Analysis: Five luminous spots in the flooring industry in 2011

Gao Zhihua, currently chairman of the floor circulation committee of the China Timber Distribution Association, and an expert in the flooring industry. Gao Dao, who has been engaged in the flooring industry for decades, has a more accurate vision and unique insights into the development and trends of the flooring industry. Next, Gao Lao made market predictions for the 2011 floor industry in China, and took the pulse industry to the direction of the industry. People discuss together.

In the face of the floor market since the financial crisis in 2007, despite the recovery period in 2009 and the growth period in 2010, since 2011, in the face of the country's strong regulation of the real estate industry, the new version of the eight countries and provinces, regions and cities With the issuance of the Detailed Implementation Regulations, the transaction volume of commercial real estate and the property market in all provinces, cities, and cities, especially first-tier cities, has declined significantly. The flooring market is facing an extremely severe situation and has entered a cold period that is even warmer than winter. During this period, the Big challenge to the operation and management capabilities of all floor companies. For floor companies, this will obviously be a time when the risk is greater than the opportunity. Here I will give a brief explanation of the 2011 floor market with five points:

First, the sharp decline in market capacity, market reshuffle increased As we all know, the sales of floor companies consists of three parts: First, the new construction and the sale of real estate sales of new users, the second is second and above (including second-hand residential sales) Renovated old users, the third is a large number of users of a procurement project renovation (new). The proportion of the above three parts is basically 6:2:2, which means that users of newly installed floors account for most of the overall sales of floorboards; at the same time, the target customers of most floor companies are also new users. In the current environment, the capacity of the floor market depends on the capacity of the building decoration materials market. The capacity of the building decoration materials market depends on the capacity of the decoration market. The capacity of the decoration market depends on the number of developments in the real estate market. Development depends on the supply and development of local real estate. The development of the real estate market is entirely funded under the current environment with Chinese characteristics. The source of funding depends on the orientation of China’s financial policies. Ultimately, China’s financial policy is entirely determined by the government. Manipulate.

At present, with the new economic development model as the guideline, lowering the absolute value of CPI as the core and reducing the excessively large proportion of the real estate industry in GDP has become the consensus of the government. The most direct policy is to reduce liquidity, and from the end of 2010 to the introduction of this year, raising the bank deposit reserve ratio and raising interest rates is the most direct image, so as to achieve the purpose of reducing the blind development of real estate companies and maintaining reasonable housing prices; The affordable housing projects and low-rent housing projects for the people's livelihood project, but for the floor companies, in addition to a certain amount of supplements to the sales of hardwood flooring, the impact on the overall situation is basically negligible, and the resulting high and medium The sales of positioning products will be greatly impacted. Especially in the first half of this year, the company's life will be very difficult.

For the sales terminal market for floor companies, according to the recent data from the Beijing Real Estate Trading Center, since 2010, the daily turnover of new and existing commercial housing in Beijing has increased from 1,000 in 2010 to the current average of 75. %; Thus, the floor market capacity of first-tier and second-tier markets centered on Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou will decline rapidly; however, on the other hand, the recent reports from the publicly-reported provinces, regions, and cities From the perspective of the central government's real estate regulation and control, in terms of a relatively short period of time, some second-tier cities and most third-tier and fourth-tier cities still cannot get rid of the old land fiscal revenue policy, so some second-tier cities and most of the third and fourth The volatility of the capacity of the line city floor market will be smaller. However, it should be noted that although the volatility is small, the main tone will still be a drop rather than an increase. In general, the market capacity will be sharply reduced.

In 2010, it is believed that all floor companies are still a year of harvest. According to statistics, in 2010, the sales volume of wood flooring in China reached 400 million M2. At the same time, there are more than 5,000 flooring manufacturers, but among them there are only brand enterprises. About 1,000 to 2,000 companies, accounting for only about 25% of the total number of companies, under the current situation of a sharp contraction in the market, the overall supply and demand relationship in the market is still oversupply; and from the perspective of market share, the first-line and the second-line brand is about to enter the first-line. The market share is still rising (note that this does not refer to absolute sales), while the market share of second and third-tier brands and below is constantly declining, and competition among brands is constantly heating up.

Once there was a floor dealer’s joke: We don’t sell floors, but instead sell electricity, sell sanitation, and bedding. We erode not the market share of peers, but the market share of home appliances, health, bedding, etc.; In order to retreat, the industry has a tendency to monopolize the first-line brands; moreover, hot money and related industries represented by decoration companies and real estate companies have continuously entered the flooring industry due to the huge overall capacity of the floor market and low entry barriers. Some enterprises in the real estate industry and the decoration industry have opened their own floor professional factories in recent years. In short, the number of companies in the industry is constantly expanding. As a result, the reshuffle of the flooring industry that began in 2005 will continue and will intensify.

