Industry reshuffle, how should the business prepare for the "winter"?

[Text / "High-tech LED - Lighting Market" September issue Qiu Zuling]

Under the country's strict real estate control policy, the popularity of the building materials market in Chengdu has dropped sharply. Coupled with the rapid expansion of the number of stores in Chengdu this year, more than a dozen large and small building materials stores have made business operations even worse.

From the reporters visited the major building materials market in Chengdu in July, there are already signs that the terminal building materials market has already appeared to be reshuffled. In the face of the overall industry downturn, Chengdu businesses should be prepared to deal with it.

Real estate regulation and control policies are hard to see signs of loosening

The lighting home improvement market is closely related to the real estate market. After the first two years of domestic housing prices soared, house prices have exceeded the purchasing power ceiling of ordinary people, which indirectly affects the sharp decline in passenger traffic in the building materials market.

This year's government work report clearly shows the determination of the central government to continue to strengthen real estate regulation. Strictly implement and gradually improve policies and measures to curb speculation and investment demand, further consolidate the results of regulation and control, and promote the reasonable return of housing prices.

Since then, the relevant government departments have adopted a series of supporting policies such as tight currency, price limit, and purchase restriction. The real estate market has been the most severely suppressed.

According to the monitoring data provided by Chengdu Yicheng Real Estate Management Research Department, the transaction volume of Chengdu real estate in the first half of this year has been in a process of stagnation, but in July this year, the volume of transactions rebounded sharply, up 30% year-on-year. It is hard to judge whether the turnover of Chengdu real estate will gradually pick up, but the traffic volume of Chengdu's major building materials market is still decreasing year by year.

Nowadays, the lighting distributors in Chengdu's major building materials market have begun to complain about the market. The reporter learned in the interview that some dealers already have the idea of ​​transferring the store.

Table 1: List of major lighting stores in Chengdu

Source: Gaogong LED Industry Research Institute (GLII) research and finishing

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