The price war will not only reduce the profit space of the cabinets, but will also make consumers have doubts about the quality of products. Excessive "price wars" will cause the entire market to fall into chaos, and the real way to survive lies in brand building. As the saying goes, good shade under the big tree and increased brand building efforts can help the company's marketing.
In 2011, the pan-family industry could be said to be “caught in survival†due to the downturn in the property market, the cooling of the market, rising rents, and price increases of raw materials. Experts predict that in the next year and a half, with the further cooling of the real estate market, China's pan-home industry will face a difficult "winter". How do cabinet companies survive and how can they withstand the "winter"? Expansion or stick? Opportunity or trap?
Under heavy pressure, the market was deserted. The author conducted in-depth investigations in five home stores in Shenzhen, such as five-storey home stores, home and home boutique decoration, Bagua Ling Guoanju and Bagua Lingle homes.
The survey shows that the vast majority of building materials stores in Shenzhen are affected by the property market, and sales have dropped significantly from last year. Among them, the Baoan building materials market is the most deserted, only the building materials market between Bagua Ling and Tianbei Road because of the arrival of Hong Kong passengers, so the traffic is relatively large, in the traditional "golden nine silver ten" season, although many cabinet shops All of them have prominent promotional billboards, but they are still very small.
In view of the current situation of accelerated expansion of stores and fierce market competition, many businesses have stated that the intervention of new stores and new brands has diluted the profits of enterprises and distributors, and business is increasingly difficult to do. On the other hand, as prices continue to rise and store rentals increase year by year, dealers feel the pressure to survive and companies are difficult to grow.
At the same time, more and more competitors such as household appliances, furniture, sanitary ware, and tile giants have joined the cabinet industry, and the number of terminal cabinets has increased. From small shops to big stores, big stores to multiple stores, and from street stores to hypermarkets Concentration, from product competition to brand competition. All this means that the relatively high profits of the cabinet industry, has now plunged into the quagmire of price war.
Enterprises and distributors must understand the truth that the inevitable result of price warfare is to "kill one enemy and smash eight hundred." Under the pressure of the market, in order to get rid of the predicament, it is the absolute principle of the development of the enterprise that only the value of the product is increased and the value is the victory.
Strictly control the quality and resist the "cold stream"
Recently, there have been more and more quality-related scandals in the home industry. The previous "Da Vinci Incident" was not resolved and the "Shenzhen and Qingdao Red Star McLaren's sale of counterfeit events" made a big stir. Suffered from consumer questions, facing a round of confidence crisis.
When the author visited the market, he learned that when consumers buy products, they will buy brand products with high spending power, while those with less spending power will be eager to purchase inexpensive products. The “good thing†means good quality. Many consumers even stated that they sometimes prefer to spend a little more money to buy a better one, quality assurance can be used with peace of mind, poor quality replacement cycle is short, and more money is actually wasted.
Considering the crisis of confidence that appears in the market today, cabinet companies must also strengthen the quality of their own products. From the time the materials are purchased to the final shipment, every link must be closed. Only by selling the best quality products to consumers will the trust be maximized. Only in this way can companies gradually expand their influence and establish a corporate brand image.
Accurate positioning, seizing the mainstream consumer groups in the expansion of high-end brand home chain stores, while the brand-name hypermarket products are also followed by the "gold package" uplift. According to the survey, only 9% of high-end consumer groups in China, while the remaining 91% of customers can not afford to consume high-end home products. Therefore, some mid-range, affordable, and affordable stores are still blank in the home industry.
The consumption potential of the mid-range market is huge. Cabinet makers should not overlook 91% of the mainstream market in order to squeeze into the 9% group.
Brand building is still a breakthrough, and more and more distributors are realizing that blind price war will not only reduce the profit space of cabinets, but also make consumers have doubts about product quality. Excessive “price war†will make the whole The market is in chaos, and the real way to survive lies in brand building. As the saying goes, good shade under the big tree and increased brand building efforts can help distributors' marketing.
For consumers, they will first choose the brand products when they go to shop to buy cabinet products. Therefore, they must give consumers the opportunity to first understand their brands or give priority to their brands. At the same time, brand building still needs to be implemented into the sales terminal, because the consumer finally chooses to purchase, but also needs the dealer to complete the follow-up work. Some dealers are careless about the hardware of their stores, and they do not attach importance to software construction. The brand is just an “empty shell†for them. Even if the name of a company or brand is louder, the results may not be as good as those of small brands.
Since April of this year, the State Council and the Ministry of Housing and Urban-Rural Development have issued a series of new real estate policies. Regulations have also been issued in various parts of the country. The cooling of the property market has caused concern in the home industry. However, the purpose of policy regulation is to “squeeze bubbles†rather than “freeze demandâ€, and people’s rigid demand for housing still exists.
Wen Shiping, a member of the Wenzhou Think Tank and a renowned economist at Shenzhen University, analyzed that in the next year and a half, the real estate industry price is expected to decline sharply, and the housing industry is expected to pick up, and the demand for homes will also expand.
