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Go to the countryside or go up the mountain, high-end cabinet brands must not blindly sink channels

by:Hench Hardware     2021-09-10
In recent years, as market competition continues to intensify, the dispute over channels has gradually intensified. In this situation, many cabinet companies have turned their attention to third- and fourth-tier cities, and the sinking of channels is becoming more and more obvious. Moreover, with the help of the accelerated urbanization process, the first batch of cabinet companies entering third- and fourth-tier cities have already tasted a lot of sweetness. As a result, more cabinet companies have launched plans for channel sinking, and even some high-end brands have such plans. However, is the channel sinking suitable for all cabinet companies? Does the high-end brand 'Going to the Country' have a future?

   High-end cabinet brand positioning is too high, it is more difficult for the channel to sink

   Looking at the current market situation, the market share of low-end cabinets and high-end cabinets is about 1:3. Low-end cabinets have gained market recognition with their price advantages and product advantages. After forming a brand effect in the first-tier cities, low-end cabinet manufacturers have decisively made efforts in the second and third-tier markets and achieved success.

   Looking back, the development of high-end cabinets is not so smooth. The time for high-end cabinets to sink into the second and third-tier markets is not ripe, and fourth-tier cities are even afraid to think about it. The main reason is that high-end cabinets are expensive. Consumers in second- and third-tier cities have limited income. Most of them are workers and farmers. Only a small part of high-end consumers will choose to buy high-end cabinets with higher prices.

  High-end cabinets should go higher and out of the international norm

   High-end cabinets, as high-end consumer products in furniture, have a high added value. Many mid-to-high-end customers have regarded high-end cabinets as their first choice for home improvement. With the increase in consumer income and the guidance of the country’s consumption stimulus policies, in the future cabinet market, high-end cabinets will surely occupy a certain market share, and the market share will become larger and larger, but the overall development speed will not be too high. Quickly, it is still dominated by consumer groups in provincial capitals.

   It is understood that in the domestic market, many high-end cabinet dealers still focus their sales on big cities. They believe that the consumption level in big cities is relatively high, and the consumption power of home decoration is relatively strong. In addition, the economic strength of big cities is relatively strong, the construction speed of cities is fast, and there are many projects. For all dealers, new buildings and new buildings, large and small, are indeed a very attractive 'cake'. However, competition in first-tier cities is fierce, and it is very difficult for dealers to develop.

   In fact, after years of network layout, many domestic low-end cabinet brands have firmly occupied the second and third-tier cities and gradually sink their channels, penetrating the fourth-tier or even lower market. It is relatively difficult for high-end cabinet manufacturers to succeed in the second and third tier cities or lower markets. Therefore, high-end cabinets might as well continue their high positioning, not only 'going to the countryside, Rush to the world, step out of your own international model!
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