China's Evolving Home Improvement Market (DIY & DIFY)

I took an interesting trip to China not long ago and spent some time browsing through home improvement stores. Dynamic would be an understatement to describe what's really going on in China. What's more interesting is that after B&Q successfully acquired OBI China, it becomes the number one warehouse style DIY retailer in China and put tremendous pressure on new players like HomeDepot and Lowe's. Even though a couple of me-too domestic DIY retailers are suitable for M&A, but to integrate them into a money making business is more than just money and vision can provide.

On one hand, some people may claim that Chinese Home Improvement Shoppers are not sophisticated and thus need PR and marketing efforts to educate them. People with this kind of thinking are generally frustrated with unsuccessful initiatives. But squarely blaming Chinese consumers for lacking of something to buy what you have to offer is not going to make them more willing to do business with you neither. What I can assure you is that they will be shy away from any future visit to your store or engagement with you since the thinking itself violates the rule number one when doing business in China: be sincere and adaptive.

One the other hand, retailers must undertake some transformations to change from a pure distributor role to a trusted life-style management service provider. The up-cross-etc sales techniques used by international and domestic DIY/DIFY retailers are to the most a gasping effort to "squeeze" consumers' wallet. As a matter of fact, such intention is so obvious that most consumers HAVE to shop around to find the best deals. The problem is that everything is based on price competition not on a general theme that consumers can rely on to willingly spent money. Of course, the underline substance of the theme is TRUST. How to make it happen? Many many ways.

I am not trying to spoil the party by poring cold water around. As a matter of fact, if you go to China and visit Home improvement stores, you will see the excitement and modernization trend. However, to predit how B&Q, HomeMart, OrientHome, Homedepot, Lowe's etc. are going to battle each other and take the king/queen position, one has to consider how much effort each has put in to become tomorrow, not yesterday. For that, who is leading and executing are very important, and we would not know much about that, or do we?

Following are some pics I shot to share with you all here: