Competition intensifies, Wuhan local decoration co

2022-07-22
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"Now Wuhan home decoration market is not easy to do." A boss of a small well-known decoration company who has worked hard in the home decoration industry in Wuhan for many years complained to the author, "the market is depressed, the competition is fierce, and the rising labor costs lead to the tension of the capital chain. It is estimated that a number of decoration companies will close down this year." The boss is considering moving the company to the third tier cities around Wuhan

the price war is still sluggish

as the boss said, Wuhan's home decoration market has encountered unprecedented difficulties this year. Due to the low threshold of setting up decoration companies, decoration companies bloomed everywhere in previous years. Now the market share is constantly shrinking, and the competition is more intense. Various decoration companies are changing ways to fight a price war. For example, launch low-cost packages, or send home appliances and other activities to attract customers. However, even with the introduction of more discounts, many decoration companies are still scarce, and few people are interested

"if it goes on like this, I think it's better to go to the third tier cities around Wuhan for development." Another decoration company boss said that they have visited Ezhou, Huangshi, Xiaogan and other cities and found that the construction of these cities has developed rapidly in recent years, and the home decoration market is in a period of development and growth, with full stamina. He believes that it is better to take the initiative to go out and explore the market than to wait for death in Wuhan. Recommended reading: the industry reshuffle is imminent, and Wuhan home decoration companies should seek breakthroughs.

third tier cities have low costs and low pressure.

the author believes that the reasons why Wuhan local decoration companies intend to develop in the surrounding third tier cities are mainly the following: first, the price of building materials in Wuhan is much cheaper than that in the surrounding third tier cities, and there are more varieties. Now most cities have opened the urban railway connecting Wuhan, which greatly shortens the round-trip time and reduces the transportation cost. Therefore, home decoration companies use the previous relationship network to transport building materials to third tier cities, and the cost is still low, which has won the price advantage for Wuhan local home decoration companies

second, foreign monks are good at chanting scriptures. Wuhan's decoration companies have been saturated and it is difficult to explore the market. In contrast, the home decoration market in the third tier cities has just started, and the home decoration companies in the third tier cities are far less professional and experienced than Wuhan in terms of design, construction and environmental protection concepts, so they are more competitive

third, the minimum wage standard in Wuhan has been rising in recent years, resulting in higher and higher labor costs. In comparison, the labor in the third tier cities is much cheaper than that in Wuhan. Moving the company to these cities to carry out business has reduced labor costs, and the pressure is naturally much smaller

IV. over the years, the third tier cities have developed rapidly, and new buildings are being demolished and built everywhere, creating a number of relocated households. These nouveau riche who become rich due to demolition often trust decoration companies from big cities more. Therefore, the decoration companies in Wuhan will develop in the third tier cities, and the market prospect is promising

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