In 2013, the flooring industry was entering a crucial transition phase. According to Qin Zhanxue, vice president of the China Building Materials Circulation Association, the entire building materials sector—including flooring—was undergoing significant changes. This shift was reflected in various market indicators, including the National Building Materials Boom Index (BHI), jointly developed by the Ministry of Commerce's Circulation Department and the China Building Materials Circulation Association.
The BHI data from October and November of the previous year showed a downward trend compared to the same period in previous years. Even during the traditional peak season for home building materials, the market didn't show the usual level of growth seen in past years. This suggested that the industry was facing challenges, with demand fluctuating and consumer behavior shifting.
Qin Zhanxue noted that while the BHI primarily focuses on home building materials, it also serves as a barometer for the broader floor and furniture markets, as well as the real estate sector. The index highlighted a slowdown in growth and an overall sense of uncertainty among industry players.
Meanwhile, the retail market was also experiencing rapid restructuring. Many once-dominant home furnishing stores were taking proactive steps to reduce their costs. Measures such as rent reductions and support programs were introduced to help dealers navigate the difficult period. However, despite these efforts, factors like shrinking market demand, rising operational costs, and fierce competition continued to create instability in the sector.
Reports of store closures, brand withdrawals, and financial struggles among distributors became more frequent. In Beijing alone, several major home building material stores, such as Beijing Xinglong Home Building Materials City, Jinkai Leading Furniture Stores, Oriental Homeland Lishuqiao Store, and Baianju Bridge North Store, had either closed or relocated since March of the previous year.
Internationally, the situation was no better. Home Depot, the second-largest home improvement retailer in the U.S., announced the closure of all its stores in China, unable to survive the challenging market conditions. Similarly, Baian Habitat, a well-known foreign home furnishings brand, faced persistent losses in the Chinese market, with its financial reports showing six consecutive years of negative performance.
These developments underscored the need for innovation, adaptation, and resilience within the industry as it moved through this transitional phase.
Tianjin Alcoa International Trade Co., Ltd. , https://www.tjalcoa.com