Hardcover Housing Market Opportunities Home Enterprises Deepen Engineering

Home industry is always closely related to consumer life. In today's weak demand and fierce market competition, we are trying to find a better model to improve sales. In 2017, the wind of hardbound houses began to blow, which also brought new ways of survival to household enterprises and deepened engineering channels. As early as 2008, the Ministry of Housing and Urban-Rural Construction issued the Notice on Further Strengthening the Management of Residential Decoration and Fitment, which guided and encouraged the new commercial housing to be fitted in place at one time or menu-style.

In 2017, Henan Provincial Housing and Construction Department issued the Notice on Accelerating the Development of Finished Residential Buildings, requiring that by 2020, the proportion of hardbound houses will reach about 80% of newly constructed residences, and it has become a new trend to carry and check in bags.

Chengdu stipulates that by the end of 2020, the total area of new commercial housing and finished housing in the central city will be 100%.

Zhejiang, Shandong, Hainan, Jiangsu and other places have also introduced relevant hardbound housing policies, it is predicted that by 2020, the number of provinces (cities) that have introduced the full decoration policy will reach 25. "Rough Housing" delivery era will gradually withdraw from the real estate market.

Hard-fitting room refers to the house where all the fixed surfaces of the functional space are paved or painted and the basic facilities of the kitchen and toilet are installed before turnkey. With the quickening pace of life of modern consumers, simple room can help save time. At the same time, developers of hardbound room generally purchase large quantities of building materials, which is much more preferential than individual purchase, and also saves costs for consumers. Policy orientation, market orientation, these factors are promoting the arrival of the hardcover housing market.

Policies on hardbound housing have been issued in succession in various regions, and real estate developers have actively kept up with the policy pace. Including Vanke, Biguiyuan, Hengda and so on, all have implemented the hardbound room, which belongs to the era of hardbound room has come. According to Oviyun real estate data monitoring, in 2018, the opening scale of fine-decorated commercial housing increased by nearly 60%, reaching 2.53 million units, and the market penetration rate reached 27.5%. In the first half of 2019, the opening scale of refined/fully decorated commercial housing in China was close to 1.3 million units, an increase of more than 17% over the same period last year. Regionally, the opening scale of fine-decorated/fully-decorated residential buildings in East China exceeds 480,000 units, an increase of 18.8%, and the national market accounts for more than 37%, becoming the mainstay, driving the national market rhythm. Among them, Jiangsu, Zhejiang and Shandong all opened more than 100,000 units, Shandong and Fujian increased by more than 40%, and Shanghai increased by 60%.

Big brand household enterprises expand engineering channels

Hardcover room market, big brand furniture enterprises are more attractive at this time, decoration is not a process of immediate quality effect, while controlling costs to ensure quality, developers will choose to cooperate with well-known furniture brands, so as to achieve better quality. Reduce some unnecessary quality risks.

Through the first half of the year's household enterprises'financial reports, we find that many household enterprises are actively entering the engineering channels, and indeed directly give a return on revenue.

Europa engineering business is one of the important pulling points of Europa's performance growth. In the first half of 2019, Europeans took root in the development, maintenance and in-depth cooperation of the Top 100 strategy. By the end of June, 47 countries had signed strategic cooperation with the Top 100 real estate companies in China. Europeans give full play to the advantages of "Group + Service Provider" model in order to obtain sustainable recognition of real estate customers and continuously improve the project turnover rate.

In the first half of the year, the revenue of our home business reached 888 million yuan, an increase of 262.82% over the previous year. According to the financial statements, the promotion of bulk business mainly comes from the company's increased cooperation with the national TOP50 real estate companies, and seize the market share of fine decoration. In the first half of 2019, Piano successfully introduced many real estate agents, such as Poly Real Estate, Sunshine 100, Austrian Garden and so on, to expand the national project distribution coverage area.

In addition, including Jiangshan Europeans, Golden Cabinet, etc., are also actively cooperating with real estate companies to develop engineering channels and gain a share in the new market opportunities.

We also found that ceramic tile bathroom enterprises have also made good returns after they entered the engineering channels. Taking Diou Home as an example, their business income in the first half of 2019 was 2.498 billion yuan, an increase of 30.13% over the same period of last year, which was mainly due to the growth of Oxono self-owned engineering channels. In the first half of the year, OSENO realized revenue of 2.25 billion yuan, of which engineering business revenue was 1.68 billion yuan, an increase of 43% over the previous year. Expanding real estate cooperation clients to medium-sized real estate developers. On the basis of maintaining the cooperative share of core real estate customers such as Biguiyuan and Vanke, we have also established strategic cooperative relations with large and medium-sized developers such as Yajule, Rongsheng and Fuli.

Facing the new trend of fine decoration industry, it is also promoting the ability of household enterprises to improve, including design, manufacturing, service capabilities, etc., which will inevitably be left behind by enterprises with outstanding strength. Home enterprises in a comprehensive upgrade, with a more suitable rhythm to join hands with real estate companies to achieve win-win situation.