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Facing the "Golden September and Silver 10"
"Golden September and Silver October" has arrived, marking a crucial period for the home furnishing industry. After a challenging first half of the year due to the downturn in the real estate market, the building materials and home decor sector is now looking to bounce back. This season is seen as the key battleground for companies aiming to boost sales and set the tone for their annual performance. The success of "Golden September and Silver October" could significantly impact the overall results of the industry this year.
The competition is intensifying. As a downstream sector of real estate, home stores and renovation companies have faced significant challenges. Many sub-sectors have experienced a stagnation with rising costs, commonly referred to as "stagflation." In response, major home furnishing companies have been actively implementing self-rescue strategies, including frequent store promotions, creative marketing campaigns, and product repositioning. With the arrival of "Golden September and Silver October," the home industry is treating it as the most important event of 2014, preparing for what is expected to be the most aggressive and impactful marketing season yet.
In 2014, the residential market remained uncertain, with both new and second-hand housing transactions declining by nearly 50% year-on-year. From property to home furnishings, there's often a lag in the industry chain. By May and June, the home market had already begun to show signs of depreciation. According to the national Building Materials and Household Prosperity Index (BHI), the index dropped year-on-year after June. However, data from July showed that sales of building materials above designated size reached 106.27 billion yuan, up 3.74% from the previous month, indicating a slight recovery.
Given this environment, the "Golden September and Silver October" promotion season is more critical than ever. It's not only a vital time for major retailers to boost sales and meet year-end targets, but also a strategic point for competitive advantage in a shrinking market.
Early preparations have already begun. Traditionally, discounts and promotions are the go-to tactics for attracting consumers. However, brands are now exploring more creative ways to engage customers, such as immersive brand experiences. For example, the upcoming "Italian Week" event will bring consumers into the North Fourth Ring Store through interactive activities like brand visits and tastings, helping them connect with the brand’s story and values. Meanwhile, Jimei Home is launching an experience center that blends physical and digital shopping experiences to enhance customer engagement.
Many companies are also focusing on long-term marketing effects. Red Star Macalline, for instance, launched a special event in August called the "National First 100 City Holiday Banquet," which created a frenzy among consumers. The event was part of the company's strategy to enter the "100-city era," and with the opening of its Enshi Shopping Mall, it is set to break the 100-city mark, setting a new benchmark in the home retail industry.
Beyond expanding its reach, Red Star Macalline aims to establish the "night banquet" as a signature promotional event, similar to the "two-day" promotions in March. Industry experts believe that while many companies have experimented with night markets, Red Star Macalline's approach is more strategic and brand-focused.
In the current flat market, small innovations are becoming more common. Whether it's the "night banquet" concept or designer-led services, these approaches aim to provide fresh experiences and better service for consumers.
However, the "Golden September and Silver October" season also comes with concerns. Industry leaders expect a potential decline in quality and increased pressure on the market. Consumers are becoming more selective, demanding higher standards from brands. While promotions can drive short-term sales, blind price cuts may harm brand image and alienate loyal customers. Instead, targeted services and personalized solutions are seen as more sustainable strategies.
For instance, some high-end brands are focusing on luxury pavilions and customized furniture, appealing to affluent and individualistic consumers. Combining online and offline experiences allows designers to directly engage with customers, creating a more tailored shopping journey.
Additionally, the concept of "product is king" remains strong. With growing awareness of environmental protection and health, products that offer superior quality and stricter safety standards are gaining popularity, especially in the high-end segment.
Overall, "Golden September and Silver October" represents both a challenge and an opportunity for the home furnishings industry. Companies must balance aggressive marketing with long-term brand value, ensuring they not only capture attention but also build lasting relationships with consumers.