Second-tier and third-tier market opportunities are even greater
At noon on November 14, the reporter called a friend who opened a cabinet factory in Zhengzhou and learned that the friend was in Xinyang. "During the" Eleventh "period this year, I opened a specialty store in Zhumadian to let my family ’s relatives take care of it. Now the business is very good. This time I went to Xinyang to see if there is a suitable place to open again A shop. "This friend told reporters that there are still some colleagues around him who are trying their best to expand their business in second- and third-tier cities.
Sun Dongming, chief of the home improvement section of the decoration and decoration industry management office in Henan Province, believes that branded cabinets face a situation of decreasing sales and increasing pressure in first-tier cities. This is an indisputable fact. However, the cabinet sales in the second and third tier markets and even the third and fourth tier markets have unexpectedly experienced rapid growth. As early as a few years ago, cabinet companies that began to lay out second and third tier sales channels have tasted the sweetness, driving more Of cabinet manufacturers have set their sights on the broader market.
Chief Sun Dongming believes that many cabinet manufacturers are not only busy looking for business opportunities in the periphery of first-tier cities, but under the premise that the government is gradually increasing the construction of policy houses, the rigid demand for affordable housing and two-restricted housing has also become a market expansion target for brand cabinets. It can be seen that the second- and third-tier cities and low-end and middle-end markets have become a must for many cabinet brands to overcome difficulties.
Anti-risk catalyze diversified development
Since 2009, some cabinet brands have embarked on a path of diversified development. Some well-known cabinet brands have tried their best to extend to upstream and downstream industries, forming a pattern of in-depth development. Wardrobes, wooden doors, etc. are the first areas for cabinet companies, such as Europe. In addition, some wooden floor brands, such as Shengxiang and Shengda, have also begun to get involved in the production of wooden doors and wardrobes.
Industry insiders said that the diversification of products in the cabinet industry is a future development trend. The circulation of wood products such as wardrobes and wooden doors can greatly improve the overall competitiveness of the enterprise, enrich the product line, and can also help companies improve their ability to resist risks.
The effect of inter-industry alliances is recognized
In addition to the tendency of product lines to gradually diversify, the major cabinet brands are also keen to conduct cross-industry "different industry cooperation". As a professional group-buying website with high visibility in China, China Groupbuy Online has helped six brands including Yilibao cabinets, Wrigley bathroom, Shengda floor, Huahe wooden doors, Holoca wardrobe and Harvard water heaters form a "1 station alliance". The events received good results.
"When the market environment is full of uncertainties, forming alliances with other companies is an important way to get rid of the" loneliness ". In fact, many cabinet companies have long begun to cooperate deeply with home improvement companies. At the same time, the form of" foreign industry alliances "has gradually become popular There are many more reasons. The parties involved in the cooperation share resources in brand communication, channel promotion, and after-sales service. The products of each other do not conflict, and they can fully grab the market share of their respective industries. "Head of China Group Buy Online Zhengzhou Station Manager Song believes that both diversified production and cross-border alliances can help cabinet companies gain a foothold in the overall low tide of the market, while also eliminating the disadvantages of homogeneous competition. At present, many home furnishing brands, including many cabinet brands, are striving to find breakthroughs in cooperation with industry barriers.
On November 15th, on the second floor of Phoenix, Zhang Yixing, general manager of Dongfang Bangtai Cabinet Zhengzhou, believes that the brand cabinet market will continue to "shuffle" until 2011. The diversification of product lines and the exploration of new business models will be long-term. Mission, second- and third-tier cities and even third- and fourth-tier cities are expected to become the main battlefield of the cabinet industry.
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