How can the bottleneck in the 20-year development of the floor golden period be broken?

With the industry's specifications and market adjustments, the development trend of the entire wood flooring industry requires that floor brands and floor resources become more centralized, and the industry continues to conduct mergers and acquisitions and restructuring. Large companies and big brands have begun to expand on a scale, and some weaker SMEs will merge and merge in this fight. SMEs with no competitive advantage will be eliminated.

In the era of low-carbon economy and post-crisis era, how to get rid of the traditional development model, make the enterprise scale, technology, standardization, brand development, realize the transformation and upgrading of the industry, and become the most important issue for the sustainable development of the company.

Industry Background and Market Capacity Analysis

The data analysis of the Policy Research Center of the Ministry of Housing and Urban-Rural Development shows that:

★ From 1999 to 2009, China’s urban areas built 8 billion square meters of housing for a total of 70 million units in 10 years.

★ At present, there are 620 million urban residents and 210 million households in China. The per capita housing area does not exceed 20 square meters, and the average household size does not exceed 60 square meters. The demand for Chinese consumer housing is moving toward modest improvement and the development of functional housing.

★ By 2020, the total housing area in China's cities and towns will reach 28-30 billion square meters, and there will be an update of 8-10 million square meters of building totals each year.

★ In the next 20 years, 90% of the existing housing in urban China will be demolished and rebuilt. (Except for new houses that have been rushed to develop in the past 10 years, most of the old houses are undergoing reconstruction and reconstruction.)

Therefore, the golden period of the development of China's flooring industry is at least 20 years.

Current status of domestic stores:

★ Most of the operators of high-end stores such as Meikailong and Redstar are large brands in the industry. Most of the operators entering traditional building materials stores are medium- and small-sized brands and no-name brands. Other local local stores are mainly brand-name.

★ Big, medium and small brands are mixed in the traditional stores and "no-name" dragons and fishes.

★ A large number of big brands are in an embarrassing position between high-end stores and traditional stores.

★ 40% of the dealers reflected: “To operate the same brand, it is difficult to make profits in high-end stores such as Red Star Macalon, but it is profitable in traditional stores.”

★ The consumption characteristics of floor products are: what the dealer sells and what the consumer buys. Big brands have low awareness in the minds of consumers. Consumer understanding of branded products: First, the grade of the store decoration, and second, the area of ​​the store.

★ The market is experiencing dealer groups with annual sales of RMB 10-30 million. The powerful dealers are willing to co-market with the manufacturers in the face of “scattered, small and miscellaneous” markets.

Major industry belt status

The floor manufacturing industry belongs to labor-intensive and low-tech industries and is at the low end of the international industrial division of labor. In order to save their forest resources and protect the ecological environment, some developed countries have shifted manufacturing to developing countries.

In recent years, a large amount of foreign capital has entered China's flooring industry. On the one hand, while undertaking the transfer of international industries, it has also made it more difficult to save resources, protect the environment, and save energy and reduce emissions. On the other hand, various provinces, cities, and regions in China have competed in the transfer of international industries. The internal friction has also aggravated the competition in China's flooring market, reduced the competitive advantage of China's flooring products in the international market, and greatly reduced the competitiveness of our products in the international market.

Due to the uneven distribution of China's forest resources, the uneven levels of productivity of enterprises, and the resulting regional market differences, when formulating strategies for the development of the forest industry and structural adjustment plans, we must follow the principle of coordinating the overall situation, highlighting priorities, and following a gradual and orderly approach. Order advance.

Developing industrial belts is a strategic way out

China's flooring industry is still in a mixed-race situation. From the perspective of the annual output value of about 30 billion yuan, the distribution is also concentrated. Flooring companies are no longer pursuing a single production product and are beginning to seek new industrial chain projects. The concept of an overall home is no longer fresh. This year, the flooring industry has accelerated the pace of development of furniture, wardrobes, wooden doors, staircases and other related projects. However, as the flooring industry expands its industrial chain and diversifies its development, people in the industry are mixed. Some people believe that this is a progress in providing overall home solutions. It also contributes to the rational use of resources and diversifies the industrial chain. There are great benefits for companies to maintain their vitality. At the same time, some people in the industry believe that the flooring industry cannot actually achieve a large degree of scale operation because the industry is too dependent on raw materials.

Compared with developed regions in the world, China's floor industrial clusters are still in the embryonic form, and it is difficult to establish a foothold in the international arena, and they do not have overwhelming advantages. Using the market downturn to adjust and upgrade the industry is the way out for the domestic flooring industry.

Although there are many large-scale enterprises, on the whole, China's flooring industry is a scattered, mixed, chaotic industry. Although this industry started at a low cost and supported China’s export trade in the early stages of development, it was destined to be replaced by a scaled floor development model, and scale and standardization were the only way for the company to become mature and gradually mature. Reorganization and upgrade are the inevitable result of the development of the industry.

The year 2010 is coming to an end. From the market performance of various floor companies, different product characteristics and brand positioning have made the difference in the development of the company. Whether it is to continue to shuffle the cards or to "war with the warlords," for enterprises, responding to national policies, constantly summing up experiences and learning lessons, and continuing their efforts are the ways to survive.