Analyze the differentiation and reintegration mode of cabinet industry

Some people say: Chengyi cabinet stores will also lose cabinets. Why the cabinet industry seems to confirm the socio-economic development trend, and can not proceed in the direction of a good direction. Instead, it has adopted differentiation and reintegration. The following three major trends illustrate the results.

Minister of Commerce Gao Hucheng stated that the growth rate of residents’ consumption accelerated month by month and presented four “faster than”: the growth of commodity consumption was faster than food and beverage, rural areas were faster than urban areas, and the internet was faster than entities. Non-durable consumer goods were faster than durable consumer goods but energy-saving. Smart home appliances, furniture and building materials will become the growth point of the consumer market in the second half of the year, and online shopping will also become a growth point. The Ministry of Commerce plans to introduce specific measures to further invigorate circulation and promote consumption, and to stimulate consumption of household appliances, cabinets, automobiles and other durable goods.

The Guangzhou Administration for Industry and Commerce plans to implement the "Contract for the Sale of Furniture". It is stipulated that the furniture-testing organizations approved by the State will detect that the limit of harmful substances in furniture does not meet the mandatory requirements of the relevant standards. The buyer has the right to return goods unconditionally and asks the seller to pay for the corresponding inspections. Fees, transportation fees, lost time, etc.

"Great Home"

“The financial crisis began to deepen in 2009. The entire cabinet industry is talking about the wolf, but the actual impact of the economic situation on the industry is not great, but since 2010, the impact of the property market regulation has gradually become obvious. By 2011, the cabinet industry can be said With the greatest pressure in 20 years, the decline in market demand, overcapacity in the industry, homogenization of products, and lack of innovation, internal and external problems have been compounded,” said Jiang Dehui, executive chairman of the Guangdong Provincial Furniture Industry Association and president of the Guangdong Furniture Industry Research Institute. “But it is precisely because of pressure that leads to change, companies will only think about improvement under pressure, and companies that do a good job of internal management and technological innovation have developed very well.”

The cabinet industry is facing various difficulties and there have been a variety of questions, but “big home” is still the dream of the industry. To extend the industrial chain and the sales chain as far as possible, the Red Star Macalon still does not implement the “100 Mall” plan. Abandon the commercial real estate model, and open up another way to build "intelligent" cabinet stores; and home improvement, home decoration has become an important part of the "big cabinet" model, Guangzhou's local good luck to come, Hongshu Bay, best cabinet as much as possible His own product line, in Shenzhen International Cabinet Accessories Exhibition, Shenzhen City Furniture Industry Association Executive Chairman Hou Kepeng believes that the traditional kitchen cabinet companies to expand the field of home decoration downstream of the industry chain, will be the next step for the development of Shenzhen cabinet companies a good choice, home one It is a major trend.

The advent of a large cabinet era will once again change the ecology of the cabinet industry. Qin Zhanxue, executive vice president of the China Building Materials Circulation Association, said that with the relative surplus of stores, there will be a phenomenon of “sucking gold”. The popularity of the service is good and the brand is hard. The more prosperous, the small and medium-sized stores with weak services and brands face great pressure for survival. Jiang Dehui predicts that some companies will win and become bigger and stronger. The demand for corporate branding will lead to large-brand independent stores, and new terminals such as cabinet cluster street and brand independent store cluster may emerge.

The "big league" prominence

“In-house people are optimistic about the future prospects of the cabinet industry. Many companies are inclined not to step on the brakes and only step on the accelerator. Contrary to the market situation, at least an additional 600,000 square meters of cabinets are being sold nationwide, showing excess situation. According to Zhao Long, chairman of Beijing Guofu vertical and horizontal, the future competition of the cabinet industry must be even more tragic. Nowadays, excess capacity in the manufacturing industry requires the search for platforms to digest products. This makes it possible for the expanded cabinets stores to exist for quite some time, but the cabinet stores The surplus will eventually induce the industry to reshuffle, resulting in some outstanding stores winning and expanding, and some stores will be shuffled out.

However, the operating mode of the existing cabinet stores has caused dissatisfaction with many brands of cabinets. First, the continuous increase in rents has increased the cost of sales; the second is the sales promotion of bundled stores and all of them, which has weakened the attractiveness of the brand; The opening of the store separates the profit from entering the business. Since two or three years ago, many brands of cabinets have adopted a “brand alliance” marketing approach to compete for generations and share resources. This year, Guangdong has also newly established a cabinet industry association to guide the integration of cabinets, building materials, and one-stop consumption. . The Guangzhou Champions League, which is composed of Europa, Dongpeng, and Nature, has held regular joint conferences. “This year, five large-scale promotions have been made, and each event will be given a different theme.” Champions League executive president, He Weirui, deputy general manager of Dongpeng (Guangzhou), introduced that through the alliance, sales of various brands have increased by more than 20%. Wang Weidongming, general manager of Nature (Guangzhou), said that the increase in the number of cabinet store stores is not proportional to the sales of goods, and sales per unit area are actually falling. The current situation is that in order to improve performance, it must grab a share from competitors and compete. The model will only become more cruel.

Jiang Dehui believes that since 2012, companies have become more and more popular in talking about brand awareness. This means that they have the intention to change, meet the challenges of the market, and have made progress in the branding of building materials. Furniture is not yet in size, there are few brand names, and there is no brand. It can account for 1% of the industry, and companies are becoming more and more aware of branding. Zhao Long said that the profitability of dealers that are most sensitive to the market is declining. According to incomplete statistics, the output per square meter of furniture stores fell by 30-35% year-on-year, and the growth rate of promotional activities increased by 40%.

"Big platform" force

The cabinet industry has undergone differentiation. First, the first-tier cities have become more and more high-end, showing that the shopping environment and the introduction of brands have both become high-end, and manufacturing companies are doing the same; second, they have followed developers to turn their attention to the third- and fourth-tier cities and seize a large number of With market share, the industrial and commercial parks with cabinets as the main industry are springing up, all trying to integrate industry resources on a larger platform. However, no matter how horizontally it develops, it cannot get rid of its vertical creation. Jiang Dehui believes that the consumer environment has changed quietly. Advances in information technology have made consumers increasingly accustomed to searching the brand's reputation and online reviews when they decide to purchase.

Some experts believe that last year was the first year of change in the channel of the Chinese furniture industry, and e-commerce was able to develop rapidly. Before the sales channels, the situation of a big supermarket was changed. However, the disputes between online and offline disputes are difficult to distinguish. The first is Wang Jianlin and Ma Yun bet. After the Red Star Meikailong Chairman Che Jianxin and Ma Yun and Wang Jianlin bet, “10 years later, if the electricity supplier alone In the high-end retail market share of more than 15%, lost to Ma Yun and Wang Jianlin 100 million each. "But it seems that the favorable factors seem to tilt to e-commerce, there are stable and well-known dealers predicted that five years later, the furniture industry transactions It should be more than 30% completed online and may even reach 40%.

"Not much change in sales model" is considered to be the cornerstone of traditional cabinet stores. Regardless of whether it is leased or owned, there is little to be said about the operation and management of the market, and even the needs of tenants and the habits of consumers are not met. Last year's "The Singles Festival", It is said that all-youth cabinets have sales of more than 100 million yuan, but cabinet stores also have "electric shocks" and build their own online shopping. They are online and offline, and they should not be competitors but partners, thus constituting a bigger one. platform. The consensus of the industry is that large cabinets must be the future direction of development, but through the advancement of information technology, through the mastery of core technologies.