How China's flooring industry achieved breakthrough in 2012

January 16, 2019

The new year has arrived, the real estate control policy will continue, the cost will rise too fast, the trend of currency normalization will be uncertain... In the face of an unoptimistic external economic environment, how the flooring industry will break through, the author believes that The following points start.

Intensify product development efforts The serious homogeneity of products in the flooring industry is an indisputable fact. Enhancing the ability to innovate and develop specialty products is a magic weapon for companies to stand out from the crowd.

From the perspective of the international market, the floorboard industry in China accounts for 20% of the international market, but many low-priced products occupy the low-end market. A few days ago, the final result of the "double reverse" floor of the United States floor covering China over the past year has already been announced. China's composite flooring was eventually dumped as a dumping, and the Chinese floor companies' future exports to the United States would not be able to escape the doom of double taxation. In view of this, domestic flooring companies should increase investment in R&D and design, produce more market-competitive products, seize the high-end of the industrial chain, and rely on China to design Chinese ideas to win the international market.

Judging from the domestic market, the consumption capacity of the first and second tier cities has gradually become saturated, and the third and fourth tier cities are still promising. Therefore, under the premise of ensuring product quality, floor companies should vigorously research and develop low- and middle-priced products to meet the market consumption levels in the third and fourth-tier cities.

The slump in building a new type of vendor-relational market environment has affected the sales of products, and current pan-home dealers are generally uncomfortable. Cold, cold, dealers can not sell products, manufacturers also like to sit on the needle felt. Therefore, floor manufacturers should actively help and support distributors to achieve mutual benefit.

First of all, to establish a win-win concept, manufacturers and distributors must work together to achieve sales and profit goals, establish a habit of mutual help, adhere to the principle of balanced interests, mutual trust, mutual knowledge, mutual encouragement and mutual benefit. Second, formulate reasonable support policies and strengthen marketing support. Such as the development of product support policies, store decoration support policies, advertising support policies. Again, improve the service system and strengthen marketing promotion. For the flooring industry, the products given by manufacturers to dealers are only “semi-finished products” and require large service and work of the dealers in the later period. Therefore, manufacturers should give dealers effective service support.

Accelerating the sinking of channels Affected by the regulation and control policies of the property market, the first- and second-tier cities have seen a strong wait-and-see mood in the pan-home market. The over-capacity flooring industry has always felt strongly, and it has stepped up its sinking channels to the third- and fourth-tier markets with huge potential. At present, the development of flooring companies is a top priority.

According to Wang Xiaoyu, general manager of Marketing Department of Icon Group, the current iconographic floor encountered sales resistance in the first-tier cities. The most obvious feeling is that the product inventory is overstocked. Under this circumstance, the next step will be to speed up the distribution of cloth stores in the third and fourth tier cities to compensate for the deficit in product sales in tier one and tier two cities. This has also become the consensus of all brands of flooring companies.

Exerting advantages to become bigger and stronger Generally speaking, there are two different strategic models for enterprise development: “bigger and stronger” (diversified operation) and “doing specialization” (specialized operation). Which is more suitable for the development status of the floor companies? Which is the best path to a strong company? Today, people's consumer demand tends to be personalized and diversified. Diversification meets the needs of market development, while professional management, through rational and wide-ranging social division of labor, specializes in refining its own products, and creates competitive advantages through low cost and differentiation. It can also establish a foothold in the market and grow and expand.

For enterprises, the most important thing is to position them rationally, select the most suitable development model based on their own advantages, and stick to it from the beginning to the end. Whether "bigger and stronger" or "specialized", as long as it is conducive to the development of the enterprise, it is a good strategic model.

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