Floor company "value war" will become the mainstream of market competition

At present, as the home furnishing market progresses and the flooring industry continues to grow and improve, the market competition for floor companies is constantly escalating. The people of insight in the industry believe that the “price war” model will inevitably stop gradually, and the “value war” will continue to heat up and gradually become the mainstream in the market competition.

In the current cold market situation, with real emphasis on brand building, a few brand flooring companies have established brand status, and their brand premium capabilities are significantly higher than most other floor companies. This requires and reminds us that in order to achieve sustainable development for flooring companies and brands, we must return to the fundamentals of value competition.

Brand premium ability polarization policy adjustments have led to polarization of corporate development status. Under the background of real estate regulation, the brand development of the flooring industry is rapidly diverging into two levels. On the one hand, the strength brands continue to attack the city, expand the country, seize market share and gain development opportunities; on the other hand, some brands with weaker anti-risk capabilities have stagnated or even declined.

Saturated competition promotes the polarization of brand premiums. At present, the industry’s overall brand premium is continuously weakening, resulting in continued dilution of corporate profits. This is mainly due to three reasons. The first is the homogenization of products and the lack of innovation. The second is the large number of industrial enterprises and the trend of overcapacity. The third and most important reason is the competition of market regulations and integrity. Order has not really formed, and the price war is very serious.

To stay awake in the face of difficulties At present, the environment for the survival and development of floor companies is more difficult, and some companies are not selling well, causing a backlog of serious production and financial pressure.

The price competition in the flooring industry is widespread and it is impossible for companies to avoid them regardless of their willingness. In the price war, the floor companies are only active and passive, rational and obedient. Even if it is a company that opposes price wars, it is difficult to forego giving up participation in price wars.

Faced with the current situation, the more difficult it is, the more the floor company should maintain a calm mind, objectively analyze the internal and external environmental factors of the company, re-examine the strategic positioning and tactical use, and find the advantages and disadvantages of its own company.

For example, which of the big city strategy and the 3 or 4 level city strategy is suitable for its own enterprise? Should mainstream sales products in the category increase or decrease? Channel layout needs or focus on quality? Does the brand promotion and ad delivery strategy need to be adjusted? Does single store output need to be redeployed? and many more. These details need to be resolved calmly.

To solve these problems, flooring companies may be able to usher in the spring.

Reasonable Differentiation Strategy Differentiated strategy is a wise choice for strategic positioning of a company.

This is an old-fashioned issue, and product differentiation is extremely important for flooring companies because it is one of the important factors in ensuring market share. Product differentiation mainly embodies three aspects. One is the differentiation of wood species; the other is the differentiation of process technologies; and the third is market-specific differentiation.

The market segmentation is related to market differentiation in product differentiation. Different brands have different product positioning, and different brands in the same brand have different positioning. Flooring companies must constantly research the market, discover new market segments, and quickly become the strongest player in this segment. Now the floor market is no longer unified, and the pattern of one drug treatment is all-embracing.

Over the past 10 years, the flooring industry has risen rapidly. The annual output value has exceeded 30 billion yuan, driving the economic growth of related industries in the upper and lower reaches more than one trillion yuan. In this stage, the development of the flooring industry is basically smooth and the sales channels of brand enterprises have expanded. Very quickly. However, for the flooring companies whose profits have been excessively thinned, in the current environment, whether they are trapped or break? Reform or transformation? This is an extremely sensitive but necessary choice.

This issue needs to be viewed from three perspectives: one is to look at timing; the other is to look at its own strengths and capabilities; and the third is to look at channels and talents. In order to get a head start on the occasion of the arrival of the aircraft, floor companies must intensify product innovation, expand marketing thinking, and reform management models. For qualified companies, now is the best time for enclosures and people.

With the innovative means of exploring the new Blue Ocean during the “12th Five-Year Plan” period, the country will build 36 million sets of affordable housing. At the same time, the direction of China’s urbanization development will remain unchanged, and the rapid economic development will inevitably bring high quality to consumers. The requirements of life, therefore, the prospects for the flooring industry are bright.

Of course, the bright future does not mean that every floor company has a chance. The opportunity belongs only to the companies that are prepared. In the current situation of real estate purchase without any loosening, the impact on the floor companies will not be reduced in the short term, in order to highlight the encirclement, invincible, only to take the road of innovation in order to open up a new blue ocean.

The intensified degree of competition in the market will eventually lead to one direction, namely, the concentration, scale, and excellence of the industry brand, which is the inevitable result of the development of market laws. Brand floor companies should improve their technology, reduce costs, increase added value, step out of the strange cycle of market price wars, further strengthen their core competitiveness and comprehensive strength, and be prepared to meet all challenges and opportunities. For the flooring companies, the relevant departments will also certainly enhance the management, tilt the policy, strengthen supervision, encourage industrial scale, cluster development, support the reorganization of assets of leading enterprises, and enlarge and strengthen the leading enterprises. Provide strong support for industry restructuring and shuffling.

Cost management will also become a key factor in determining the success or failure of flooring companies. Cost management is a big issue. It includes all the links in the whole chain of raw materials, production, sales, circulation, and services of flooring. As the size of the company continues to grow, cost management will play an increasingly important role. It is not only related to the actual benefits of the company, but also related to the speed of market reactions. In the market economy environment, economic efficiency is always the primary goal of corporate management. The cost management of floor companies should also establish cost-effectiveness concepts, and change from the traditional concept of “saving and saving” to the concept of modern benefits.

Opportunities are always favored by those companies that are prepared. Under the current situation in which the flooring industry is facing various difficulties, are the Chinese flooring companies ready?