At the same time of the rapid development of the cabinet industry, product homogeneity is serious, price wars, promotion wars and other phenomena are emerging one after another, and various costs are rising, resulting in a continuous reduction in the profit margin of cabinet enterprises. With the approaching new season of sales in the new year, industry insiders said that cabinet companies should seek new selling points for products and promote product differentiation.
Cost increases, consumption tends to be rational
In recent years, the overall trend of the cabinet industry has been highlighted as two points: First, competition has intensified, consumers have become more rational; another point is that various costs are rising, and the cabinet industry is becoming more and more difficult. These are the common feelings of many cabinet business owners.
"In particular, in recent years, competition has become more intense, consumers are more rational, and the market is not as old as before. It can clearly see the benefits by investing hundreds of thousands. And the cost of raw materials rises, the ex-factory price increases, but the sales price does not. The increase is the labor cost, which is more than 20%. The rent of the store is rising year by year, and the profit margin of the cabinet company is getting smaller and smaller.†The local person in charge of a cabinet company introduced.
Homogenization, serious profits are gradually reduced
However, despite rising costs, the industry price war has intensified. Today, consumers are no longer flustered by the president's signing, discounts, cash draws and other promotions. Consumers eventually become numb in high-frequency, low-confidence promotions.
According to industry insiders, at present, the homogenization and promotion of major brand cabinet products are gradually homogenized, making the profits lower and lower. The profit of some cabinet companies has dropped from 40% to 20%. Even some of the company's special products have implemented “no profit†sales, and the profit margin has been compressed again and again.
A cabinet dealer told reporters about his unspeakable secrets. Each node, the store must be unified to do large-scale promotion, each brand must come up with low prices, not participating is equal to giving up the market, participation does not make money. Like last year there was a store to do activities, the brand made a profit of 15 percentage points, the sales volume is very good, the price is discounted, but the service and after-sales are not discounted, and finally lived for a long time, and counted almost no money. But in any case, the brand has indeed gained a large market share and good reputation in the past two years.
Innovation seeks differences and opens up new growth points
Seriously homogenized products, too frequent price wars and promotional wars, resulting in extremely low profits, individual companies in order to reduce costs, OEM production in the province. In the short term, sales are very good, and consumers are also getting benefits, but it is not conducive to the long-term development of the company, and ultimately consumers are still suffering.
The general manager of a brand cabinet said that the price war is not conducive to the sound development of the company, the brand has no time to take into account the new product development and core technology upgrades, and even the follow-up services will be greatly reduced.
She predicted that in 2013, cabinet companies will step into the crossroads of rising and falling, seeing the market situation and taking the road to success. The original extensive growth model is no longer suitable for the current market. Enterprises have begun to actively seek change, and gradually explore a set of ways to break through the border in the predicament, continue to innovate, find new selling points, differentiate competition, and open up new economic growth points.
Backyard discovery Ñледе
we want to make sure you find the best home goods when you shop online. You have searched for backyard discovery slide and this page displays the closest product matches we have for backyard discovery slide to buy online. With millions of unique furniture, décor, and housewares options, we'll help you find the perfect solution for your style and your home. If you aren`t finding the perfect product in the results for your current search for backyard discovery slide, you can try searching again
Playground Tube Slide,Big Backyard Tube Slide,Kids Backyard Tube Slide,Backyard Tube Slide
Shenyang Golden Childhood playground equipment CO.,LTD , https://www.outdoor-playground.com