Natural way, the four seasons cycle, cabinet companies and dealers only face a variable market with more professional and more mature thinking, turn "crisis" as "opportunity", can withstand the "winter" and usher in the next "spring" .
In 2011, the pan-family industry could be said to be “caught in survival†due to the downturn in the property market, the cooling of the market, rising rents, and price increases of raw materials. Experts predict that in the next year and a half, with the further cooling of the real estate market, China's pan-home industry will face a difficult "winter". How do cabinet companies survive and how can they withstand the "winter"? Expansion or stick? Opportunity or trap?
Under heavy pressure, the market was deserted. The author conducted in-depth investigations in five home stores in Shenzhen, such as five-storey home stores, home and home boutique decoration, Bagua Ling Guoanju and Bagua Lingle homes.
The survey shows that the vast majority of building materials stores in Shenzhen are affected by the property market, and sales have dropped significantly from last year. Among them, the Baoan building materials market is the most deserted, only the building materials market between Bagua Ling and Tianbei Road because of the arrival of Hong Kong passengers, so the traffic is relatively large, in the traditional "golden nine silver ten" season, although many cabinet shops All of them have prominent promotional billboards, but they are still very small.
In view of the current situation of accelerated expansion of stores and fierce market competition, many businesses have stated that the intervention of new stores and new brands has diluted the profits of enterprises and distributors, and business is increasingly difficult to do. On the other hand, as prices continue to rise and store rentals increase year by year, dealers feel the pressure to survive and companies are difficult to grow.
At the same time, more and more competitors such as household appliances, furniture, sanitary ware, and tile giants have joined the cabinet industry, and the number of terminal cabinets has increased. From small shops to big stores, big stores to multiple stores, and from street stores to hypermarkets Concentration, from product competition to brand competition. All this means that the relatively high profits of the cabinet industry, has now plunged into the quagmire of price war.
Enterprises and distributors must understand the truth that the inevitable result of price warfare is to "kill one enemy and smash eight hundred." Under the pressure of the market, in order to get rid of the predicament, it is the absolute principle of the development of the enterprise that only the value of the product is increased and the value is the victory.
Strictly control the quality and resist the "cold stream"
Recently, there have been more and more quality-related scandals in the home industry. The previous "Da Vinci Incident" was not resolved and the "Shenzhen and Qingdao Red Star McLaren's sale of counterfeit events" made a big stir. Suffered from consumer questions, facing a round of confidence crisis.
When the author visited the market, he learned that when consumers buy products, they will buy brand products with high spending power, while those with less spending power will be eager to purchase inexpensive products. The “good thing†means good quality. Many consumers even stated that they sometimes prefer to spend a little more money to buy a better one, quality assurance can be used with peace of mind, poor quality replacement cycle is short, and more money is actually wasted.
Considering the crisis of confidence that appears in the market today, cabinet companies must also strengthen the quality of their own products. From the time the materials are purchased to the final shipment, every link must be closed. Only by selling the best quality products to consumers will the trust be maximized. Only in this way can companies gradually expand their influence and establish a corporate brand image.
Accurate positioning, seizing the mainstream consumer groups in the expansion of high-end brand home chain stores, while the brand-name hypermarket products are also followed by the "gold package" uplift. According to the survey, only 9% of high-end consumer groups in China, while the remaining 91% of customers can not afford to consume high-end home products. Therefore, some mid-range, affordable, and affordable stores are still blank in the home industry.
The consumption potential of the mid-range market is huge. Cabinet makers should not overlook 91% of the mainstream market in order to squeeze into the 9% group.
Brand building is still a breakthrough, and more and more distributors are realizing that blind price war will not only reduce the profit space of cabinets, but also make consumers have doubts about product quality. Excessive “price war†will make the whole The market is in chaos, and the real way to survive lies in brand building. As the saying goes, good shade under the big tree and increased brand building efforts can help distributors' marketing.
For consumers, they will first choose the brand products when they go to shop to buy cabinet products. Therefore, they must give consumers the opportunity to first understand their brands or give priority to their brands. At the same time, brand building still needs to be implemented into the sales terminal, because the consumer finally chooses to purchase, but also needs the dealer to complete the follow-up work. Some dealers are careless about the hardware of their stores, and they do not attach importance to software construction. The brand is just an “empty shell†for them. Even if the name of a company or brand is louder, the results may not be as good as those of small brands.
Since April of this year, the State Council and the Ministry of Housing and Urban-Rural Development have issued a series of new real estate policies. Regulations have also been issued in various parts of the country. The cooling of the property market has caused concern in the home industry. However, the purpose of policy regulation is to “squeeze bubbles†rather than “freeze demandâ€, and people’s rigid demand for housing still exists.
Wen Shiping, a member of the Wenzhou Think Tank and a renowned economist at Shenzhen University, analyzed that in the next year and a half, the real estate industry price is expected to decline sharply, and the housing industry is expected to pick up, and the demand for homes will also expand.
Natural way, the four seasons cycle, cabinet companies and dealers only face a variable market with more professional and more mature thinking, turn "crisis" as "opportunity", can withstand the "winter" and usher in the next "spring" .
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