisis into an “opportunity” and have undergone structural adjustments; some companies have achieved magnificent transformations and have successfully transformed and upgraded; some have not feared the difficulties of the market. Skateri re-layout; some companies change the traditional marketing model, completed the channel **...... According to this situation and many factors, industry insiders asserted that: China's flooring industry has gradually set aside the fog, embarked on the "recovery" and "revival "The road, this recovery will be fully demonstrated in the spring and summer of 2013.

One of the motivations: The domestic economy has stabilized and rebounded

According to data released by the National Bureau of Statistics on November 27, 2012, from January to October, the industrial enterprises above designated size achieved a profit of 402.4 billion yuan, a year-on-year increase of 0.5%. From a single month's data, the profit for the month of October was 500.1 billion yuan, a year-on-year increase of 20.5%; the monthly growth rate for a single month also rose sharply from 7.8% in September. The sharp recovery in the profits of industrial enterprises further confirmed the momentum of the stable recovery of the economy. Among the 41 industries, 27 industries saw a year-on-year increase in profits. Among them, the state of furniture production in the country continues to be in a good state, and the increase in output has increased steadily from the same period of last year. From the point of view of growth, the production of furniture production industry is expanding significantly, up 14.87% year-on-year.

In addition to the profits of industrial enterprises, many economic indicators rebounded in October. The year-on-year growth rates of investment, consumption, and export all rebounded, and the growth rate of industrial production also continued to rise. As a leading indicator of the macro economy, the HSBC China Purchasing Managers' Index for November ( The initial value of PMI returned to the expansion zone for the first time in 13 months. Although future profits are unlikely to maintain such a high growth rate, the income growth rate has been steadily recovering under the background of the industrial added value and the production price index (PPI) bottoming out. Therefore, profits will continue to grow steadily.

Motivation 2: Global Focus on the Chinese Market

The United States, the world’s “biggest” economy, stands on the edge of the “fiscal cliff”; the risk of the European debt crisis has been wave after wave; the growth of many emerging market economies has slowed down... Interestingly, on November 7, 2012, statistics released by the Ministry of Commerce showed that China has become the world's largest exporter of goods and the second largest importer of the world for three consecutive years. Moreover, it is expected that the total size of China’s imports in the next five years may exceed US$10 trillion, which will undoubtedly become an important driving force for the global economy. The member of the International Financial Forum ** group and former Prime Minister of New Zealand, Jenny Shipley, said at the International Finance Forum that many responsible leaders in the world have felt that the focus of the current global economy has turned to China.

China has now become the second largest economy in the world. While stimulating the rapid development of its economy through the introduction of advanced technology and funds, China has also provided land, resources, and labor at the right price for the world's major multinational corporations. At present, the economic downturn in Europe and the United States, if China can successfully find a way to achieve balanced development of the economy, it will certainly help Europe and the United States, bring opportunities to the world and drive the world economy out of the predicament. Anup Singh, head of the Asia Pacific Department of the International Monetary Association, said that for the first time in the global economic recovery, emerging markets such as China have become “leaders”.

Motivation 3: "**" Promotes Economic Transformation

*** The report proposes "one goal" and "two doublings": ensuring that by 2020 the grand goal of building a well-off society in an all-round way will be achieved and the per capita income of GDP and urban and rural residents will be doubled compared to 2010. This means that on the current basis, China must maintain an annual GDP growth rate of 6.8% to achieve its goal. This not only reflects the concept of “people-oriented” and attaches importance to improving people’s living standards, but also puts forward a more specific and specific governing requirement for the new government.

China's economy is in an important historical transition period. In March 2013, the country will hold a “**” nationwide. On the one hand, the conference will promote the second transformation of the Chinese economy. To achieve the transformation, we must vigorously develop strategic emerging industries, promote urbanization, stimulate domestic demand, and cultivate new ones. The source of economic growth. This has brought good opportunities for development to the entire industry and will surely stimulate the enthusiasm of innovation and entrepreneurship in the whole society, especially the entrepreneurial spirit of entrepreneurship. On the other hand, the “**” will complete the change of government. The new government will actively promote economic restructuring and use actions to complete the various commitments and tasks that have been made to Chinese society and the people. This transition and change will be fully demonstrated in the April and May shortly after the “**”.

Motivation 4: The real estate industry is still the pillar

Vice Premier Li Keqiang revealed in his study article that he will continue to use real estate as an economic pillar. In the world economy slowing down, we must rely on expanding domestic demand to achieve sustainable development. The real estate industry is an important way to expand domestic demand. By accelerating urbanization, there will be a considerable amount of rural surplus labor and population transferred to cities, which will bring about a substantial increase in investment and a rapid increase in consumption.

According to data released by the National Bureau of Statistics from 2005 to 2011, among the three major consumer, export and investment requirements that constitute economic development, China’s housing accounted for the highest share of all household consumption, accounting for 18 points. the above. In addition to its energy consumption, which accounts for more than 3%, and the direct housing consumption and investment housing consumption combined to account for 15 points, the investment into housing consumption accounted for part of our GDP increase. The 1.5% for China's economic pull is also not available in other industries. Whether it is the automobile industry, tourism industry, or machinery manufacturing industry, no one industry can consume more than real estate, which proves that in the current economic development in China, the real estate industry is still the pillar industry of the Chinese economy. Sustainability may also be postponed for a long time.

