In 2013, the flooring industry is entering a critical transition phase. According to Qin Zhanxue, vice president of the China Building Materials Circulation Association, the entire building materials sector—including flooring—has begun to shift from rapid growth to a more stable and mature stage.
Recent data from the National Building Materials Boom Index (BHI), jointly released by the Ministry of Commerce's Department of Circulation and the China Building Materials Circulation Association, highlights this change. The BHI shows that in October and November of last year, all key indicators fell compared to the same period in previous years. Even during the traditional peak season for home improvement products, the market did not show the usual surge in activity as seen in past years.
Qin Zhanxue noted that while the BHI primarily focuses on home building materials, it also reflects broader trends in the flooring and real estate sectors. This suggests that the slowdown is not isolated but part of a larger economic adjustment.
Meanwhile, the retail circulation market is undergoing significant changes. Many once-dominant home furnishing stores have started to reduce their presence, offering rent reductions and other incentives to support dealers during this challenging time. Despite these efforts, factors such as shrinking market demand, rising operational costs, and fierce competition continue to create instability in the industry.
Since the beginning of this year, several negative incidents have been reported, including store closures, business withdrawals, and financial difficulties among distributors. In Beijing alone, multiple well-known stores, such as Beijing Xinglong Home Building Materials City, Jinkai Leading Furniture Stores, Oriental Homeland Lishuqiao Store, and Baianju Bridge North Store, have either closed or relocated.
Even international giants are struggling. Home Depot, the second-largest home improvement retailer in the U.S., recently announced the closure of all its stores in China, signaling the challenges foreign companies face in the local market. Similarly, Baian Habitat, a major foreign home furnishings brand, has experienced six consecutive years of losses in mainland China, indicating deep-rooted issues in the sector.
As the industry continues to evolve, both domestic and international players must adapt to new market realities, focusing on efficiency, innovation, and customer engagement to survive and thrive in this transitional period.
Tianjin Alcoa International Trade Co., Ltd. , https://www.tjalcoa.com