Wooden door market uncertainties are mainly external

The economic situation of the wooden door market this year will be better than last year. Uncertain factors will mainly come from the outside. Foreign demand will remain relatively low, and there will even be a risk of deterioration. Wooden door companies need to do a full response.

Since last year, the sales in the pan-home market continued to decline. Although early this year, the real estate market across the country showed signs of recovery, the general decline in the performance of the pan-home industry has not yet been effectively controlled. In particular, major brand stores in provincial capitals continue to evacuate wooden doors. These brand stores were once the “golden ports” that wooden door dealers dreamed of, and dealers needed a variety of means such as public relations to be able to enter the country. Today, brand stores have to put aside their positions and accept small brands that have been rejected.

This change shows that consumers’ purchasing power is declining. In suburban counties, hypermarkets have also been affected by weak consumer spending. The various stores used all kinds of activities, such as advertisement wars, promotion wars, star promotions, cash back purchases, and subsidy fuel expenses, but they were unable to prevent the decline in sales and the withdrawal of businesses.

The continuous changes in the market are enough to show that the traditional single production model has not adapted to the current market, and the wooden door companies are the way out. Many wooden doors enterprises have realized this and have begun to change their business model, transforming from the original single production model to the overall supporting model.

At present, many wooden door home markets are still in a relatively depressed state. It is not uncommon for dealers to close down, close doors, or change brands or even transition. Those low-end and mid-tier companies with declining sales and gradual reduction in the number of dealers are struggling. Since 2008, the cost of woodworking and price of wooden doors in the Mainland have increased more than that of coastal cities such as Guangdong. Even ordinary workers are hard to find, and those with slightly technical expertise have higher requirements for treatment. As a result, the cost of human resources for wooden doors has increased a lot, virtually increasing the operating costs of wooden doors. The haze over the wooden door industry last year has not yet dissipated. The home market this year is even less optimistic. Difficulties in the market, the departure of workers, the increase in prices of raw materials, the continuous rise in gasoline prices, and the increase in logistics costs by 10%. These all make businesses extremely miserable. Some custom wood door owners can not help but feel sorry to do business difficult to do home business more difficult.

Some experts predict that this year will be the key year for custom home industry reshuffle, and low-end companies that do not have much working capital will be eliminated. Contrary to the above phenomenon, the high-end solid wood home area has not only been affected by the downturn in the home market, but has also achieved a 20%-40% performance increase. A number of solid wood home solutions responsible person said that high-end products have not been affected by the market. High-end consumers are not concerned about prices, but about quality, processes, services, design schemes, and so on. As long as the bidding scheme is satisfied with the customer, other details are well resolved.

One side is seawater, while the other side is flame, and the market presents polarization. As a result of the overall home furore, the pressure felt by companies that produce wooden doors or staircases and floors alone will increase, and they will even gradually withdraw from the market. Withdrawing from stores is inevitable. The cost pressure of the market will weaken the operating profit of the company. In order to have better development in future operations, it is critical to do cost management, human resource management, and price system management.

Professor Yuanyuan Liu, Associate Dean of the School of Economics at Renmin University of China, pointed out that the Chinese economy will continue its momentum of recovery in the fourth quarter of 2012 in 2013, with the continuous fermentation of the renewal effect, the crackdown on real estate difficulties, and the mild external environment. With improvement and financial distress easing, China’s macro economy will surpass the “new normal” and enter the “second-fastest growth period”. For 2013, although the external environment still faces uncertainties, it is generally expected that the economic situation will be better than 2012. Chen Deming, Minister of Commerce, said that in anticipating the foreign trade situation next year, the situation in the next year will be better than this year, and the second half of next year will be better than the first half.

Many laymen believe that this year's wooden door market economy will be better than last year. Uncertainties mainly come from the outside, foreign demand will still be relatively low, and even have the risk of deterioration. Wooden door companies need to do a comprehensive response.

The wooden door market is undergoing a “shuffle” process. A large number of small-scale enterprises that do not have R&D strength or technical strength will survive even harder, and manufacturers with strong R&D strength and innovative technologies will become more powerful and further polarize.