Compared with previous years, the promotion scene in 2012 is more lively. The downturn in the wooden door industry has made the wooden door enterprises have to be more optimistic about promotional concessions , promotion meetings, etc., and to some extent, it has become a trick for wooden doors enterprises to ease business pressure. The wooden door brand is planned to launch promotional activities for the overall planning of the enterprise. Some wooden door brands simply promote the promotion, which not only wastes resources but also achieves the expected results.
These activities make the Chinese wooden door market look hot, but in reality it is overdrafting the future of the entire industry. If, in the past, the high-speed development of the wooden door industry, the industry's many competitors and overcapacity will force some manufacturers to cost. Selling their products even at a price below the cost, and these actions are just a matter of expansive to expand the market size and seize market share.
However, the price war that has now occurred in the wooden door industry has begun to change. In light of the current overall environment of the wooden door industry, some companies are somewhat ruined. From catching the big and small festivals, changing various names to promote, to inventing various festivals to promote, and even if there is no name, as long as the consumers arrive at the store, do not open the clerk to discount first...
Along with the market downturn, the domestic wooden door industry has evolved from a previously rational price war to a vicious price war of “selling for salesâ€. In this year's market situation survey, many companies have told us that the overall sales volume is growing, almost 10%, and 30% better, but the overall profit is declining.
Wooden door products promote the market without stagnation
In fact, in recent years, the cost of wooden door products has been rising rapidly. From labor cost, production cost, raw material cost, transportation cost to store cost, the price of many wooden door businesses is declining, fearing that it is a three-year-old child. Calculate whether this is a loss-making business. However, in the face of thousands of domestic wooden door manufacturers, many of them are small in scale, lack of funds, and low value-added of main products. Once the production capacity is excessive, in order to pursue sales volume and maintain the sales income level, how can these companies reduce their prices at the expense of blood? But this seemingly hot group buying, wooden door festival, promotion feast, bring to the enterprise, bring to the industry What kind of future is it?
An industry veteran pointed out: "The more aggressive the price war, the more it can only show that the company lacks real competitiveness. In an extensive competitive environment, companies can't provide more value to customers and can only cut prices. Marketing of many Chinese companies. The characteristic is that it is not good at combination punches, only punches and kicks." And "In the constant price war, the consumer's expectations are changing. I originally planned to cut the price and then go to buy, but just bought it and found that the price has dropped. After a few rounds, consumers are watching, sales are not going up, and the market is stagnating."
As a result, consumers, distributors, and suppliers will all be implicated, and enterprises will be affected by the enemy on all sides. The ultimate damage will be the development of the entire industry. In this regard, Lu Xiongwen added that the company needs fixed costs, which depends on the support of the financial system. If the price and cost are similar, the profit is limited. Enterprises that want to fight the price war must first see if they have enough strength to persist. Squeeze out other competitors and then integrate them...
Because the wooden door market in the first-tier cities is basically saturated, coupled with the current restrictions on purchases and the regulation of the property market, consumers do not have much desire to buy, no matter how the wooden doors are promoted. In addition, wooden doors are durable consumer goods. If quality or other problems do not arise, it is difficult to convince them to replace the wooden doors.
If at this stage, group purchases and promotion meetings can also drive a group of pre-housing houses or consumers with improved demand to buy wooden doors, then when the economic downturn lasts longer, the number of buyers is less and less, and small profits are more. It can't be maintained, how should wooden door enterprises be on their own? And where will the wooden door industry go? This question deserves to be pondered by all wooden doors.
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