Analysis of the survival of small and medium-sized sanitary ware enterprises in 2012

The bathroom industry faces not only the impact of market recession, but also the pressure of labor difficulties in China's vast areas, as well as the rising costs of manufacturing such as land, materials and logistics, plus the government and social aspects of the sanitary ware industry. extrusion. In the future, sanitary ware companies will inevitably face the situation that they have to transfer or upgrade to survive. This is no longer a slogan.

The chain reaction brought about by the expansion of stores Although the overall bathroom market showed a downward trend, but throughout the year, it is not difficult to see that the bathroom circulation stores did not stop its expansion. If the increase in sales in the past is in line with the growth trend of the overall sanitary consuming market, then the growth rate in 2011 will obviously exceed the growth of the overall market. This situation leads to three negative effects: First, at some levels In the second-tier cities with strong spending power, the disorderly increase of the stores has led to the over-exploitation of the market, and its circulation channels have shown an excessive tendency to some extent, causing distributors to take the brunt of the victims and their profitability. Great decline; Secondly, the difficulties of the distributors and the brand manufacturers to spend more resources to maintain the survival of dealers in the regional market, or lose the support of dealers in the market, the negative impact on the brand is self-evident; Third, the open market rate of stores has risen, which has a direct impact on the profitability of the stores. It also has a certain impact on the brand of the stores.

Although it is an undoubted strategy for circulation companies to rapidly expand the coverage of their channels through store coverage, this strategy and development should be consistent with the trend of market development. With the market shrinking, the growth rate of circulation stores will increase. Should slow down. Through the visit, some business operators believe that stores should be connected with manufacturers and distributors, and face the market's winter, should be a reasonable and orderly construction channels.

The factory channel contracted directly or “being” the direct market shrank, and dealers’ profit space was shrinking. Under such circumstances, it was difficult for enterprises to guarantee the high quality rate of channels, but instead wasted a lot of resources to maintain the survival of the original channels. Some companies with huge market channels and a large number of bad channels in the channels have become very large. In 2011, many Longgang brand companies began to integrate their existing channels effectively and adjusted for some regional markets that have not been profitable for years. However, from the perspective of brand influence, the cancellation of storefronts has a very large negative impact on companies and brands in the local area. Enterprises often do not take measures to withdraw from them, but take over the dealer’s storefront and switch to the company’s own business. The method of the camp operates the market.

Market "Ya Li" upgrade bathroom enterprise 2012 how to survive?

The direct marketing channels of enterprises are in fact not new measures. For example, Qu Mei and Mei Kemei are relatively successful cases. However, for some enterprises with weaker and weaker scales, there are still certain risks in direct marketing channels. The early input of manpower and material resources and the remote management in the later stages are the key factors that determine the success of direct marketing channels. Therefore, most of the companies directly select some first-tier cities, or the principle of proximity, most of the sanitary ware companies will first choose the domestic direct operation in big cities; for the first-tier cities, the purpose of the direct operation of enterprises is not only for simple sales, but also hopes. In the brand influence and demonstration play a certain role in promoting. But in the end, many companies are unwilling to try direct channels when the market is growing normally and the company maintains development. It can be said that many companies are compelled to choose the current situation when they are forced to do so and dealers are unwilling to continue to operate. Directed."

The risk of small risks in the crisis, whether direct operations or direct operations, including expansion of market channels into areas not previously involved, increasing the marketing efforts of high-end markets in first-tier cities, or some companies choosing channels to sink, etc. In 2012, companies hope to occupy a larger market area and seize more market share.

Only by increasing the crackdown will there be a higher chance of gaining a profit growth point. Only under the premise that the market shrinks, can we ensure the sound development of the company.

From another point of view, the market's depression has also brought some favorable factors to the company. For example, in the case of difficult investment, the stores have begun to choose to reduce rents. At the same time, the adjustment of the store's position also makes some mid-range brands have more. The opportunity is better than ever. Under such circumstances, companies can try some new regional markets. The reduction in costs will directly lead to a reduction in risk. This may be considered as one of the opportunities in the crisis.