Flooring industry to enter electricity supplier to escape the low profit

According to Jiang Yakun, Secretary-General of the Sichuan Home Furnishing Materials Association, under the influence of domestic real estate control policies, housing turnover has been declining; raw material manpower costs have continued to rise; coupled with the product homogeneity caused by the extensive development model of the past, the flooring industry has long been in Price war. The profit margins of floor companies have been repeatedly squeezed, and the flooring industry has entered the era of meager profits.

The gross profit of 30% of brand enterprises, 17% comes from production, 13% comes from marketing, so many companies do not make money marketing, but still profit, in fact, part of the profit protection of the production. Huang Guang, director of consulting and management operations at Shanghai Guangfa, pointed out in a sharp note. The rapid growth of the flooring industry is difficult. This is the common view of most of the flooring industry. In recent days, the reporter learned from the exchanges with the business staff of Anxin, Life Home, and Nature Flooring that the flooring industry has entered the era of meager profits and the industry shuffling is quietly under way. On the letter floor Yu Haigang pointed out that the industry's shuffle is still quietly in progress. The era of profiteering is no longer, the next will be the competition of the brand strength and marketing power of the flooring companies. The remaining market space will not tolerate such a large number of SMEs. The industry reshuffle will not stop for a long time to come. .

In order to support the company’s tradition and e-commerce companies to take into consideration the interview with Huang Guang, the manager of Shanghai Guangguang’s consulting and management operations, the floor company’s self-supported model’s profits are good, and many other floor brands have experienced high-speed expansion. Cost pressure. Of course, the sales profit of first-line products such as Anxin and Nature can still maintain the operation of the company. Huang Guang said that the current competition situation in the flooring industry is “backwards and backwards,” and the strategic mistakes of the floor companies themselves will bring about the loss of the market. The most typical flooring is the floor of the WorldFriends and the floor of living households. Huang Guang said: "In 2009, the home floor was famous. In 2010, it achieved sales of 100 square meters in the entire southwestern store. Now, sales of living home floor in Sichuan are not expected to reach 200,000 square meters." The decline in sales naturally leads to a decline in profits.

Of course, the competition in the flooring industry has caused some floor makers to start to change their minds and enter the e-commerce channel with the momentum of the Thunder. Anxin Floor Shanghai headquarters began to try to enter the e-commerce business. Although it has not achieved very good sales at present, it expressed that it will never turn a blind eye to the electricity supplier. Huang Guang pointed out that the Internet will allow all enterprises to return to the same starting line, and the traditional advantages no longer exist, or even become a burden.

Grab market competition with the same team We have just entered this market, the annual income can have a 30% increase. And this seems almost impossible now. “The Chengdu Magdalen floor owner Yang Xing said. 30%, this figure makes many floor marketing staff envy.” We can now have no room for such growth, every day looking at the amount of tasks arranged above. “Sales staff of a small and medium-sized flooring company lamented. It is clear that domestic flooring companies can no longer touch the profitable era of the previous floor.” Now the number of companies in the flooring industry, even the association has no way to measure, regular, informal The flooring companies compete in the same market. The market is small, but the number of companies is increasing, and it is a great blow to us. ”

According to Jiang Yakun, Secretary-General of the Sichuan Home Furnishing Materials Association, under the influence of domestic real estate control policies, housing turnover has been declining; raw material manpower costs have continued to rise; coupled with the product homogeneity caused by the extensive development model of the past, the flooring industry has long been in Price war. The profit margins of floor companies have been repeatedly squeezed, and the flooring industry has entered the era of meager profits.