Cabinetry companies go to the middle and low-end market "winter"

Since the beginning of this year, the "winter" mood of the home furnishing industry has not ended. Affected by various factors such as the New Deal in the property market and the increase in the cost of plates and human resources, the overall decline in cabinet product sales in major cities across the country has been a consensus among businesses in the industry. The cabinet industry is still exploring the way out for enterprise transformation under a series of uncertain economic trends and serious market homogeneity competition.

Huge business opportunities in low-end market

On the one hand, cabinets are facing a situation of decreasing sales and increasing pressure in first-tier cities. On the other hand, the sales of cabinets in the third and fourth tier markets have increased exponentially. This has led many cabinet manufacturers to set their sights on a broader market: urban and rural markets. A few years ago, cabinet companies that started laying third- and fourth-tier city distribution channels have tasted the sweetness.

The low-end market may become a life-saving straw for cabinet enterprises to overcome difficulties and become a part of strategic development. Not only did they find business opportunities from cities outside the first tier, the reporter learned that under the premise of the government increasing the construction of policy houses this year, the rigid demand of affordable housing and two-restricted housing has also become the goal of the cabinet enterprises to "attack", and this part of the people are also forming An important part of the low-end market.

The emergence of new business opportunities has promoted the need for corporate transformation. Well-known cabinet enterprises have strengthened and strengthened the productivity of cabinets and started a market competition. This year, Shengxiang has been newly strengthened on the second line. At present, the annual production capacity of the strengthened cabinets has reached 20 million square meters. Living households have built new factories in Nantong and Guangdong to expand the strengthened cabinet production capacity.

Diversified production and cross-border alliances

The cabinet business seems to be a little 'not doing business' this year. In addition to launching market competition on the channel, some important cabinet enterprises are also seeking to extend the upstream and downstream industries to form an in-depth development pattern. Wardrobes, wallpapers, wooden doors, etc. are the first areas that cabinet companies have set foot in. European cabinets have built wooden doors, wallpapers, and cabinets.

Insiders said that the direction of product diversification in the cabinet industry is a development trend in the future. In addition to cabinets and wardrobes, circulation to other wood product industry chains can improve the competitiveness of enterprises, enrich product lines, and improve the ability of enterprises to resist risks. He said that industries such as wallpaper, wooden doors, and wardrobes are still in an immature stage, and cabinet enterprises will be more successful in entering these industries.

In addition to diversified production, cabinet companies this year are also keen on cross-industry cooperation. When the market environment is full of uncertainties, alliances with other companies are a major factor in getting rid of 'loneliness'. Many companies have joined forces with decoration companies to divide up the refined decoration market; at the same time, the form of inter-industry alliances has gradually become popular. All parties to the cooperation have achieved resource sharing in brand communication, channel promotion, after-sales service and other aspects, intending to snatch their respective industries. market share. Diversified production and cross-border alliances help companies to gain a foothold in the low tide, while also reducing homogeneous competition. It is understood that imported cabinet enterprises are also looking for cooperation breakthroughs in industry barriers.

People in the industry generally believe that the cabinet market will continue the process of 'shuffling' from the second half of the year to next year. The transformation of product lines and the exploration of new business models will become long-term tasks for enterprises. Gao Zhihua, chairman of the Wood Circulation Association, pointed out that the second half of this year In addition to major brands, general brands must shrink, and the third and fourth tier markets will become the main battlefield for cabinet competition.



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