The sanitary industry is not only facing the impact of market depression, but also the pressure of employment in China's vast regions, as well as rising manufacturing costs such as land, materials, and logistics, plus the government and social level facing the sanitary industry. extrusion. In the future, sanitary ware enterprises will face a situation in which they have to transfer or upgrade to survive. This is no longer a slogan.
Chain reaction caused by store expansion
Although the overall market of the bathroom has shown a downward trend, it is not difficult to see that the bathroom circulation store has not stopped its expansion. If the increase in the past stores is in line with the growth trend of the overall consumer market, then the growth rate in 2011 obviously exceeds the growth of the overall market. This situation has led to three negative effects: First, at some level Or the second-tier cities with strong consumption power, the disorderly increase of the stores, leading to the over-exploitation of the market, and the circulation channels of the market have shown a kind of excessive momentum, leading the dealers to be the first victims and their profit margins. The decline is very high; secondly, the dealers' difficult brands have to spend more resources to maintain the survival of dealers in the region, or lose the support of dealers in the market, the negative impact on the brand is self-evident; Third, the market's open rate has risen, directly affecting the profitability of the store, and also has a certain impact on the brand of the store.
Although for the store, the rapid expansion of its channel coverage by the enclave is an undoubted strategy for the circulation enterprises, such strategy and development should be in line with the direction of market development. In the case of market shrinkage, the growth rate of circulation stores It should be slowed down. Through the visit, some business operators believe that the store should connect with manufacturers and distributors to jointly face the cold winter of the market, and should be rational and orderly construction channels.
Factory channel contraction
The direct or “being†direct market shrinks and the profit margin of dealers shrinks. Under such circumstances, it is difficult for enterprises to guarantee the quality rate of the channels. Instead, they will waste a lot of resources to maintain the survival of the original channels. The market channel, and the channel has a large number of unhealthy enterprises, this investment has become very huge. In 2011, many Longgang brand enterprises began to effectively integrate the original channels, and adjusted the storefronts that were not profitable in some regional markets. However, from the perspective of brand influence, the negative impact of store revocation on enterprises and brands in the local area is very large. Enterprises often do not want to take measures to withdraw, but take over the dealer's storefront and switch to the enterprise. The battalion method operates the market.
How does the market “Ya Pear†upgrade bathroom company 2012 survive?
In fact, the direct channel of enterprises is not a new measure. For example, Qumei and Meikemei are all successful cases. However, for some enterprises with weaker strengths and scales, there are certain risks in the direct sales channels. The early input of manpower and material resources, and the late remote management are the key to determining whether the direct channels can be successful. Therefore, most of the enterprises directly choose some first-tier cities, or the principle of proximity, most of the sanitary enterprises will choose to operate directly in the domestic big cities; for the first-tier cities, the purpose of direct business is not only for simple sales, but also hope It plays a certain role in promoting brand influence and demonstration. But in the final analysis, many companies are growing normally in the market. If the company keeps developing, it is unwilling to try the channel directly. It can be said that many companies are forced to choose when they are forced to continue to operate. Being directly operated."
Small risk in the crisis
Whether it is direct operation or direct operation, including expanding the market channels to areas not previously covered, increasing the marketing efforts of high-end markets in first-tier cities, or sinking some enterprises to choose channels, etc. In 2012, enterprises I hope to occupy a larger market area and seize more market share.
Only by increasing the number of hits will there be a higher chance of gaining profit growth. Under the premise of shrinking market, we can ensure the healthy development of the company.
From another perspective, the market's depression has also brought some positive factors for the company. For example, in the case of the investment situation, the store has begun to choose to reduce the rent, and the adjustment of the location of the store has also made some mid-end brands have more. The opportunity to get a better position than ever. Under such circumstances, companies can try some new regional markets, and the cost reduction will directly lead to the risk reduction, which may be one of the opportunities in the crisis.
Concerned about surprises
Tag: Marketplace Market Share Analysis Yali First-tier city
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