▲Wen Jun, chief strategy officer and assistant to the president of Huanai Home Furnishings
Building brand competitiveness from a strategic perspective
Today, China’s GDP is 90 trillion, and the United States’ GDP is close to more than 120 trillion. Our growth rate is 6.6%, and the United States’ growth rate is 2.4%. What follows is a transformation of the competitive positions of the two countries. From a micro level, the competition between enterprises is a competition in the micro field. The same is true for ceramic enterprises, because the market share may roughly reach 200 billion. 300 billion, which includes consumers’ continuous improvement in living standards and housing, and this share will remain relatively stable. In the process of market competition, whether it is upstream manufacturers or distributors, they are still competing in the channel. Competition at the brand level is actually competition at the corporate strategic level, just like today's strategic competition between China and the United States between major countries. At the micro level, it is marketing competition, which can be regarded as a challenge of life and death.
In 2018, nearly 80 manufacturing companies in the ceramic industry closed down last year. This data is very scary, and there are also companies with a scale of more than 2 billion in the ceramic industry. If you are very familiar with this industry, more than 20 Billions can be ranked from 1 to 20. Therefore, the discussion of the micro level in this industry will still be in the process of very fierce competition and evolution in the future.
This is the competition faced by the entire circulation field of building materials in China. Taking the Beijing market as an example, some brands inexplicably disappear from the Beijing market every year, and there are still many brands that have not logged into the Beijing market. Because the Beijing market is a very high-level operation market, a brand in the Beijing market can reach 100 million before it can maintain its capital. It is very difficult for a large number of upstream companies to break through 100 million in the Beijing market, and the talent, rent, and competition methods faced by Beijing are far more demanding than those in second- and third-tier cities.
Business competition must clearly understand the laws behind it. A brand and channel are competitions at the strategic level of an enterprise, not at the micro level.
Between a brand and a channel, whether it is ceramic tiles or bathroom ware, or even custom home furnishings, especially the customization industry, China's home furnishing field has been lined up in large numbers, including in the ceramic industry, like Mona Lisa, Dongpeng, Marco Polo, etc. have gradually entered the capital market and become TOP20 companies. They have built strong channel power in their competition. Take Marco Polo as an example. There are more than 3,000 specialty stores across the country, and all the channel resources of hundreds of millions of dealers are in it. It can be seen that TOP-level enterprises are active in the market, and their channel resources, dealers' own capabilities and quality, and the number of stores are all very impressive.
If you walk along the Fourth Ring Road in Beijing, you can see that there are no more than ten Easyhome stores in each shopping mall that mainly use ceramic tiles. This is a very cruel statistic. The same goes for bathrooms. And unexpectedly, Red Star will also make many commercial attempts, such as investing in many supermarkets and fitness centers. The logic behind this is that there are fewer and fewer high-quality brands and top-level brands, and many brands cannot enter such markets and commercial stores. Where did all that large commercial space go? So he needs other business operations. The logic behind Juranzhijia's retail business is actually a threshold requirement, and most ceramic brands cannot enter this door. On the one hand, enterprises are facing life and death, and on the other hand, for commercial space, they can only obtain returns through other business models. This is a very cruel strategic dimension.
From a strategic perspective, it is a matter of brand and strategy. At the strategic level, an enterprise's strategy, organization, and culture are the three core pillars of the entire enterprise's competition. There is a very clear concept in strategy, whether from the perspective of strategic competition or strategic value investment, including what Buffett said about considering strategic investment and price investment from the perspective of capital, all of which Brands and products return to a very clear, simple, and differentiated functional value of a product. Therefore, from this perspective, the concentration of brands in the ceramic industry will accelerate in the future, because for the ceramic industry, it can meet the needs of For two basic needs such as design and functionality, a few brands are enough. So, other brands have no chance? There is still, the background of this opportunity, whether it is thinking from a strategic level, from a design dimension, or fromIn the consumption dimension, there are still many channels and models that can be innovated, but of course the traditional path is no longer feasible.
▲Summit site
What are the changes and problems in today’s channels?
