Renovation "full line" price increase! Why is the number of decoration companies dropping off a cliff?

　　Since the beginning of this year, affected by the price increase of various raw materials such as cement, wood, copper and aluminum, the cost of home decoration has continued to rise. How much has it increased? Will everyone's decoration budget rise significantly?

Shanghai: Home renovation costs are rising 　

Material prices generally rise by one to two percent

　　Ms. Chen from Shanghai bought a new house in Pudong in 2019 and delivered it at the end of this year, so she has been paying attention to the decoration market since the beginning of the year.

She told reporters that fortunately, a part of the decoration plan was set in the first half of the year, otherwise the budget will have to increase more, because this year's materials have risen sharply, from the floor to the wardrobe, from the bathroom to the aluminum alloy doors and windows, the prices have been rising.

Shanghai citizen Ms. Chen:

I saw this cabinet in May. It was 1,000 yuan per square meter at first, but it has risen to 1,300 yuan in the past two months.

The same brand, the floor and tiles I look at, are also increasing in price.

　　In many decoration material stores in Shanghai, dealers told reporters that there were mainly two increases in the price of decoration materials this year, once in May and once in November. Due to the price increase of various raw materials, their products can only increase accordingly. , Sometimes one price per day.

Cao

Zhonghong, the

This year's aluminum and glass growth rate is about 20 to 30%. Our overall cost should be about the same as that. The overall increase in finished windows this year is about 20% to 30%.

Huang Yuxiu, person in charge of a wooden door dealer in Shanghai:

Like this door, you can buy it for 2880 yuan last year, and it will cost 3280 yuan this year.

Because raw materials have also risen, labor costs have also risen, an average increase of 15% over last year.

　　The reporter visited a number of decoration companies in Shanghai, and a person in charge told the reporter that according to their suppliers' quotations, in the past six months, in terms of auxiliary materials, cement sand rose by 35%-40%, and electric wires and water pipes by 30%- 35%; in terms of main materials, ceramic tiles rose by 8%-25%, mattresses, shower rooms, and sanitary ware also rose by 5% to 10%, and wardrobes rose by about 15%.

Therefore, the overall decoration price is indeed rising.

Decoration becomes a trend of transparency

Industry concentration will increase

　　From the current point of view, the increase in the price of decoration materials this year is indeed not small. So what are the main reasons behind this? Will it continue to rise in the future? How does the entire decoration industry respond?

　　Steel Union data shows that compared with the same period last year, the average price of various decoration materials has increased. For example, cement rose by 17%, aluminum alloy rose by 17%, stainless steel rose by about 30%, blockboard rose by about 5%, and imported teak rose. About 25%, glass once rose by 50%, but now it has fallen.

　　According to industry insiders, the price increase of raw materials superimposed on the restriction of production and electricity in various places has pushed up the current cost of decoration.

Tang Zihua, general manager of the Shanghai operation center of a decoration company:

The price of labor will definitely continue to rise, and the price of raw materials will hardly fall, and the price of later decoration will certainly rise slowly.

　　In response to the increase in the price of decoration materials, several decoration companies have stated that it is now necessary to make the entire decoration process transparent and price transparent, so that customers and manufacturers can directly connect, and use centralized procurement to reduce costs. Centralized procurement and transparency have become Industry Trends.

　　Since the beginning of this year, real estate regulation has caused a significant decline in the transaction volume of second-hand housing, which has also had a certain impact on the decoration industry.

Industry insiders said that at this time, large companies have cost advantages, but small-scale and weakly competitive companies may be eliminated.

Tan Zhihua, vice chairman of the Shanghai Interior Decoration Industry Association:

Shanghai used to have more than 20,000 decoration companies at its peak, but there may be only a few hundred now, and there may be fewer in the future.

　　From the perspective of the A-share market, companies engaged in the construction and decoration industry generally have a low market value.

Gold Mantis ranked first with 15.17 billion yuan, followed by Yaxia, Jangho, Bauing and Zhongzhuang Construction ranked second to fifth.

Due to factors such as real estate regulation and raw material price increases, the gross profit margins of four of the top five companies in the third quarter of this year fell year-on-year.

On the whole, competition among enterprises is intensifying, and industry concentration will further increase in the future.