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Home store expansion situation does not reduce the pressure on the operating pressure of cabinet businesses
In just a few years, the number of home stores has doubled, and this trend continues to grow. This development is directly and deeply impacting cabinet companies that rely heavily on these retail channels for sales. The expansion of home stores is not easing the pressure on cabinet businesses; instead, it’s creating new challenges.
The pace of home store development has outstripped market demand. This year, the real estate industry has shown signs of weakness, and the downstream home improvement sector has been affected as well. As the saying goes, "When the real estate market cools down, the home improvement market catches a cold." For home stores, this means they’re not only competing with each other but also struggling against a challenging economic environment.
For the entire home industry, new stores are opening rapidly, far outpacing the ability of the market to absorb them. Market saturation is becoming a reality, and with it come inevitable problems. While full competition can drive innovation, the question remains: can the market sustain so many new stores? And who will bear the cost of this expansion? These are concerns that cabinet companies must seriously consider as they navigate this evolving landscape.
Cabinet operators are facing a tight environment, which poses significant challenges for store management. Should they pass on rising costs to consumers? While poor management may be a factor in some cases, even major home stores are not immune to these pressures. Cabinet retailers, in particular, are under immense strain. Alongside external market pressures, high rent, multiple brands, and chaotic competition within the stores add to their difficulties.
Some cabinet operators report that the cost of running a store has increased significantly—rent, labor, and store decoration all contribute to the burden. To maintain profitability, many are forced to pass these rising costs onto consumers. However, this creates a dilemma: if prices go up, customers may hesitate to buy. But if prices stay low, businesses risk operating at a loss. A business that isn’t profitable isn’t sustainable.
To overcome these challenges, cabinet companies need to focus on improving efficiency and optimizing their technical processes. Innovation, better resource management, and strategic planning are essential for long-term success in this competitive market.