The first floor market is saturated. The second and third line markets have earned money.

The author learned during the visit that the reason why these flooring brands are such a vibrant scene in the second and third tier cities is to look at it from three aspects:

First, due to the excessive pressure of survival in the first-line home stores and the viciousness of the store The competition is intensifying. Nowadays, the number of home stores in first-tier cities has exceeded the actual consumption needs of urban residents, both in terms of quantity and scale. Often in some home stores, there is no consumer from top to bottom, and a large amount of consumer demand is dispersed, resulting in a large part of the home market is not enough, and some even on the verge of bankruptcy.

However, the most affected brands are the many brands that have settled in the store. When these brands found that first-tier cities had already saturated due to excessive development, they had to turn their development to the second- and third-tier markets that are still in their infancy.

Second, the second and third floor market in the initial stage is another important reason to attract many brands into small cities. After the first-line market is saturated, there is not much room for these brands to survive, and they can only enter the second- and third-line markets with wider space. As the brand awareness of these brands occupies a clear advantage, consumers are more recognized for their brands and products, and brand-name companies that have entered the mature stage will sooner or later enter these places to seek development.

Third, with the rise of the national real estate market in recent years, the pace of urbanization has accelerated, and more and more floor consumer demand has been highlighted. Therefore, the real estate market has also invisibly promoted the development of the flooring industry in recent years. Where there is demand, the product will radiate where. In the past one or two years, due to the obvious overheating of the domestic real estate market, many major problems have been caused that seriously affect the national economy and the people’s livelihood. The first-tier cities are particularly obvious.

In order to control the excessive and rapid development of the real estate industry, the state issued a series of control measures to curb the rapid development of the real estate market, and also targeted the first-tier cities. Although house prices have been contained, consumer demand has been ruthlessly suppressed. Business is getting harder and harder, and many brands are forced to develop in the surrounding second and third tier cities. The situation that has caused today can be said to have a lot to do with the state’s regulation of the real estate market.

Release date: 2012/1/6 13:13:14

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