Explore The Reasons For "Slump" In Home Textile Market This Year

The first two quarters of 2012

It can be said that both are faced with huge sales difficulties, and sales performance has generally declined, which has brought a lot of pressure to home textile manufacturers.

The specific reasons for this year's bad market environment are due to the international and domestic economic situation.

The specific reasons are:

(1) the international economic situation is not optimistic.

In 2012, the European debt crisis intensified, the US economic recovery was weak, and the downside risks of the world economy gradually increased. The situation faced by emerging markets and developing countries in macroeconomic regulation and control was more complex and difficult to control.

World economic growth slows down, international trade growth slows down, all kinds of risks increase significantly, market confidence decreases, and the world economy will remain depressed for a long time. 2012 will be a challenging year for the world economy.

(2) the domestic economic situation is slowing down.

In December 2011, the central economic work conference confirmed that the overall keynote of economic work in 2012 was "steady progress," and continued to implement the "proactive fiscal policy" and "prudent monetary policy".

Although China's economic growth rate is expected to maintain reasonable growth throughout the year, price inflation will gradually drop, but China's economic development still faces many challenges and uncertainties.

In particular, the risk of comprehensive inflation, the breakdown of the real estate bubble and the collapse of the local financing platform bring greater uncertainty to the domestic economic operation and ultimately restrict domestic consumption demand.

(3) because of the complexity of the company's operation system and the trend of price increase, the cost of the first tier brand home textile companies has risen sharply, and the cost of products has been increased again and again, resulting in the terminal retail price being separated from the regional consumption capacity.

With the pformation and development of the national economic structure, residents' consumption is becoming more and more cautious, and the sales of home textile stores are becoming increasingly dismal, which directly leads to the extreme situation of the company's sales revenue showing a slowing down or even slowing down, which directly increases the operational risk and business pressure of the company and franchisees.