The stronger the stronger, the weaker the weaker
In 2010, China's overall wardrobe market was unpredictable: Sofia, Holocaust, Dinggu and other first-line well-known brands accelerated the speed of network expansion. As the network expanded, the market share continued to expand. The sales volume has dropped sharply, making life difficult. According to industry estimates, in 2011, the stronger the stronger wardrobe industry in China, the weaker the weaker situation will continue.
Reasons for polarization in the wardrobe industry
1. Increasing cost pressure on enterprises and lower profits.
With the continuous increase in labor costs, site leasing expenses, and raw material prices, the cost pressure of enterprises is increasing. As a labor-intensive enterprise, the overall wardrobe uses a large number of workers; coupled with the low effective utilization rate of materials and high waste; the current high land prices and housing prices in various places have increased the burden on enterprises. As the cost increases, the profit of the enterprise becomes thinner. Due to the limited financial resources of small enterprises, weak pressure resistance, and thinning profits, they will affect investment in channel construction and other aspects of the enterprise, and development will be "obstructed."
2. Weak product development and design capabilities.
Due to the limited funds of small enterprises, and the lack of attention to the cultivation of talents, the shortage of talents has led to weak product design, research and development, and innovation capabilities. As a customized product, the whole wardrobe is highly sought after by consumers for its personalization and good storage function. To improve R & D and innovation capabilities, enterprises must have excellent design talents. The lack of talent makes the design, research and development, and innovation capabilities of enterprises weak, making it difficult for consumers to gain favor, and making it more difficult to stand on the market.
3. Weak service awareness and low level.
Weak service awareness and low service level are common problems of many small wardrobe companies. The whole wardrobe transaction process has many links and long time, and the service runs through. Due to weak service awareness and low level, consumers' trust and loyalty are low.
The increasingly fierce market competition provides customers with good services, which not only can effectively conclude transactions, but also help consolidate old customers and expand new customers; at the same time, it also helps to increase the added value of products. Faced with fierce market competition, poor service awareness and low service level of enterprises will lead to loss of consumers.
During the market development process of small wardrobe companies, "blocking" phenomenon occurred frequently, the market share became smaller, and the development encountered bottlenecks. The high-profile and influential companies have obvious advantages in funds, talents, technology, channel construction, and services. Therefore, consumers have high trust and loyalty, and their market share continues to expand, resulting in stronger strong, The weak are weaker.
Super dealer or will appear?
In 2010, due to the increasing number of "water testers" in the overall wardrobe industry, especially the entry of furniture, cabinets and other enterprises, market competition has escalated. Furniture, cabinets, etc. have many similarities with wardrobes in terms of production equipment, technology, craftsmanship, etc., so entering the wardrobe market is a matter of course. In addition, due to their strong strength, strong influence, high visibility, and perfect and high-quality channels, these enterprises have helped them quickly enter the development track. At present, cabinet companies such as Oupai and Hanli have established independent whole wardrobe franchise stores, and launched a variety of competitive products, which have been well received by consumers.
There are more and more wardrobe companies, and the overall competition in the wardrobe market will further intensify in 2011. Coupled with the continuous maturity of consumers' consumption concepts and the increasing maturity of the market, companies must increase investment in product research and development, continue to launch competitive products, and obtain consumer trust and improve satisfaction with differentiated products; at the same time, Only by paying attention to the promotion and promotion of products, and through effective promotion by TV, industry magazines and other media, can we increase the company's visibility and influence in order to gain a foothold in the fiercely competitive market and seize more market share.
With the increase of "water testers" in the overall wardrobe industry, market competition is becoming increasingly fierce. Among the many "water testers", there are many high-profile, influential, and powerful overall furniture, cabinets, and other companies, plus many well-known foreign brands have rushed to the beach due to their optimism about the Chinese market; domestic first-line well-known brands have Market share has increased market development efforts. Therefore, in 2011, China's overall wardrobe market competition will be upgraded. If small and medium-sized enterprises want to gain a foothold in the market, they must increase investment in product research and development and innovation to improve their core competitiveness and comprehensive strength. Otherwise, it will be marginalized or even eliminated.
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