China's home furnishing industry is dominated by niche and scattered local brands, and the industry concentration is extremely low. Take the two largest home furnishing shopping malls, Red Star Macalline and Juranzhi Home Furnishing as examples, the total market share of the two combined accounts for less than 10% of the domestic market, and there are some scattered small brands, which can hardly be calculated. into the market share.
Companies like Home Depot are basically zero in China, and this is the development pain point of my country's home construction industry and the extended hardware and building materials industry. Not only the market share is extremely low, but also there is no perfect management system and market environment. For most consumers in need, they only trust import channels or foreign supermarkets.
Market chaos, small branded businesses, and undocumented small workshops make up a large part of the industry. Along with this, there are problems such as low degree of intelligent transformation of the industry, low industrial efficiency, and poor user experience.
For example, to renovate a house, the business model in the United States is likely to be that the owner or the owner hires someone to help, then go to Home Depot, buy wood, tiles, paint, etc., and come back to start work. End consumers do not have contact with the upper-class suppliers at all, and almost all of them go through the middlemen of Home Depot.
China's decoration model is to contract labor and materials, or contract labor without materials, and then go to various small stores in the building materials market, specializing in tiles, specializing in paints, etc., and many of these small stores are agents of building materials manufacturers, or even directly It is opened by building materials manufacturers, and end consumers have to deal with various and mixed suppliers by themselves.
One is do-it-yourself and one is do-it-for-me. Therefore, China's building materials manufacturers are more aimed at professional painters (pengyu tool paint brushes, the best choice for painters), professional masons, and professional decoration contractors, and Home Depot in the United States is more aimed at every ordinary consumer. Judging from foreign experience.
Home building materials grow to a certain stage, and they will definitely take the path of industrial integration. Everyone played their respective advantages and finally formed such an alliance model, which is very in line with the current trend. China's hardware and building materials market still has great and broad room for improvement. After rounds of mergers, acquisitions and reorganizations, it will one day become a company similar to Home Depot and Lowe's.
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