Floor sales battle waiting for "5.1 season" arrival [hot spot]

Floor "promotional war" consumers are less interested in cold

"51" has not arrived yet, and the sales promotion campaign in the flooring industry has already begun. "5.1 large-scale promotion Raiders, after this "spring", there is no such "price"; into the store are to enjoy seven surprises, and can win lucky awards; floor business is taking this great opportunity to globally listed new floor products, 0 Yuan buys floor activities..."

If a certain merchant launches an event as low as 20%, consumers are no longer excited. The first thing he wondered was that the activity meant that all products in the audience were all 30% off, or 1 or 2 products were 30% off; or only 3% off, most products were 70% off, and so on. These concerns are only after the consumer has passed. There are also consumers who say that some businesses do promotional activities are actually discounted after the first price increase, and it is entirely because of consumers. All these things, consumers have a "tired" character!

An industry source revealed that now when consumers enter the store shopping, in addition to picking the brand, the most valued are those who have discounts, whether it is cheap. In fact, there are so many things that can be accounted for in the environment. In the environment of rising raw materials and labor costs, corporate profits have already been squeezed. It is normal for small profits and quick sales to come every year, but it is not always possible to provide shocking prices. Make yourself bleeding.

Such a wide range of promotional methods, do not know the business is tired? Is not bitter? According to Mr. Zhang, general manager of a floor Shenzhen marketing, “May Day promotion, most of the businesses are only earn personal gas, win a sales volume, profitability of large enterprises, there is no profit at all.” Saying only buy wrong, not Will sell wrong. In the face of numerous marketing promotions on the market, consumers are also tired.

Since promotional businesses do not make money, why do they still do it? According to industry analysts, this is forced by peer companies, think about the storefront next to the left and right sides are doing promotions, traffic transmission, but your store no one patronize, can not do it? Not only does not do not have the profit, even the sales volume does not go up. Therefore, promotion must be done. This is the inevitable result of competition among Chinese companies.

In turn, as the competition intensifies, a price war will inevitably occur. The consequence of the price war will be the dilution of corporate profits. In the end, the "promotional war" evolved into a contest of corporate strength. Enterprises with poor strength and weak foundations face price wars or opportunistic or frequent closures.

There are many companies with money, and there are not many companies that are really willing to make profits. At present, many flooring companies are in a stage of rapid development. What they need is more market share to enhance their position in the industry. This is why businesses at this time are willing to reduce their profitability to meet consumer prices. Demand.

Flooring raw materials prices rose, industry is in a vicious circle of competition

The home building materials market has “buzzed up”. After the prices of ceramic sanitary ware, cabinets, wooden doors, etc. have successively increased, the price of wood flooring prices has recently come to the fore. According to Ding Hua, Secretary-General of the Chongqing Flooring Association, in the depressed market and fierce competition, businessmen are afraid to increase floor prices. However, compared with the same period of last year, the current increase in the price of imported wood reached more than 10%. In addition, the supply of timber resources was in short supply, and the operating costs such as freight and rent increased. The operating pressure of businesses was further increased, and the price of solid wood and multi-layer solid wood flooring could not be avoided. .

In the case of rising costs, the floor price did not increase substantially for a full year. “We have been trying to eliminate the upward pressure on cost from the inside, but it is still very difficult at present.” Peng Jianming, general manager of St. Vincent Flooring in Chongqing, said that in 2011, the sales of all floor brands declined compared with the same period in 2010, The wishes of large-scale festivals are razor-sharp, but the cost rises so fast that companies generally face a survival crisis. Anxin Floor, Chief Marketing Officer of Chongqing, said that if the price does not increase again, it is indeed facing survival difficulties, price adjustment is helpless.

The main reason for the loss is that various costs have risen too fast, but the floor price has not risen. Chong Xin, Marketing Director of Nature Floor Chongqing, calculated a bill: the purchase price of flooring raw materials has increased by at least 30%, and the quotation in 2011 has risen to 700,000 yuan/ton; the rent of Chongqing's mainstream home stores has also increased dramatically. The rent for square meters has generally risen by RMB 30-50/month, and the rental cost alone has increased by at least RMB 100,000 for only one year in a shop. The costs of workers' wages, logistics, and after-sales services have also increased significantly. Taken together, in 2011, the cost per square meter of regular brand flooring companies rose by an average of more than 20%.

The disruption of the normal market order by miscellaneous and shoddy products is also the reason for the current industry difficulties. Feringale Chongqing Yang Liangwen said: The regular brand, the quality meets the national standard, has the perfect after-sale service strengthens the floor, the lowest sale price will not be lower than 80 Yuan/square meters; And the miscellaneous brand inferior product because of the quality, after the sale does not meet the standard, 49 yuan/square meter is also sold, causing misleading consumers and leading to vicious competition in the industry, causing great impact on the regular floor brands.