Home textile business double promotion

Business promotions for winter products business opportunities in the Ocean Department Store in Zhongshan, almost all brands of home textile products are in price promotions, price war smell is very strong. Among them, Fu Anna, Bo Yang furniture played full 200 back to 200 signs, some brand products even as low as 3-5 fold, there are packages to send pillows and other concessions. In the Mengjie Home Textile Youth Road store, the original price of 2,978 yuan on the bed printing four sets, now only 1888 yuan to buy.

The reporter found that online business promotion activities are also varied. The original price of 1,580 yuan in four sets of Fu Anna bed straight down 1,023 yuan, Breguet home textile cotton mattresses from the original 1231 yuan to 459 yuan. Some businesses also played the slogan of "cold weather, price" and some products as low as 34 yuan.

"Each year at the end of the year, there will be a wave of larger seasonal promotions." A brand store business told reporters that the difference is that this year's promotion time has become very long, and efforts are much larger than in previous years, "the market is not good, the end of the Clear your inventory."

Home textile companies seek to increase revenue through outlets. The reporter learned that due to the impact of real estate regulation and control, demand for consumer terminals in the home textile industry has been weakened, and pressure on channel inventory is high. The performance of many companies is not satisfactory.

On October 27, Mengjie Home Textiles released three quarterly reports. In the first three quarters of this year, the company’s net profit was 46 million yuan, which was a decrease of 28.7 percentage points. On October 29, Luolai Home Textiles reported that in the third quarter, from January to September, the company’s net profit was 253 million yuan, a year-on-year decrease of 9.64%.

At present, the problems facing the home textile industry are mainly in inventory. The third quarterly report shows that the inventory of Luolai Home Textiles was 684 million yuan, an increase of 32.35% compared with the beginning of the year, and the inventory of Mengjie Home Textiles was 518 million yuan, an increase of 37.51% compared with the beginning of the year; while Fuanna was the only inventory reduction, it fell 11.07% from the beginning of the year to 460 million yuan.

According to industry insiders, in addition to the economic downturn and real estate impacts, the enterprises are investing a lot of resources to fight online share and use profits for space is also one of the important reasons.

In order to survive the industry downturn, companies began looking for ways to increase revenue. On September 27, Fu Anna announced that the company will use 50 million yuan to buy Industrial Bank's one-year financial products; and Luolai Home Textile also announced on October 18 that the company contributed 50 million yuan to the Xiamen Branch of Xiamen International Bank. Purchased bank wealth management products.