Motivation 5: Robust growth in property market transactions

The real estate market at the end of 2012 is already a "warm winter". The first is the loosening of **, and the speed of approval has also returned to the same situation as when real estate was the most heated in 2007, and it was again on the *****. Followed by the relevant departments that limit purchase, limit loan policy will not continue to spread in the second and third tier cities. The third is the gradual disappearance of the “bubble” in the property market and the “bottom of the diamond” cast.

According to reports, the number of contracted sets of new residential buildings in 54 major cities across the country has reached 236,295 sets. Exceeded the same period in July that hit a new high of nearly two years. The increase rate from the same period in October was 30.6%. The number of new houses signed in major cities across the country also reached a new high during the year. On November 27th, 2012, the land market in Beijing and Shanghai had “land king” on the same day, and the floor price was more than 30,000 yuan per square meter. At the same time, relevant data show that since the fourth quarter, nine cities including Beijing, Guangzhou, Tianjin, Chongqing, Chengdu, Wuhan, Changchun, Nanjing, and Hangzhou have only supplied 653 hectares of residential land last week, a record high for the year. At the same time, second-hand market turnover hit record highs. Frequently appeared "Japan CD-ROM" around. Since the real estate industry can have such development under the state's key control, the pan-home industry as a downstream industry can be more optimistic about the city and do not need any additional worry.

Motivation 6: The urbanization rate is huge

After the conclusion of the meeting, Li Keqiang, member of the Standing Committee of the Political Bureau of the Central Committee and Vice Premier of the State Council, repeatedly emphasized in his public address that the urbanization rate in China is just over 50%, and that only about 35% of population is calculated by It is lower than the average level of nearly 80% in the developed countries. The gap is potential. Looking ahead, urbanization is a huge engine for China’s economic growth. He believes that basing on the strategic point of expanding domestic demand needs to promote the development of urbanization and promote the development of urbanization, which can release the huge potential of domestic demand, promote long-term stable and rapid economic development and social harmony and progress.

The urbanization rate in China, according to official data, is 47.5% by 2010. Urbanization rates in developed countries like the United States, France, and Britain are basically above 80%. In other words, the urbanization rate in China is very large. There are very many farmers who want to enter the city, or their homes must change the small cities. As long as the urbanization rate is further increased by 10% in the next five years, there will be 130 million people want to solve the housing problem. In other words, when we are in 2020, the urbanization rate should reach 60%. With such data support, everyone's confidence in the real estate market and home building materials market should be very full.

Motivation No. 7: Natural Renovation of Home Renovation

Relative to the flooring industry, apart from the new real estate sales area and sales data, we also have people's spending habits. In general, when the house is 5-8 years old, it is time for a second renovation that requires renovation. Because after five or six years of living, whether it is the floor, or all aspects of the interior worth mentioning, are inevitably to be "abandoned." The last real estate boom was in 2006 and 2007. If it starts from then, it will be refurbished in the spring and summer of 2013. This is definitely a very good information for the wood flooring industry. .

In addition, the traditional three-generation family living in the same classroom is also changing from "one divides into two" or "one into three." The real estate industry investment model has also changed. The former people basically bought short-lived speculators. After they bought it, they did not make any modifications to the house. They may not be able to sell for a few months to make a small difference. But now it's not the same. After the real estate regulation, the transaction costs are increased. In this way, if you want to get a bigger appreciation, you must hold it for a longer time before it is possible to realize. The house is empty and they are going to be renovated and then rented out. As long as the renovation, the pan-home industry is real good.

Motivation 8: Rigid demand for flooring

Real estate control policies will have an impact on the flooring industry is self-evident. Under the regulation of real estate policies, whether it is the change in the number of transactions or the price changes, it will certainly have a certain impact on the floor market. According to statistics from the China Association of Home Furnishings, according to real estate laws, when the market is very popular, it is usually a 5 to 1 relationship. In other words, when the real estate market is booming, there are usually only 1 or 2 sets of floors in 5 houses that need to be purchased, and when the real estate market is not very good, usually 1 to 1 or 2 is used to buy a house. Ratio of about 1 or so. In other words, when the real estate market is not good, the person who buys a house is really in need of it, and often there is a need to purchase a floor for a suite, and this requirement is rigid and real.

The market's rigid demand for wood flooring also shows that in recent years, China has ushered in the peak period of marriage. This rigid demand for wood flooring is very large. Even if you do not buy a house, it will be renovated based on the original living environment. Then buy flooring and other home products. In this situation, the reason for optimistic about the floor market next spring is tenable.

Motivation No. 9: Shuffling Ends Industry Take-off

Since the outbreak of the financial crisis in 2008, floor manufacturers and distributors have been in trouble, sales have fallen, profits have plummeted, and even losses have resulted in job losses. Many small and medium-sized floor companies and dealers lacking strength have been eliminated. The survival of the fittest conforms to the laws of market economy development. As competition eliminated the weaker, the allocation of resources became more reasonable. Excellent talents flow to outstanding enterprises, and good resources flow to economical and environmentally friendly enterprises, which will promote sound development of the industry.

In the process of shuffling, it also forced flooring companies to work harder on product innovation, design, production technology, quality control, and internal management to reduce costs and improve overall competitiveness. At the same time, after dealers shuffled, those dealers with high operating levels, well-funded and well-served services were able to win. In this way, in the past, the kind of pros and cons of the floor production and sales market will be significantly improved, the floor market will develop in a more standard and healthy direction, and the profit margins of manufacturers and distributors will be increased. After shuffling, the flooring manufacturers and distributors that will win will surely seek new leaps and developments in the flooring industry with new ideas, new methods, new channels, and new models, thereby promoting the industry's rapid development.