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Cost increase is the main step, cabinet companies must also do a good job of competition planning

by:Hench Hardware     2021-08-12
In recent years, rising costs have always been the main step of the 'continuous riseUnder such multi-party pressure, cabinet companies are bound to change their own business strategies to deal with the complex and severe situation.

   Reasonable planning in high-cost competition

   First is the price issue. Because raw materials and logistics costs rise, prices in the whole society rise again, causing consumers to feel that their incomes have shrunk. At this time, cabinets cannot easily increase prices, which will directly lead to corporate profits. Decline, in this case, the cabinet industry can not care about the cost of competition. A few years ago, it has been advocating to reduce costs and reduce expenditures. At this stage, the thinking of cabinet companies is how to be invincible in the high-cost competition. Then it is to continuously innovate and upgrade in design, to be more precise in production, and to plan rationally in human resources. In short, it is the enterprise. Hardware upgrades enhance the core competitiveness of enterprises.

   Stable agents and services in first-tier cities

   Next is sales and service. The most important thing for cabinet companies now is to vigorously support distributors, because in the current environment, agents are prone to negative emotions and even consider exiting the market, so the most important thing for cabinet companies is It is no longer the past to open up the market, but to focus on maintaining the currently occupied market, and then consider opening up the market. So how to grasp the strength of support between new agents and old agents is a fairly realistic test for cabinet companies.

   is once again the development of the first-tier market. As the first-tier cities are subject to the greatest degree of real estate regulation, consumers in the market have a very serious wait-and-see attitude, which directly leads to a rapid decline in the cabinet market in the first-tier cities. For companies that have entered first-tier cities, although they have experienced a decline in sales and profits in the past year, consumers have already recognized the brand, but he just wait and see and did not abandon them. Therefore, at this stage, the focus of cabinet companies is to stabilize the first-tier cities. The agents continue to maintain, and in the 'wandering' market state, only those who persist to the last and stand the test can survive the cold winter.

   New entrants turn to develop second- and third-tier markets

   It is already difficult for cabinet companies that are new to the industry to find a living space in the first-line market. Unless they have strong strength and distinctive core advantages, don't take this risk, because companies that have entered the first-line are not necessarily In a profitable state, they are just maintaining their corporate image or other needs. The most important thing for new companies in the cabinet industry is to raise funds to develop their own production capabilities and to develop second- and third-tier markets.

  How to survive the survival crisis under such cruel market pressure depends on how the cabinet company chooses its own role according to its own script, how to use its acting skills to play this role vividly, in other words, who is positioned Okay, whoever persists to the end is the winner.
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