Second, channel construction and optimization has become a top priority The sales channel has always been the key to the development of the enterprise, and even more important is the brand building as the core business development. There are many problems involved in the construction and development of sales channels. Today we only briefly describe two points:

1, the terminal is king The current channel situation in the industry is still the business model of the franchise dealers in the decorative materials market as the main business model. Under the current situation, this model has the following problems: The company with brand development as its main body is The brand development needs, the area of ​​the shop is getting bigger and bigger, and the decoration is more and more luxurious. Most of the above fees were paid by distributors and manufacturers and distributors were overwhelmed. As market competition becomes more intense, promotions become the normal means of business, and profits are greatly reduced. The rapid growth of the decorative materials market of the channel main body led to a sharp increase in the number of terminal stores, while the single store sales dropped drastically. The cost of store rental in the decoration material market of the channel main body rose sharply, resulting in a sharp decline in unit sales profit. The competition among the channel's main decoration materials market is conducted to downstream suppliers. In order to seek competitive advantages, suppliers and distributors have to compromise channels and even pay gray expenses.

The lack of loyalty of dealers, insufficient training, lack of operating capacity, and insufficient funds. These problems have greatly hindered the development of enterprises. To seek dominance over the market, many companies have made unremitting efforts. In addition to setting up subsidiaries in each province to strengthen market control and enhance service, some companies seek to Directly to open stores; other avant-garde companies even set up separate experience halls outside the decorative materials market to seek breakthroughs, but the effect is questionable. It is not the result of this practice that is not good, but most companies generally hold experimental ideas. As a result, there was no sound potential, but the furniture companies in the industry already had successful cases. Qumei Furniture in Beijing, for example, already had no store in the decorative materials market, but instead opened an experience hall, display center, and flagship store in downtown Shanghai. .

In a word, the channel problem is one of the key issues for enterprise development. Mastering the channel equals half of the company's success, especially for companies that can successfully control the channel, and the channel is king.

2. The impact of the development of new channels on existing channels In addition to the original sales channels of the decorative materials market, engineering projects and supermarkets are all important channels for some companies; however, with the rise of the Internet and B2B sales With the popularity, many emerging sales channels are gradually emerging, especially the sales channels related to e-commerce are highly valued by consumers in the 1980s and 1990s. However, in recent years, B2C online stores have been promoted and community forums have been promoted. New channels such as group buying websites are attached to traditional channels and are more or less in conflict with the original channels. This is manifested in:

Limited to the special nature of flooring products, product purchase must have physical store support, which directly tests the company's ability to control the original channels.

The operating costs are not low, but the direct profit decreases and the company's profitability conflicts. The conflict between the emerging channel sales and the original channel sales, the cake has not become bigger, and the market segmentation has become more and more detailed. The contradiction between the distribution of profits between enterprises and dealers, in the end e-commerce and group purchase is done by companies or distributors, the important thing is the company's market share in the local. Due to the special nature of flooring products, the solution to the paving problem has become a problem that plagued the development of new channels. Although companies attach importance to emerging channels, they have not prepared for the expansion of new channels, including the expansion of plans, the company's hardware, personnel, and most corporate leaders' ideas. Although the development of emerging channels cannot yet become mainstream, development in the future is not what we can predict now. Solving these contradictions is one of the keys to the development of new channels. At present, it is also an important supplement to existing channel sales.

Third, management is the source of benefits. I do not talk about planning, organization, personnel, leadership, and control of these management routines. I only talk about people. Many bosses are unable to keep up, and the mobility of corporate staff is too great. What are the problems here? Why is the small number of employees in the industry as a small part of the company's mobility, why Nanchang's staff flow so much?

What management is in the end, and management science is about designing and maintaining a good environment and enabling people to accomplish the set goals efficiently in groups. In a relatively loose environment, competition is relatively weak, and the returns of various companies are relatively good. Although everyone is talking about management, there is no real rule of thumb for management effectiveness; today and foreseeable. For a period of time, the environment has deteriorated and the sales situation may not be as good as before. This is the time to really test the management skills of enterprises. This period is a touchstone, good management, high brand awareness and products. The selling point, service availability, good corporate cohesion, strong management team capabilities, staff training, improved management system, strict financial system can successfully survive tough times, and even market share will continue to rise; To these, it will eventually be eliminated by the market.

