Blind expansion leads to severe saturation of the cabinet market

Taking advantage of the entire cabinet industry, on the one hand, due to the impact of the big environment, the cabinet market is in a depressed state. On the one hand, some cabinet companies are still expanding to occupy a broader market. Under such circumstances, the cabinet market is seriously saturated and overcapacity has become an indisputable fact in the cabinet industry.

Some companies have blindly expanded in the past few years due to the boom in real estate, and some Chinese cabinet companies have expanded their enclosures in an “enclosure movement” and are waiting for the added value of real estate through “enclosures”. The mentality of the company's top management is so impetuous that the entire company’s employees can “stabilize” where they are going, and this “expanding enclosure” development approach is only temporary. It is the “desire” of the domestic investment industry that allows the cabinet companies to be ready. At present, industry laws and regulations are not standardized, and incompleteness leads to frequent occurrence of various events.

It is undeniable that efforts to expand the scale of the company are the only way for the development of the company. However, when the foundation of the company is not solid enough, the development strategy of expanding the market scale for the market size is a bit of a distraction. The purpose of business development is to make it more profitable. Nowadays, the competition in the cabinet industry is unprecedentedly fierce. Under the premise of strengthening the strength of enterprises and keeping their own business territory, it is the most basic development mode to carry out the development. However, blindly expanding the scale of the enterprise market not only increases the difficulty of the management of the company, but also generates capital risks to a certain extent, and it easily leads to the loss of the company due to small losses—negligence of the company's development.

Cupboard companies that have caused severe market saturation in some regions still adopt measures to blindly expand production capacity, leading to severe saturation of products on the market. Some regions only pursue one-sided economic benefits while ignoring the overall appearance of the market, leading to this phenomenon becoming more serious. Because small and medium-sized brand cabinet companies have low risk resistance capabilities, they have been hit more hard by the market than by adopting shrinking production lines to cope with the off-season. Some companies have gradually reduced their production capacity since May, which has reduced the cost of labor costs and other factors, and has helped reduce the pressure on companies' inventory.

Under such circumstances, cabinet companies should pay attention to differences in products and continuously reform the production process so that the products can be differentiated from similar products on the market in order to achieve the goal of attracting consumers. The powerful cabinet companies can also adopt new methods of research and development to attract consumers, create new technology products, and attract new products to the market through new products, so as to achieve innovative product designs and convince consumers with product quality.

In short, if cabinet companies want to successfully digest production capacity, they will not be able to continue to pursue large-scale production or pursue expansion of production, and they will no longer be able to do "big goods" as extensively as they used to. Instead, they must use their existing manpower and material resources to make more sophisticated and scientific content. And higher value-added cabinet products or marketing work.