First, tradition fails
From the perspective of the factory, the factory uses large-scale manufacturing and marketing methods to find dealers, and then supplies consumers through differentiated channels.
Nowadays, many decoration companies still choose TOP brands, and they are moving closer to resources and TOP brands. Many decoration companies tell us that the ceramic tiles we choose are this brand, and the bathroom ware we choose is this brand. Brands, such as the wooden door industry, used to be companies with weak brand names. Now there are not many well-known brands. The same is true for customization. There are only six brands that we can count, and there are others. ? Of course there is, but it is very difficult to do it through traditional channels and marketing methods. The differentiation of Chinese cities, the differentiation of eastern and western cities, including the differentiation of urban consumption, means that many brands still have a lot of room in the market, and some intermediate brands still have huge room for regional competition. For example, in a certain competitive area, Marco Polo may not necessarily be number one. The sales of many brands are far greater than it. It may be that the consumption difference in that place is different from that of Beijing, Shanghai, and Guangzhou. There is huge market space, but as The difference in consumers' understanding of brands and products will become smaller and smaller. Everyone will think that the difference in consumption will become smaller and smaller.
Just like the Internet solves the problem of information asymmetry, consumers’ understanding of brands and products will become more and more profound in the future, so in terms of differentiation of the entire city, there will still be Follow the principles and trends of brand industry concentration.
Second, the fission of channels
What changes will happen to channels in the future? In the field of e-commerce, you can see some brands that are often not seen at the market terminal, and there are already such market shares in some product segments. These are some of our traditional channels, and today our channels have undergone a lot of fission. Industry concentration is the ultimate trend of industrial competition. If you fail to enter the TOP, you will lose your opportunity.
What is the nature of these channel fission? From factories to marketing to distribution, everything actually revolves around one person - the consumer. Today's consumers have undergone fundamental changes compared to those in the past: consumers born in the 90s and 2000s do not want to buy products because they feel too tired. They can choose a variety of products through a mobile phone and a computer. He likes something like that, but the whole direction has changed. What he likes may be more niche and designer brands. Decorating a house is not like the traditional Chinese style of those born in the 60s and 70s, but a mix and match style. The entire consumption pattern has changed, the perception of consumption and the way of shopping have changed.
All sources of marketing are insights into consumers and influencing consumer decision-making through specific methods. This is the ultimate answer to channel fission and brand upgrade in the future. The answer is to understand consumers and guide trends. So where should marketing go? What kind of products need to be produced? What channels will compete with? This is the final answer. In the past, competition was about producing something and selling it to consumers? Do consumers need this? Not necessarily, so this is a setting for our entire strategic competition dimension.
As a channel dealer, how can we achieve common growth with these brands? How to deal with the whole assembly market? Nowadays, channels are fissioning. If we still cannot escape from the dimension of dealer channels, how can we escape from the dimension of naming our attributes as a dealer? We must also choose a new competitive landscape.
▲Summit site
Faced with the current situation, is there any chance of overtaking in corners?
First, as a strategic competition, the first thing is about product issues. Today's top companies have an increasingly wider range of product designs. Similarly, there is also differentiated competition. The subdivision of product capabilities in this differentiated competition is still a channel that can be explored. Nowadays, there are also real cases, such as subdivisions such as marble tiles. Is it possible that other small categories of ceramic tiles will be subdivided in the future? Or can there be niche products in the design field? And these are very big opportunities.
The second is the terminal level. This terminal is not a store in the building materials market in the traditional sense, but a virtual terminal that can be purchased by consumers if it has a relationship with them. For example, in today's building materials market, 20 people enter your store a day, and the transaction rate is 30%, which is considered to be six people. Imagine building a building materials market into Guomao? Of course, the rent in Guomao may be about three times more expensive than in the building materials market, but it is possible for 200 people to enter Guomao. What is the transaction rate for 200 people? For 60 people, building a store in the building materials market, 200 square meters is already considered small, but can we use new technological display methods to conduct virtual displays in China World Trade Center? The intelligent operation of the design software can realize a complete display of all product space in a store of 80 square meters. It can also be realized through marketing means. Whether it is online sales or small programs, the process of products to consumers can still be realized, so the terminal must escape the traditional terminal.