How to do good management, the first is to have good staff, establish a good team, and establish a good team, generous salary and benefits is not to find a good employee's necessary and sufficient conditions, the establishment of corporate culture is the current wooden floor The top priority of enterprise development is that many bosses are unable to keep up with people. The liquidity of business personnel is too great. The deep problems here are that many companies, including some large companies, do not have a very good corporate culture. The boss is talking about short-term benefits every day. Then your employees. Certainly it is also about short-term benefits. How employees can achieve common destiny with companies is a big article, hoping to arouse the attention of present and absent entrepreneurs; and secondly, to be people-oriented and people-centered is not only to require employees to work at all times. Paying attention to the development of the enterprise requires that the development goals of the employees are highly compatible with the development goals of the enterprise, and require the enterprise to pay deeper attention to the employees. The enterprise must not only design and maintain a good environment, but also enable the employees to efficiently accomplish the set goals in the enterprise. , more reasonable arrangements should be made for the adaptability of employees and reasonable arrangements for employees. Business planning, reasonable arrangements for training and improve the quality of staff, reasonable arrangements for employee benefits and so on, truly people-oriented. It is natural for these business people to become stable. Entrepreneurs who are present and who are not seated do not have to worry about looking for good people every day. The development of the company will naturally be smooth.

The reduction in profits brought about by the intense competition and the increase in costs brought about by the normalization of management will eventually be absorbed by the reduction of consumption caused by the high-quality management of the enterprise. At the same time, it will bring about a substantial increase in the competitiveness of the market and the team’s Stability, management, and management do not speak for the best. Management is one of the sources of business benefits.

Fourth, restructuring and integration is the only way for the development of the industry Now that some companies have already listed, some companies are doing pre-listing preparations; many companies from the previous single-product multi-brand vertical development to today's multi-product horizontal expansion, Doors, closet doors, cabinets, tiles, etc. Wood products and non-wood products have become the operating items of our flooring companies.

This represents a trend of development that will attract the attention of all present entrepreneurs. After a certain degree of development, most companies will encounter shortages of funds. After introducing public funds, it will bring more than just management. The formalization and funding problems have also brought about the rapid rise of brand awareness due to the abundant funds, and the continuous increase in sales volume, bringing about rapid horizontal and vertical expansion due to the enhancement of the company's strength and filling other industry fields. Lack of significant benefits brought by well-known brands, eventually the development of the industry will be more and more concentrated to a small number of oligopolistic companies, and the development of the industry and related industries may eventually retain only a dozen to dozen brands on the market like the home appliance industry. .

At the beginning of this development period, every company has the opportunity to be the ultimate winner, but it is not going to make progress, holding the company that I am the only owner of the idea that I am only a sole proprietor, unless I have the support of the amount of money alone, I will eventually In the development process of this period was eliminated. Therefore, the integration and reorganization of enterprises, regardless of the size of the company for the future survival and development must be carried out in the current period.

What needs special attention here is: From the previous failure experience of multi-brand vertical development of single products and the experience of expansion of large international companies, the above-mentioned practice is a mode that can make a difference, but if you want to succeed, you cannot Only hold the conservative thinking mode of enterprise resource sharing to operate and operate, but to operate independently, separate items, and separate teams, you must not place new items under the original project and give new project teams Independent development space is a must.

Fifth, the old tune, service is essentially the top priority of brand building Association initiated 30 floors of quality, after-sales service dual commitment has been 11 years, the original talk about 3 points quality, 7 points installation, now speak 1 point quality, 9-point installation, in short, the concept of service is talked about every year, every month, every day, every day, but there are few companies that really do their homework, and they don’t talk about quality issues. Several companies will put their services into their own In the annual budget, I don’t think there are a few who are here. Everyone would rather invest tens of thousands of tens of thousands of dollars into the celebrity and entertainment industry to speak for themselves. But how many are involved in the service? How many companies have full-time service teams (after-sales service personnel, full-time installation teams)?

As everyone knows, in essence, consumers regard serving as one of the key concerns in the consumption process. Especially in the current situation where the decoration population has expanded two or three times, the word-of-mouth effect and chain effect are even more powerful weapons for increasing sales; Both rely on the promotion and strengthening of services. In particular, service is essentially an important part of brand building.

At present, the fundamental problem that cannot be effectively promoted lies in the positioning of business operators. Price warfare, as an important means of competition in the current market, has harmed the healthy development of the industry. He not only reduced the ability of enterprises to create renewable blood, but also damaged brand building. The ability to invest, especially the enhancement of service capabilities; At this point, the convenience and distance of management are not the root cause of the problem. The main reason is the cost and the lack of understanding. The profit generated by its own service is not reflected in short-term direct sales. His effect is the same as that of brand building. It is a long process. Therefore, it is very necessary for the old tune to focus on service and service, and it is necessary to raise the awareness of services to an important part of brand building.

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