Coatings market is stable, the dilemma of "weak demand" is difficult to solve

It is an indisputable fact that rents in paint stores have risen rapidly in recent years. Last year, rent increases in building materials stores swept from the beginning of the year to the end of the year. The information sent back by the stations in various sales areas shows that the rent increases in first-tier cities such as Beijing and Shanghai are not large this year. However, building materials stores such as Xi'an, Changsha, Kunming, and Yueyang have all increased rents, and the increase in different stores in the same area is not the same. all the same.

The market is stable and the dilemma of "weak demand" is difficult to solve
According to the survey, the introduction of favorable policies such as interest rate cuts and fine-tuning of local property market policies has added confidence to the market, but downstream demand is still weak, and it will take time for favorable policies to improve demand. The national building materials spot market continues to run smoothly. Most of the market quotations in Shanghai, Beijing, Tianjin, Guangzhou, etc. are flat. At present, the market demand is weakening. This series of situations is reflected in the paint market, which is a tepid and cold situation in the first half of the year. In the survey, it was found that this situation seems to have been expected by the merchants. The distance between the favorable policies and the market has been extended. Many merchants use the off-season to upgrade and rectify their stores and train employees.

As far as the Beijing market is concerned, due to the unsatisfactory market conditions, the overall sales are still weak, and the increase is even less motivated. If the national economic policy stimulus and the promotion of manufacturers are not strong enough, the current market pattern will continue. Some merchants in Shanghai, Tianjin, Guangzhou and other places also reported that the rigid demand for real estate is far from the ideal state, the terminal sales and consumption power of coatings is low, and the dilemma of weak demand continues.

Rising costs and operating pressures continue to increase
Under the predicament of weak demand, the operating cost of enterprises is still strong. During the visit, it was found that the main reasons for pushing up operating costs are: first, the increase in the rent of the stores; second, the increase in the wages of employees; and third, the disorderly expansion of the stores.

It is an indisputable fact that rents in paint stores have risen rapidly in recent years. Last year, rent increases in building materials stores swept from the beginning of the year to the end of the year. The information sent back by the stations in various sales areas shows that the rent increases in first-tier cities such as Beijing and Shanghai are not large this year. However, building materials stores such as Xi'an, Changsha, Kunming, and Yueyang have all increased rents, and the increase in different stores in the same area is not the same. all the same.

Rent is the main reason for the increase in operating costs, and another important reason is the cost of employee wages. At present, China has begun to enter the era of high wages. With inflation and the improvement of dealers' requirements for the quality of employees, labor wages are increasing significantly.

The disorderly expansion of hypermarkets is also an important factor for rising operating costs. At present, the volume of building materials stores in many cities is close to saturation, or even in excess. For merchants, not only does the cost of opening stores increase, but if the store is not well managed, resulting in the closure of the store, the merchant will also bear high losses.