Hangzhou has closed nearly ten home shopping malls

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Cold gusts Hangzhou closed nearly ten home stores in three years

cold gusts Hangzhou closed nearly ten home stores in three years

July 8, 2013

[China paint information] when will Eurasia riverside store evacuate? Where should merchants go? Huang Geng, general manager of Eurasia Hangzhou branch, replied to this newspaper: they have always worked hard to promote the normal operation of Binjiang store. Up to now, Binjiang store is still operating normally and fully safeguarding the interests of consumers and dealers

in case of withdrawal, how can consumers who have purchased goods protect their rights? The other party said that if there is a situation of withdrawal, Eurasia home Hangzhou branch will honor its service commitment when a certain load can no longer rise, be responsible to consumers to the end, and cooperate with home factories and dealers to properly solve all kinds of after-sales matters

it is midsummer, but the home furnishing industry is cold. As the end industrial chain of the real estate industry, the home furnishing industry has developed and expanded with the prosperity of the real estate industry. At present, with the downturn of the real estate industry, it has also slipped to the recession range. Since 2011, after years of rapid expansion, Hangzhou has ushered in a wave of closures of home shopping malls. In addition to the poor environment, the rapid expansion and extensive profit model of home shopping malls in the early stage are also a "sharp blade" for them to encounter Waterloo

home shopping malls are chilly.

nearly ten stores have been closed in Hangzhou in three years.

let's start with ouyada Binjiang store

this is Eurasia's third store in Hangzhou, which earned enough attention when it opened in 2011. In order to seize the beach in Hangzhou, Eurasia can be described as a "huge" investment -

the volume of Binjiang store is equivalent to the sum of the other two stores, with a scale of 120000 square meters. The daily rent here is as high as 2.5 yuan/square meter, and the annual cost of mall rent alone is as high as 100million yuan, not including mall operation and management and personnel expenses

helpless, the real estate situation is poor, the market is weak, and under the high operating costs, it is difficult to maintain the operation of the mall. As of the end of April this year, less than two years ago, aside from the fixed investment in the early stage, the operating loss of Eurasia riverside store alone has reached more than 100million yuan, and the operation is unsustainable. (data source: on May 9, Eurasia Group sent the landlord "Zhongnan Construction Group" a "contact letter on negotiating the termination of the lease contract between the two parties")

"Hangzhou home shopping mall has reached saturation, and Eurasia Group is expected to see this." Yesterday, jianghongyuan, President of Zhejiang Furniture Industry Association, said that a few years ago, he shouted that there was a serious surplus in the home market, but no one paid attention to it

the landlord of a home furnishing mall in Hangzhou recalled that from 2008 to 2010, when foreign chain home furnishing enterprises rushed to Hangzhou, in order to seize the golden home furnishing business district and key areas, many mall owners entrusted various relationships to find them. "The night before, we talked about the daily rent of 2 yuan/square meter, and the next day, another house came to the door and directly offered 2.4 yuan/square meter."

"before 2009, life in Hangzhou home shopping mall was relatively easy." Jiang Hongyuan said that at that time, almost every business was popular, but later, the whole industry expanded blindly, and many commercial real estate added fuel to the flames, and home shopping malls became popular

in July 2011, the Hangzhou store of the national chain store was evacuated. Just in the same building, two years ago, the "tianxinglong" home furnishing Expo Center left sadly after opening for one year. In May, 2011, Heping furniture, a local shopping mall in Hangzhou and an old home furnishing market in Hangzhou that has been operating for 12 years, stopped business. In these twoorthree years, nearly ten shopping malls, large and small, have been closed in Hangzhou

at present, there are 15 home shopping malls in Hangzhou, of which 1/3 are at a loss, 1/3 are flat, and 1/3 are profitable

high frequency promotions

shopping malls are worried about not receiving rent

home shopping malls are opening larger and larger, and they also have a difficult experience

"the worse the market, the more activities should be carried out. No promotion, no sales." The relevant person in charge of the marketing department of a large home shopping mall in Hangzhou sighed

last weekend, they carried out a two-day and two night promotion, which lasted until the early morning. Of course, the effect is OK: more than 20 million in two days

last year, the mall held thirteen promotional activities, large and small. Every time we engage in promotional activities, it is the busiest day for the marketing team. "It costs a lot of energy, not to mention the cost." The person in charge revealed that they spent 1million yuan (including advertising and subsidies to businesses) on this two-day event, which was actually out of the pocket of the mall

this cost will be at least 10million yuan a year. "The direct benefit of such investment is that there is indeed theoretical support for it." The person in charge said

unlike traditional department stores, this pure rental home shopping mall has no sales commission. " To be clear, we are guaranteed to receive the rent in case of drought or flood, but the market is not good. If the operating households do not receive the rent, we are worried that we will not receive the rent. "

so the logic of every big promotion is: the Mall attracts popularity through promotion, the operating households have business, the account has money, and the rent of next month will be deducted naturally.

" to be honest, we are also helpless in this market. " Mr. Shen, the person in charge of another home shopping mall in Hangzhou, said that although the market is depressed, the annual expenditure is rising, and the most important one is marketing expenses, accounting for nearly 60%. For example, the operating cost of a home shopping mall with an area of 100000 square meters is about 16million yuan a year. Excluding property, labor, taxes, etc., the marketing cost is about 10million yuan. The situation of peers is similar

how long does the impact test function last? At present, most of the home shopping malls in Hangzhou adopt the pure leasing system, and earn the rent difference when they are "second landlords"

"this profit model is relatively simple, but it also exposes many problems." Jianghongyuan, President of Zhejiang Furniture Industry Association, said that stores make profits through rental fees, and the rent paid by merchants accounts for an average of 30% to 40% of sales. As a result, merchants are reluctant to enter the market because of their thin profits. In addition, shopping malls open too many and too fast, and more people share the same piece of cake, but less people share it with each family

merchants are confused:

there are more stores, and the profits are diluted

facing the current complex household market pattern, merchants have also become confused

Mr. Fang, from Taizhou, has been operating European style (European decoration effect drawing) home furnishings for seven or eight years. His original words are "in previous years, he sat and collected money, and in recent years, he has been struggling and looking forward to coming out."

at present, Mr. Fang has three stores in Hangzhou. The first one was opened in 2007, which is the best market. Less than two years later, the investment was recovered. Then in 2010, he opened a second one, less than half a year later, and opened a third one. This time, he completely "planted" in it

"European style home furnishings have a lot of investment, and the decoration cost four or five million yuan at once." Mr. Fang's smallest store is 400 square meters, and the initial investment cost 700000. Judging from the current market, the cost recovery is far away

"that's all the demand. There are more stores, and the guests are also diverted." Mr. Fang said that in recent years, he obviously felt that the overall profit was getting thinner and thinner. "Now there are more and more shopping malls, and the discounts are getting bigger and bigger. Now 10% of the profits are very good."

many merchants around Mr. Fang feel the same. "We all rely on support to endure. If we can't, we have to withdraw." One of his home shopping malls has an annual renewal rate of about 50%. "New faces often appear."

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