Wooden door industry can get out of the game?

According to statistics, in the first half of this year, China's wooden door market sales fell by nearly 20% year-on-year, and many wooden door companies are pessimistic about the trend of the wooden door market in the second half of the year, and then began to shrink the marketing front to maintain strength. Can the wooden door industry take “diversity” out of the mystery?

In the first half of the year, the sales volume is unlikely to turn better in the second half of the year. In the past decade or more, the Chinese wooden door industry has developed rapidly thanks to the rapid growth of the Chinese real estate industry. However, too rapid development has also caused the wood door industry to accumulate too many defects and hidden dangers. When the economic environment develops in the direction that the industry is most reluctant to see, the impact of these defects and hidden dangers begins to gradually appear and enlarge.

The continuous tightening of the property market has brought unprecedented pressure on sales to the wooden door market, while rising operating costs have also squeezed the profit margins of the wooden door market. According to statistics, the wooden door market this year has fallen by about 20% year-on-year. According to relevant sources, the overall growth of the wooden door industry this year is uneven, and some large companies have started to show negative growth. Affected by the national regulatory policies and overcapacity, many factories are currently in a state of maintenance.

Whether the "cold" market in the first half of the year can be improved in the second half of the year and all businesses are pessimistic. Industry insiders said bluntly: “The market environment was not very good throughout the first half of the year. The second half of the year may be worse than the first half. For the second half of the year, we did market research in June. The results showed that the overall trend is not good. This year’s market will be a "Indifferent." Regarding this, many people in the wooden door community hold the same view. If the national adjustment and control policy is not adjusted in the second half of the year, tepid conditions will remain.

Imbalance in input and revenue Wood door manufacturers shrink sales Compared with other industries, the entry threshold of the wood door industry is relatively low, the number of small and medium-sized brands stands, and there is a relative surplus of production capacity. In order to sell and survive, SMEs can only fight prices without much recognition. However, in the first half of this year, the wooden door industry was uncharacteristically, and the situation that wood doors did not promote sales was very common.

What are the reasons behind the promotion of wooden doors? The main reason is that the investment and earnings of promotional activities are obviously out of balance, allowing businesses to “cry without tears”. Due to the influence of the large environment, competition for survival has become particularly fierce, and many brands have participated in the marketing of many channels, and home-field activities have been strongly launched, forming a situation of no promotion. For a time, it can promote sales, and there are activities almost every week. Markets, businesses, and group purchases are all crazy. "However, too frequent promotions do not bring new feelings to consumers. Businesses and customers are numb. Gradually, the investment and revenue of promotional activities are obviously out of balance. Businesses want to cry." Xu Xianming said: "At present, many brands are slowly Convergence, first, adjust the strategy, and second, compress high advertising costs to spend building materials "winter."

In the market downturn, merchants value input and output more. Many companies are not optimistic about the market, shrinking sales promotion due to operating costs.

"Diversification" has become a way out of the industry? Businesses are holding their own words At present, some wooden door merchants have begun to adjust a series of corporate development strategies, of which diversification has become a more popular business philosophy in the industry. Can the wooden door industry take the “diversity” out of the mystery? The attitude of the merchants is completely different.

The brands that are in favor of the diversified operation of the wooden door industry are currently out of their own diversified roads.

In the eyes of some people in the industry, single-category fights have shown weaknesses. Diversification is a product of market development and inevitable. Adjust strategic thinking, increase the extension of its own brand, and diversify development, which will benefit the sharing of corporate resources and expand the benefits. Combining purchases also brings consumers cost-effective product advantages and overall after-sales service guarantees.

The diversification of operations can indeed bring a series of benefits to the company, such as increasing profitability, diversifying business risks, and resisting downturn in the industry. However, not all wooden doors companies are suitable for diversification strategies. SMEs have been hindered by the development of funds. There are also many people in the industry who are skeptical about the road to diversification. Under the downward trend of the entire industry, it is not a good practice to rely on diversification to break through the development dilemma. People in the industry generally believe that diversification is not a short-cut for diversified businesses that require team operations and market costs, and whose brand appeal is not sufficient and whose operations are not professional.

On the whole, for diversified operations, wooden door companies must make clear their own position, remember blind expansion, advocate multiple developments, specialize in operations, and build a professional team in the fields involved.