In recent years, the furniture hardware market in Guangzhou has experienced a noticeable decline. According to a report by a journalist, the total area of home building materials stores in Guangzhou exceeds 1 million square meters. With such a large number of stores competing fiercely across different regions, the market space for hardware dealers is shrinking, making it increasingly challenging to run a business.
In the Taipingsha area of Beijing Road in Guangzhou, there used to be hundreds of hardware businesses a few years ago. Today, only about 30 companies remain. Similarly, along Taikang Road, the number of hardware shops has dropped from over 100 to just 20. In recent years, many old buildings on Beijing Road and Taikang Road have been demolished, leading to a significant reduction in hardware stores. Once considered the best hardware store in Guangzhou, Taikang Decoration Materials City was located in the bustling Beijing Road Business Circle. It had an ideal location and a vibrant business atmosphere. However, with the rapid transformation of Guangzhou’s old city areas, the store was relocated to Jiangnanxi, now known as Xintaikang. The new location lacks the same level of customer loyalty and business activity that the original Taikang once enjoyed. Moreover, the new Xintaikang is a comprehensive store covering various building materials, with fewer dedicated hardware shops.
Another major decoration material store in Guangzhou, Tianjian, has operated for nearly a decade. Initially, it was a specialized hardware store focused on wholesale. During its peak years, thousands of hardware companies were based there, and the store was almost fully occupied. However, due to its location in Sha Tai Road, Baiyun District, which is relatively remote and not as popular, the store never reached the same level of success as others. Recently, the author visited Tianjian and found that hardware dealers have decreased by at least 40% since last year, with 20% of the stores either closed or posting closure notices. The B Hall of the store has been converted into a “Cabinet Pavilion,†housing wardrobe and cabinet companies, while the D Hall has become a logistics park, hosting logistics firms. It is expected that the number of hardware shops will continue to shrink.
Tianping Decoration City, located in Tianhe District, and South Bank Road Decoration Materials City in Liwan District are two other well-known building materials markets. Although they are comprehensive stores, their prime locations and long histories have helped them remain more prosperous than Tianjian.
As a first-tier city, Guangzhou has seen a slowdown in property transactions due to stricter real estate regulations, which has led to a sharp drop in demand for construction materials. According to Professor Jin Mo, a chief research associate at Jin Mo Building Materials Network, the market is oversupplied with too many hardware stores. It is estimated that around 30% of specialty stores may eventually be eliminated. Guangzhou is not a production hub for hardware, but rather a consumer market. Local manufacturers are becoming fewer, and it's difficult for downstream industries like furniture, cabinets, wardrobes, doors, and windows to source directly from nearby factories in Foshan, Zhongshan, and Gaoyao. Additionally, merchants have become more savvy. Through events like the Canton Fair, they can inspect specific hardware products and even visit factories in surrounding areas via the well-developed Pearl River Delta transportation network. As a result, many hardware companies no longer need to establish branches in Guangzhou.
According to industry research, there are thousands of lock dealers nationwide. Sales in primary and secondary markets have declined, while sales in tertiary markets have increased. This suggests that in the future, stores with good locations, strong brands, reputable distributors, or factory outlets will dominate the Guangzhou hardware market, capturing the majority of the wholesale and retail trade.
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