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The capacity process of the cabinet industry is becoming more and more severe, and transformation and reform are imperative

by:Hench Hardware     2021-08-26
The cabinet industry has experienced more than 20 years of development in China. In recent years, the market growth rate has gradually slowed down, but the output of enterprises has not declined, and the problem of overcapacity in cabinets has become increasingly prominent. In addition, due to the environmental impact of high energy consumption and high pollution, energy conservation and emission reduction have become a reality that enterprises must deal with, and this will inevitably lead to an increase in the threshold of the cabinet industry. According to industry insiders, breaking the bottleneck of industry development can only be achieved by improving product quality and the company's own technical strength.

   market relationship oversupply overcapacity in the cabinet industry

   In recent years, the cabinet industry has changed from the past and has gradually entered a bottleneck period of development, which is closely related to rising raw material prices, logistics costs and labor costs. In fact, in recent years, foreign developed countries in Europe and the United States have also transferred their low-end products to third world countries such as China due to the rapid development of production technology and high domestic labor costs. They only produce some high value-added products themselves. From the domestic situation, the cabinet industry in the eastern region is gradually shifting from south to north and from east to west. For example, my country's Sichuan Province, from the perspective of product production scale and enterprise sales, has become a major production province of cabinets, and a large western production base has been formed in Sichuan. However, from the overall situation, due to the slowdown of the entire market economy, the domestic market demand is not strong, and there are many self-built markets in the country, and the distribution range is also very wide. At present, the cabinet market is in a situation of oversupply, and many products are unsalable.

  Industry insiders said that if the cabinet industry wants to seek breakthrough development, companies are required to conform to the market situation, not just to be satisfied with mass production, but to develop customized business according to the individual needs of consumers, and to ensure good product quality. On the basis of, pay attention to the original design of products and create unique craftsmanship. Some experts said that if China's cabinet market is to grow bigger and stronger, transformation and upgrading are the key. In the past two years, custom cabinets are on the rise, and personalization has become a development trend.

  Environmental protection and quality become the key to transformation

   At present, energy conservation and environmental protection have become a must-do task for many industries, and the country has issued corresponding policies one by one. For the home furnishing market, the environmental impact caused by high energy consumption and high pollution has become increasingly serious, and energy conservation and emission reduction have become an important means for enterprises and businesses to compete. And this trend will lead to higher barriers to entry in the cabinet industry.

   It is understood that although China’s cabinet industry has undergone more than two decades of development, some enterprises have gradually formed serialization, standardization, and brand management; however, compared with the slightly lower quality production standards in China, they are not in the face of international standards. Not all cabinet companies can make rapid breakthroughs. For example, hardware accessories must produce products that meet export specifications, and the production pressure has increased sharply.

   The development of some domestic cabinet manufacturers is under the extensive economic model, at the cost of resource waste, energy waste, and environmental pollution. As the country vigorously implements energy-saving and emission-reduction policies, for manufacturers, it means the improvement of quality and the strengthening of technological innovation.

   In addition, with the improvement of consumers' living standards, the requirements for energy-saving and environmentally-friendly products are also increasing. As a necessities of life, cabinet products will inevitably be continuously improved and upgraded with the needs of consumers and changes in the market environment. This will also be an important opportunity for the industry to reshuffle.
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