How does the flooring industry stand out from the downturn in the real estate market?

Real estate is the main demand market for wood products. The demand for wood products for construction and interior decoration is large, involving major products such as wooden furniture, flooring, and wood-based panels. Therefore, changes in the real estate market will have a significant impact on the flooring industry. The downturn in the real estate market has led to a reduction in the domestic demand for wood products. In the deteriorating international market, the export of the flooring industry is even worse.

The drastic reduction in the export of wood products has led to a large number of products turning to the domestic market. Due to the downturn in real estate, the demand for wood products such as domestic furniture and laminate flooring has been reduced, making the domestic market more competitive. At present, there are many high-density fiberboard products backlog and prices have fallen. According to the survey, the price per cubic meter of exported products of many fiberboard companies is reduced by about 300 yuan, the price per cubic meter of domestic sales products is reduced by more than 100 yuan, and some are even lower than the production cost, forcing some fiber board companies to stop production or semi-stop production.

The real estate industry is a barometer of the market economy. The amount of housing transactions directly affects the decorative materials industry, and the flooring industry bears the brunt. The shrinking of the external market has caused a large number of export-oriented enterprises to turn to the domestic market and caused a great impact on the domestic market. This has made the already fierce domestic market situation even more severe. Under such circumstances, companies that have been painstakingly operating in the domestic market for many years but do not have the advantages of forming brands and channels will be forced to withdraw from the market under the predicament of lack of funding, leading to major changes in the pattern of China's flooring industry.

The advantage of solid wood floor fades

For solid wood and engineered flooring manufacturers, the control of raw materials is one of the key factors to success. Because wood used for solid wood flooring and engineered wood flooring is totally dependent on international imports, while imported wood is becoming more and more difficult, not only is the price high, but also the quality of wood is low, and the import cycle is long, and the occupation of liquidity becomes increasingly apparent. Therefore, companies that do not have financial strength will gradually withdraw from the industry, and those who do not have timber sources will also face the embarrassment of rising costs.

The supply of laminate flooring in the high-end market is in short supply, and solid wood laminate flooring is rapidly expanding based on fully-furnished rooms. The company is developing full-fledged wood flooring with a balance between production and demand for low-end and mid-range products. For example, there is a slight surplus for low-end products of 8mm, while the high-end demand for 12mm is high, and the trend of the future development of laminate flooring is high-end products. The demand will increase; the proportion of solid wood flooring in the market of fully-furnished rooms will increase, and with the implementation of fully-furnished rooms, the market prospects of solid wood flooring will be more optimistic.

In the future, the flooring industry competition will be more evident in the competition of enterprises' soft power, including the comparison of services, channels, and brands. Consumers' sensitivity to floor prices will gradually decrease. Therefore, the concentration of the flooring industry in the future will increase faster than other industries. .

Prevent the aging of floor dealers

Many companies' original single-distribution model has been difficult to support the market. As the effect of high-altitude advertising spreads and the intensification of manufacturers’ capital competition, the focus of market sales is closer to consumers or more and more to the local, county and township levels. The market sinks; most manufacturers can only seek breakthroughs in regional marketing models. The author believes that the breakthrough of the regional marketing model should proceed from China's national conditions, starting from the aspects of human capital, service improvement, etc. Therefore, the focus of the breakthrough is direct marketing, terminal promotion, community service database and other marketing models.

Simply satisfying the needs of consumers and adopting conventional practices is far from enough. In order to gain market initiative, it must acquire the initiative in marketing competition. The market, that is, the battlefield, must develop special strategies for special markets, break through and innovate in terms of marketing models, organizational structures, and service systems in order to win the competition and win the market. Businesses may never fully satisfy consumer demand for personalization, but they can become the industry leader.

When the flooring industry develops to a certain stage and gradually matures in the industry, the aging phenomenon of flooring dealers will appear. In the early stages of dealer aging, dealers began to lack ambitions to start talking to companies about more conditions in their sales, and even diversify the resources they have on hand to invest in other industries. At the end of the aging of dealerships, dealers began unscrupulously. The confrontation with the enterprise is that the end result is animosity with the enterprise and even become a competitor of the enterprise.