In the coming 2019, China's household building materials industry has witnessed too much uncertainty and market changes, which still seems to have no intention of stopping. 2020 should be more challenging than we think. This challenge is not only from the challenge to the industry and market, but also from the self challenge of practitioners in the whole industry of home building materials.
Thanks to the acceleration of China's urbanization process and the arrival of the era of consumption upgrading, the performance demand and grade demand of the door and window products are becoming more and more detailed, which ushers in a sustained and high-speed growth period for the door and window industry. In the next decade, more than 11 billion square meters of doors and windows in China will enter the renewal period, and the market volume formed by the reconstruction of existing building doors and windows will reach 10 trillion yuan. The industry will pull the car industry, and the middle and high-end door and window market is becoming another "big cake" in the household building materials industry.
So how can practitioners prepare for the unknown market?
1. First of all, we need to know what problems the door and window market is facing.
01. The door and window industry tends to be mature and the competition becomes more and more fierce
By 2019, the door and window industry has entered the initial stage of maturity, and the degree of market competition is becoming increasingly fierce, which also leads to the current reduction of the profits of enterprises. With the development of the building door and window market, the market is developing in a diversified structure, and the application of new materials and technologies will inevitably lead to more new products. Compared with other industries, the door and window products have less product differences and more fierce competition.
02. Industrial structural adjustment caused by industrial transformation pressure
Affected by the industrial development cycle, the door and window industry began to transform its industrial development mode. Production and manufacturing enterprises from decentralized to intensive, from extensive to lean, from energy consumption to efficiency. It is inevitable that there will be transformation pains in this process, but it will be good for the future of society and industry. Through the transformation, on the one hand, the industrial structure is reconstructed, on the other hand, the production capacity is concentrated to the head enterprises, and the released market is taken over by the head enterprises.
03. Arrival of horizontal integration period of single category Enterprises
Limited by the output capacity of their own products, there are many single category development enterprises in the market, and the head enterprises are affected by their own performance pressure, which is bound to find a new growth path. Under the background that the market transformation cannot be realized in a short time, horizontal acquisition, merger or reorganization of some industry-related enterprises has become the simplest way to improve market share or sales.
04. Further collapse of retail market
The retail market has always been the main contributor to the cash flow of door and window enterprises. In 2020, and for some time in the future, on the one hand, affected by the refined decoration mode of real estate, on the other hand, affected by the consumption upgrading, consumers have found new consumption channels, such as decoration companies, designers, home decoration Bureau reform, etc. This has largely dispersed consumer demand, consumers are not limited to a single retail market, the traditional sales channels have been gradually disintegrated.