Cabinet industry has entered the era of service competition

As the market competition continues to intensify and deepen, the development of the cabinet industry has been in a period of depression, and even if it is the development of sales season, it has not made any signs of its development. Then, what are the reasons why the cabinet industry has been in a downturn? The cabinet industry has entered the "service competition era" from the "product competition era."

Internal competition in the industry

In the past, the operating mode of the cabinet industry was more pre-sale and lighter-sale, followed by the market and light services. In the final analysis, it was to fight products, fight prices, and sell things. But now it's not alright. Now we must pay attention to pre-sales services at the same time. What we fight is service to consumers. Only by winning the consumer's trust with the service finally can the market be recognized. Many manufacturers still remain in the era of products, unable to adapt to unpredictable terminal changes, if these companies can not make strategic adjustments to market changes, will inevitably be buried in the tide of service competition.

Other industry competition

In the current sluggish economic environment, the total market capacity will decline, and the competition between the main forces will inevitably become more intense. This also indicates that the core competitiveness of cabinet companies will face serious challenges.

Serious product homogenization

The cabinet industry is facing serious problems of homogeneity. Each cabinet brand is concentrated in a narrow range in terms of product classification, brand strategy, user experience and business model. The competition has spawned a fierce price war, sales promotion, and channels. Warfare, advertising warfare and so on. However, if a company’s products are to have stronger vitality and higher returns of profits, they must be different from others. Only differentiation can form divisions and make it impossible for competitors to follow. Especially now that the entire cabinet industry is in a period of low tide, how to get rid of this low-level competition model and find a “blue ocean market” of its own as soon as possible has become the most urgent problem for every cabinet company.

Management mode restrictions

Most cabinet makers still belong to the family management model, which restricts the development of the company to some extent. It is true that the family-owned management and management model has played a huge role in the creation of the enterprise. However, after nearly two decades of development, China's cabinet companies have basically completed the initial accumulation of capital and began to enter the key stage of pursuing economies of scale. The contradiction between the family-owned management of cabinet companies and economies of scale and the improvement of the competitiveness of enterprises has gradually emerged. In order to obtain healthy and lasting development, cabinet companies must establish a scientific management system and rely on the system to manage all aspects of the enterprise. For example, after years of development or several decades of development, companies such as the “Youngor” and “Free Bird” in the apparel industry have completed the transition from a “rule of people” to a “rule of law” management model, becoming a well-known Chinese company.

Looking at the market situation, the cabinet market has shrunk to make the competition in the cabinet industry more intense, which will certainly give birth to the reshuffle of the cabinet industry. In this industry reshuffling process, some companies will complete industrial upgrading through resource reorganization, continue to expand market share, and eventually grow into strong companies in the cabinet industry, so that the cabinet industry will enter the brand era; meanwhile, in the process, Some companies will not be able to withstand the market's washing and eventually be eliminated by the market. How to improve the competitiveness of enterprises through resource integration and how to ensure that they survive and survive in the “shuffle of the tide” should be the most important issue for Chinese cabinet companies at the moment! I believe that the Chinese cabinet industry has taken steps. Into the "service competition era" and "brand competition stage", cabinet companies in service innovation and product differentiation are still promising!