How much does the continuous disturbance of the epidemic affect the household industry?

Recently, the COVID-19 continues to stir, affecting the customer flow of home stores. At the same time, the backlog of upstream goods and the artificial rise in rent have brought many challenges to the development of household enterprises.

Red Star Macalline Beijing Global Home No. 1 Store is closed!

On November 22, Red Star Macalline Beijing Global Home No. 1 Store issued a notice on business adjustment of the mall.

The notice shows that in order to fully cooperate with the epidemic prevention and control work, Red Star Macalline Beijing Global Home No. 1 Store will be suspended from November 23, 2022, and the business hours will be notified separately.

According to the data, Red Star Macalline Beijing No. 1 Home Furnishings Store was opened in 2010, with a total floor area of about 163000 square meters, mainly engaged in various kinds of furniture, building materials, decoration, etc. It is a situational home experience mall built by Red Star Macalline's seventh generation mall. Among them, the store has two halls of building materials and furniture, a total of 12 floors, gathering a total of 45 categories. In 2021, Red Star Macalline Beijing No. 1 Home Furnishing Store will be reopened, which will not only upgrade basic services, but also build nine theme pavilions, bringing together brand flagship stores and stores.

At present, the epidemic situation in Beijing is severe and complex. It is reported that on the 22nd and 23rd of the 22nd and 23rd consecutive days in Beijing, the number of newly infected people exceeded 1000, and the number of social cases rose in a fluctuating manner. This is the third home furnishing store in Beijing that announced its suspension of business after Jimei Home and Chengjia Plaza outside the city.

Oupai Home Appliances responds to the impact of the epidemic in Guangzhou

Recently, during the communication with more than 180 investors, the relevant person in charge of Oupai Home Appliances said that the epidemic situation in Guangzhou had a limited impact on the company's income, and the epidemic situation outside Guangzhou had a certain impact on the business.

Guangzhou's revenue accounts for a very small single digit of the total revenue, which has limited impact on the company's overall business.

In addition, the company's operation headquarters is in Baiyun District, Guangzhou (Note: the epidemic situation in Guangzhou mainly occurred in Haizhu District), and the epidemic situation in Guangzhou has little impact on the company's overall operation.

However, there are still some control areas in many places outside Guangzhou, so the epidemic has a certain impact on the company's business in other regions.

According to the financial report for the first three quarters of this year, Oupai Home Appliances' operating income in the first three quarters of this year was 16.269 billion yuan, an increase of 12.96% year on year, and its net profit was 1.99 billion yuan, a decrease of 5.82% year on year.

This set of data shows that the impact of the epidemic is still clear.

In particular, in the third quarter, the operating income only increased by 6.02%, the net profit decreased by 11.71%, and the net profit excluding non recurring profits and losses decreased by 12.05%.

As for the business situation in October, Ren Cai said when communicating with investors from November 7 to 11: "Since October, the multi-point precise sealing and control measures brought about by the epidemic still have an impact on the normal operation of the front end dealers' stores of the company. On the whole, the business situation of the company in October has maintained a steady growth."

Normalization of epidemic situation brings long-term impact to the household building materials industry

The epidemic has lasted for nearly three years and has repeatedly occurred. It is necessary to recognize that the epidemic has brought long-term, far-reaching and multiple impacts to the entire building materials and home furnishing industry.

In 2021, the sales of building materials and home furnishing stores above designated size nationwide will increase by 54.43% year on year, which is mainly caused by the special situation of the outbreak of the epidemic the year before last.

In the first half of 2022, the overall annual report of listed household building materials enterprises shows that the total revenue is 102.663 billion yuan, with a year-on-year growth of 3.85%; The net profit attributable to the parent company totaled 6.969 billion yuan, down 20.15% year on year. More than 40% of enterprises declined.

In fact, last year was still at an unknown stage of the epidemic development direction, and the decoration market was still suppressed and on the sidelines. This year, the epidemic situation was sporadic. With the efficient planning of epidemic prevention and control and economic and social development, although the rigid demand for building materials and home furnishings in non epidemic areas was constantly released, the overall impact was greater than last year.

The continuous development of the epidemic has made many people no longer spend freely.

In the first half of the year, the goods for building materials and home furnishing consumption should first be the inventory in the hands of building materials and home furnishing sellers, and then be transmitted to the production end. The market sensitivity is much higher than that of production.

For example, in the first half of the year, the output of sanitary ceramics in most sanitary ware production areas declined to varying degrees. However, in fact, this year's decline of some production enterprises was mainly due to the decline of real estate projects. Some enterprises were affected by the debt crisis of several real estate enterprises, and the decline of engineering channels. The real terminal retail did not show a serious decline. In addition, although the seller has inventory products for sale, due to the uncertainty of the epidemic situation, they do not dare to purchase large quantities of goods, which makes the production side feel worse. Therefore, enterprises need to re attach importance to dealer channels, store retail channels and emerging network channels.

Of course, the epidemic has also accelerated the pace of industry integration and reshuffle. Some enterprises with insufficient innovation have already felt the difficulty of survival. Industry concentration is gradually increasing, and market competition is becoming increasingly fierce.

To sum up, the cost of the home building materials industry has been rising, which can only increase the price of products.

Under the pressure of economy, consumers tend to be cautious about purchasing household building materials.

Under the condition that the current real estate is not as expected, it is expected that the consumption demand of home building materials will continue to weaken in the short term. However, as home building materials continue to expand to infrastructure and municipal business, their market space will continue to expand, demand will continue to increase, and the demand for home building materials will rise steadily.