Third, in the segmented industries, for example, when we talk about decoration, for example, Vanke’s supply chain, everyone knows that in real estate, house decoration, Building a house requires a lot of supply chain management, and a dedicated procurement department is a very large system, which is a very cumbersome matter. So is it possible to share Vanke's product supply? Its construction has been very complete, and it can be shared. You don't need to build such a huge thing anymore. Its positioning is very clear, and it is outside the TOP20. Country Garden wants to build it itself, so in this segment, the ceramic industry still has huge room for development.
Focusing on one channel is the secret for many companies to achieve overtaking in corners in terms of industrial channels.
Without innovation, there is no opportunity. China is now constantly talking about avoiding the income trap of middle-class countries. The core issue behind it is to create and cultivate the innovation ability of all people. With the support of innovation of ceramic companies, the vitality of ceramic brands can last long after the fission of terminal channels.
▲Summit site
Congratulations again for being on the list of the top ten brands of Chinese building and sanitary ceramics!
▲Sun Xiaoyong took a group photo with the top ten ceramic brand award-winning companies
List of winning brands in the 2019 "China's Top Ten Architectural and Sanitary Ceramics Brands" list:
Top Ten Ceramic Brands in 2019
Wells Ceramics, Qianghui Ceramics, Shunhui Ceramics, Nengqiang Ceramics, Jiajun Ceramics, White Rabbit Ceramics, Golden Silk Yuma Ceramics, Big Horn Deer Super Wear-resistant Marble Ceramics, Tongli Marble tiles, Lion Ceramics
Top Ten Bathroom Brands in 2019
Jiumu Sanitary Ware, Yigao Sanitary Ware, Imperial Sanitary Ware, Eagle Sanitary Ware, Langjing Sanitary Ware, Hengtong Sanitary Ware, Huihuang Sanitary Ware
Top Ten Tile Brands in 2019
Jinyu famous ceramic tiles, Lijia ceramics, Laideli ceramics, Dajiulu super wear-resistant marble ceramic tiles, General ceramics, Huiya ceramic tiles, Asian ceramic tiles, gold medal Asian ceramic tiles, diamond ceramic tiles, Shuangqing Tiles
Top Ceramic Brand of the Year 2019
Nobel Ceramics, Marco Polo Ceramics, Nengqiang Ceramics, Qiangpai Ceramics, New Roman Ceramics, Ruyi Ceramic Tiles, Haolaideng Ceramics, Jinsilu Ceramics
Top 10 modern brick brands in 2019
Jinyi Ceramic Tiles, Owen Lai Ceramics, Yao Ming Modern Tiles, Karona Ceramics, Bao Ensha Ceramics
Top Ten Brands of Functional Bricks in 2019
Marco Polo tiles, Nobel tiles, Qianghui ceramics, Taotao swimming pool tiles, Junyue tiles, Penguin tiles, Jianpai healthy tiles
The top ten brands of wood grain tiles in 2019
Mona Lisa tiles, Marco Polo tiles, Loulan tiles, Smic tiles, Trento ceramics
Top 10 antique brick brands in 2019
Jinyi ceramic tiles, Marco Polo tiles, Nobel tiles, L&D ceramics
Top 10 porcelain tile brands in 2019
Nobel Ceramics, L&D Ceramics, Huaguan Ceramics, Imero Ceramics, Bo Porcelain Precision Tiles
Top 10 marble tile brands in 2019
Jianyi marble tiles, Marco Polo tiles, Big Horn Deer super wear-resistant marble tiles, New Roman Ceramics, Shenzhouxing Ceramics, Yiwante Ceramics
2019 Designer Recommended Brands
Marco Polo tiles, Nobel tiles, Xinzhongyuan ceramics, Jinduo tiles, colorx
2019 Project Recommended Brands
Nobel Ceramics, Dongpeng Ceramics, Marco Polo Ceramics, Jinduo Ceramics, Shuangqing Ceramics
