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Take advantage of the supply-side reform to welcome the development of cabinet enterprises

by:Hench Hardware     2021-08-14
The essence of the supply-side reform is the continuation and focus of the 'Comprehensive Deepening of Reform' of the Third Plenary Session in the field of factors. The current blueprint has been rolled out, and the future prospects are exciting. For traditional manufacturing industries such as cabinets, how will supply-side reforms affect the industry? This article attempts to interpret from both real estate and industrial regulation.


   Real estate destocking will open up a new market for cabinet companies


   'Real estate destocking' is one of the main investment opportunities brought about by supply-side reforms. 'To resolve the real estate inventory and promote the sustainable development of the real estate industryPromoting the sustainable development of the real estate industry can drive the development of the downstream industries of home furnishings such as cabinets, dissolve the production capacity of these industries, and effectively stimulate employment.


  According to the statistics of the Chinese Academy of Social Sciences, the current total inventory of commercial housing in China is about 3.996 billion square meters, of which the existing housing inventory is about 426 million square meters. The sale cycle is 23 months, and the off-plan housing inventory is about 3.57 billion square meters. The sale cycle is 4.5 years. , Inventories in third- and fourth-tier cities are still high. If follow-up policies continue to be implemented in various places (including monetization of affordable housing, increased tax reduction and exemption, subsidies for migrant workers, etc.), real estate companies located in third- and fourth-tier cities will fully benefit from the process of destocking in third- and fourth-tier cities . After the digestion of these real estate inventories, it will inevitably bring a good increase in consumption to the cabinet and other home furnishing markets.


   Survival of the Fittest, Promote the Upgrade and Transformation of the Cabinet Industry


   At the industrial level, eliminating zombie companies, resolving excess capacity, and stimulating corporate vitality are the key areas of 'supply-side reformAs China's economy enters a new normal, the oversupply of the cabinet industry has begun to emerge, and overcapacity has begun. Many dealers have inventory that can be sold for almost another year. Effectively resolving overcapacity has become the top priority of the cabinet industry.


  Resolving excess production capacity is undoubtedly an opportunity for development for cabinet companies with scale, strength and technology. But if you want to get a share of the trend of the times and become the winner in resolving excess capacity, you must first realize the gorgeous turn of 'transformation and upgrading'.


   In May 2015, the State Council promulgated 'Made in China 2025On the one hand, traditional industries are facing transformation and upgrading, inter-industry mergers and acquisitions will accelerate, and there is a huge demand for Mu0026A loans and investment banking services. On the other hand, new industries, new technologies, new formats, and new business models continue to emerge, including the Internet, cloud computing, big data, information technology, bioengineering, new energy, environmental protection and energy conservation, and the development of modern service industries in the ascendant. If cabinet companies cannot transform and upgrade as quickly as possible in this process, and form their own competitive advantage in a certain aspect, they may become one of the overcapacity to be eliminated.


  Supply-side reform involves all aspects. This article only analyzes the impact of supply-side reform on cabinet companies from the property market and industrial regulation. In general, the current reform situation is good for the cabinet industry. Only by continuously enhancing their comprehensive strength and providing consumers with high-quality products and services can cabinet companies achieve transformation and upgrading and achieve rapid development in the reform environment.
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