The rental cost of the store is higher than the cost of furniture, which accounts for more than 30% of the furniture price.

"Manufacturers, sellers, owners, hypermarkets, the interests of the four parties, one party does not make money, there will be bullies." Da Vinci home high-priced fake sale incidents let everyone understand the huge profits behind the high price of the furniture industry. Yesterday, at the first home summit of Alibaba, Jiang Hongyuan, president of Zhejiang Furniture Association, unveiled the inside story of the industry, saying that the biggest problem existing in furniture stores is the high operating cost and the rental cost of the store exceeds 30%. The furniture store rent is higher than the cost. “The Da Vinci incident has cast a shadow over the furniture industry.” Yesterday morning, Jiang Hongyuan, the president of the Zhejiang Furniture Association, who was the guest of Alibaba’s first home summit, took the stage and immediately denounced the most in the industry. Concerned about the high price of Da Vinci home sales. "If you defraud consumers, it is equal to the business to dig the grave." Jiang Hongyuan said that brand-name stores like Da Vinci home can be faked, and the integrity has obviously been pushed to the corner. Face-to-face sales models are likely to buy fakes, sell furniture on the Internet, how to be honest, it is worthwhile to think about thousands of e-commerce furniture vendors on the field. At present, many furniture brands are stationed in furniture stores for sale. Jiang Hongyuan believes that in this marketing model, whether the furniture store business is doing well depends on whether the interests of producers, sellers, owners, and hypermarkets can form a community. If one of the parties does not make money, it is easy to have a hammer sale. Jiang Hongyuan also pointed out that there has been an imbalance in the interests of the four parties in the furniture store, that is, the operating costs of furniture stores are high. For example, he said that in Beijing, the annual rent of furniture stores is as high as six or seven thousand yuan per square meter. The rental price of furniture stores in Hangzhou is between 1,500 yuan and 2,000 yuan. “This price is enough for building.” 30% of sales are store rents. Jiang Hongyuan said that in Europe and the United States, the rental cost of furniture stores is 10% to 20%, but the domestic situation is 30% or even higher. What is the situation of the Hangzhou furniture store? The reporter interviewed some furniture sellers. Liantianhong (Fujian) Furniture Co., Ltd., which specializes in mahogany furniture, has stores in Hangzhou Ouyada, East China Furniture City and Ningbo Sixth Space. The company's Zhejiang District Manager Huang Ligang told reporters that according to the location of the store, the floor of the store, etc., the store rent is high or low. The rent per square meter is two to three hundred yuan per month, and the general price is about 80 yuan. The location is slightly more than fifty or sixty yuan. Manager Huang revealed that store rents accounted for a large proportion of its cost, about 50%. In the New Times Furniture Market in Chengxi, Ms. Pan, a salesman who manages mattresses, told reporters that her store has 180 square meters and the rent is about 140 yuan per square meter per month. Ms. Pan said that the annual rent is about 30% of the annual sales. She said that the rent is already very high, and it will continue to rise, which is a big burden. She said that rent is a factor that affects furniture prices. Furniture manufacturers have transformed "touch the net" Jiang Hongyuan said that the home market is very large. The major furniture producing countries are China, Germany, Italy and the United States. The first in production is China. In China, the largest output of furniture is in Guangdong, followed by Zhejiang. At present, domestic furniture sales reached 870 billion yuan, and this year it is estimated to exceed 1 trillion yuan. China’s furniture exports reached US$33.7 billion, of which Zhejiang’s exports of furniture reached US$7 billion. "From the point of view of sales, in a few years, the home industry must catch up with the automotive industry." But high rents, difficult distribution, lack of integrity, poor service, and more and more trouble the furniture industry under the traditional sales model, some furniture manufacturers have Transformation "touch the net." At the summit, a new type of furniture e-commerce model is eye-catching. Li Lina, a senior expert at Alibaba Research Center, said that some companies are now able to customize furniture through the Internet. Consumers log on to their websites, choose the type of their own real estate, choose furniture on the computer according to their preferences, including style, color, size, material and so on. After that, the manufacturer will produce custom-made furniture according to the barcode left in the computer, and the distribution will be installed at home. According to industry insiders, furniture manufacturers moving from hypermarkets to online stores can save the intermediate links of traditional sales channels, reduce high costs, and increase the transparency of integrity management. This is a new trend in the development of the furniture industry in the future.

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