China's cabinet industry has experienced extensive and rapid growth in the course of more than 20 years of development, but it also left behind many historical 'stubborn illnesses.' In this important period of economic transformation, cabinet companies are also facing transformation problems, and must find corresponding development support points by improving their profitability.
cabinet companies have huge strategic space
Due to the large gap in economic development between regions, due to the dual structure of urban and rural areas, and because my country is at the bottom of the world industrial chain, the Chinese economy has huge strategic space. But for cabinet companies, occupying this huge strategic space is achieved through industry growth space. The growth space of the industry is mainly manifested in two aspects: one is the growth space of sales volume; the other is the growth space of sales value.
Sales growth is manifested in the continuous expansion of the market; sales value growth is manifested in the continuous upgrading of products. If an industry's market continues to expand and is accompanied by product upgrades, then the industry will show breakthrough growth, keep one head, and enterprise growth will not be a problem. If there are problems in both aspects, then, under the premise of weak industry growth, the company will inevitably be in a difficult situation.
The profit model of cabinet companies needs to be adjusted
On the one hand, there is a huge strategic space for the marketing of cabinet companies; on the other hand, the growth of the industry is compressed. This pair of entanglements reflects that cabinet companies are still immature and lack experience in grasping the relationship between corporate development and industry cycles. This requires cabinet companies to continuously adjust their profit models in accordance with the changes of the times.
While observing an enterprise’s profitability development ability, one cannot only evaluate the scale of its production factors. More important than the factors of production are new concepts and ideas with more economic value. If a cabinet company does not have new concepts and ideas that are self-contained, it cannot become a super company. Without these things, there will be no sufficient ability to integrate resources, and there will be no space for development.
When observing the profitability development of cabinet companies, the most important thing is the history and scale of investment in intangible assets by cabinet companies. The intangible assets referred to here include: intellectual property rights in newly developed products and processes, corporate brands, data materials, the company's own organizational operation mode, and human resource development capabilities, that is, training and appointment modes.
