Floor Industry Industry Chain Enters Adjusting Period

In addition to the cooling of the fiery property market, the property control policy in 2012 has also affected the building materials industry, and has thus entered the adjustment period. Many home store counters are vacant, and dealers and manufacturers are complaining. Some industry experts conducted the following analysis of the brother's part of the flooring industry chain:

The difficulties of small and medium-sized enterprises: low profits, difficulties in attracting investment in small and medium-sized flooring companies, and low brand added value. The added value of the brand depends on the company's reputation, reputation, product quality, appearance design, reputation, and comprehensive service quality. Small and medium floor companies have obvious shortcomings in these areas.

In the flooring industry, SMEs are more difficult to attract businesses than large companies, and franchisees have lower quality and higher turnover rates. Due to the small scale of SMEs, the lack of stable product quality and the limited product range, it is difficult to attract more powerful dealers.

At this year's exhibition of home building materials industry, a new floor of the company introduced a new appearance, environmental protection materials, advanced technology, reasonable prices, access to a large number of dealers concerned. But when dealers visited the factory, they saw empty factories, sparse workers, and less raw materials. This kind of scene has deterred many enthusiastic dealers, and the scale of the company dragged on to exhibitors.

The enterprise's difficulties: limited business model, insufficient order volume, and fierce competition In the field of architectural decoration where personalized products are popular, the trend of small batches and batches has become increasingly apparent. Under the background of individuation and new products, the form of intensive, large-scale, standardized production organization is no longer the advantage of the enterprise, but it restricts the adaptability of the enterprise to the market. “It is difficult for the ship to turn around,” and it has been difficult to change the systems and production organization forms that have been formed over the years. The traditional flooring companies integrating production and marketing have been slow to develop in recent years.

After years of development and accumulation, large-scale plant equipment and relatively fixed fixed expenses forced large floor companies to have a large number of stable orders to go. Some large floor companies passively choose to cooperate with some large real estate companies in order to ease the contradiction between production capacity and lack of orders. However, in cooperation with real estate companies, companies will be plagued by problems such as low profit margins, long collection periods, high inventory pressures, difficulties in liquidity, and other uncertainties in the ever-changing real estate market.

Due to the low technical barriers and capital barriers, the flooring industry has emerged thousands of SMEs in just a few short years. The impact of the scale and speed of development of small and medium-sized enterprises on traditional large enterprises cannot be ignored.

The dilemma of merchants: The expansion of stores, unsatisfactory partners, increased costs, and the proliferation of home building materials, such as market risks, are the biggest problems that plagued businesses.

The total amount of the market is relatively stable, and the ever-increasing or even multiplication of the stores means that the limited market share will be further divided. At the same time, new stores also make dealers dilemma. Entering will not bring about a multiple growth in sales, but it will also bring huge expenses; if not, dealers will worry about losing business opportunities.

Dealers have a dilemma when choosing a cooperating manufacturer. The response of traditional large companies to market demand is generally slow. For example, a well-known brand enterprise cannot timely introduce white mixed oil and open paint products with a relatively high market demand, causing its dealers to lose business opportunities; Stability, lack of brand influence, even if distributors are satisfied with product quality, delivery speed, price, service attitude, etc., dare not dare to cooperate with it.

Intense market competition has increased the cost of sales. Smaller distributors cannot afford to spend on advertising, various promotions, team building and training.

The industry boundaries are gradually being broken down, and new market conditions and new business models have brought dealers a more severe test. In recent years, major brands such as Iconography, Europa, and Nature have been involved in the flooring industry and put forward the business philosophy of whole wood and home, gradually breaking the industry segmentation and placing higher requirements on distributors.

Difficulties in the store: Inaccurate positioning, reduced number of profitable merchants, and increased number of independent stores The profits of most stores come from rents and management fees. They are not involved in the business operations, and are not responsible for the business operations. This mode of operation has increased the distance between the store and the merchant. Before the construction of many stores, they did not conduct scientific and detailed analysis of the total market volume, forward sales, and possible sales of merchants in the region. Due to inaccurate positioning, the situation resulted in a low traffic flow and dismal operation.

Business occupancy rate and profitable business ratio are the guarantee for the long-term survival of the store, but in most cities, especially in large and medium-sized cities and coastal developed cities, the excessive number of stores makes the ratio of profitable merchants and profitability of profitable merchants continue to decline. In this case, some of the more powerful businesses have chosen to stand out and open independent stores. They have more autonomy in the control of operating costs and the choice of business locations. Such as Shishi Fujian Shiyi building materials store is also a self-built independent shop. The store represented more than 50 household brands, including Run Cheng Chuang Floor, Danish wardrobe, Yajie Hardware, and David Floor. It also introduced a decoration company and realized an integrated operation. The development momentum of independent stores is not to be discounted by traditional model stores.