The Stock Market Will Become The Main Battlefield Of Home Furnishing Enterprises In The Future

Recently, you may also brush this sentence “The saturation state of all walks of life in 2023 has reached its peak, and the next step is to roll to death, or be rolled to death by peers”, in fact, this sentence is also very suitable for today’s home industry.

According to the public information of the People’s Court announcement network, in the first half of 2023, a total of 106 real estate enterprises were declared bankrupt, which is the lowest number in the past two years. The figures reflect a possible slowdown in the pace of bankruptcies after the elimination of a fierce market. In addition, the number of bankruptcies of decoration companies still maintains the average level of the past two years, at 46.

Zhejiang, Guangdong, Xinjiang and Hunan provinces saw the most bankruptcies, with more than 10 each, followed by Jiangsu, Yunnan, Shaanxi, Guangxi, Hubei and Anhui provinces. In addition to the Pearl River Delta and Yangtze River Delta regions, Xinjiang also ranked third with 13, indicating that the speed of real estate elimination has spread from economically developed regions to the whole country.

For downstream suppliers, the impact of the hardcover room channel is huge. Taking Evergrande as an example, since the official “thunder” two or three years ago, the debt problem of downstream suppliers has not been completely solved. Previously, according to incomplete statistics, from 2022 to March 2023, there were 8 downstream supplier enterprises against Evergrande with a total litigation amount of more than 4.062 billion yuan.

In terms of decoration enterprises, a total of 46 decoration enterprises were issued bankruptcy documents in the first half of 2023. Among them, Zhejiang has the most bankrupt enterprises, reaching 10, followed by Hunan, Jiangsu, Guangdong, Anhui, Shaanxi and other provinces. This number is not much different from the previous two years, as a comparison, in the first half of 2022, there were 40 bankruptcy companies, and the data from January to October 2021 was 52.

In addition, with the development trend of the real estate market, the stock market will become the future “main battlefield”. Although the real estate market has shown signs of recovery this year, it is difficult to return to the peak. The executive meeting of The State Council held on June 29 reviewed and adopted the “Several measures to promote household consumption”, which emphasized the importance of coordinating and coordinating policies to promote household consumption with the transformation of old residential areas, the renovation of residential aging, the construction of convenient living circles, and the improvement of waste materials recycling networks. It can be predicted that the stock market will become the main battlefield of home furnishing enterprises in the future, and trends such as intelligent and secondary decoration will also become the support point for home furnishing enterprises to achieve sustained growth.

In general, the correlation between the real estate market and the decoration industry may gradually weaken, and the stock market will become the main battlefield for future development. In this process, trends such as intelligence and secondary decoration will provide continued growth support for decoration enterprises.