Mr. Yi Zhongtian has three sentences: "The current situation cannot be described, the future is unpredictable, and everything is possible", which is the best monologue in the era of stock fighting. As we all know, the market is getting more and more difficult, and how to reconstruct the growth engine is the primary problem that all walks of life, especially the home furnishing industry, need to face.
But no matter how difficult an industry is, there is a glimmer of light! The test is the manager's ability to capture strategic opportunities for growth!
In fact, through several market visits, we have also seen 6 major growth opportunities in the home furnishing industry during the current traffic exhaustion period, and today we will take this opportunity to dissect with you.
Opportunity 1:
Opportunities for the era of leading brands (relative monopoly)
From the perspective of the track form, any industry development competition includes four stages:
Phase 1: Preliminary Competition. The brands are mixed, and the product is highly satisfied.
Stage 2: Perfect Competition. The competitive pattern has been formed, and the gap between first- and second-tier brands is obvious.
Stage 3: Oligopoly (relative monopoly). 2-3 companies have a high market share.
Stage 4: Complete monopoly. That is, in the industry market, one is dominant.
Taking this as the standard, relative to the home, it is currently entering the integration period, which can be called a relative monopoly, and its opportunity lies in the new market, new channels, cost performance, and new experience (technology, efficiency).
For example, the sales volume of Moganshan Lanzhou's head dealers this year can even rush to hundreds of millions, and its core key is: capital, scale, turnover, and advertising, so that Moganshan plate occupies an absolutely leading brand position in the local area, and the growth is logical.
Opportunity 2:
Opportunities for uneven regional development
As you can see, China has an incomparably vast territory and different regional economic developments.
Based on the differences in regional social and economic development, the Chinese market has formed a multi-level and eclectic multi-level market: from the primary market in Beijing, Shanghai, Guangzhou and Shenzhen, to the secondary market represented by provincial capitals, and the tertiary market in provincial capitals in the central and western regions, to the fourth-level market represented by prefecture-level cities, and to the fifth- and sixth-level markets represented by counties and towns.
As a super-large market, China's market development path is basically the same based on the cyclical nature of the industry and the future development direction.
What does this mean? It means that in the process of regional market from multipolarization to homogenization, there are huge opportunities!
In the past few years, the opportunities for the low-level market and the lower-line market that have been discussed in the general sense of society lie in this.
That is, to take advantage of the time difference and information gap to see the future weather vane. During the window of opportunity, it will only be a matter of time before you use the experience of the high-tier market to position in the lower-tier market in advance, and then achieve growth!
This is also the connotation of the famous investor Masayoshi Son's time machine theory: make full use of the imbalance of development between different regions and industries, gain experience in developed regions, and then develop the equivalent of backward markets, as if sitting on a time machine, able to travel through the past and the future.
This is also the biggest contrast we felt when we visited the northwest market and the southwest market. At present, the northwest is still in the woodworking and distribution stage, while the southwest is generally in the furniture factory and retail stage.
Opportunity 3:
Opportunity for channel iteration
As a durable product in the home building materials industry, channel drive is its essential feature!
In a sense, there are only new channels, no new brands!
For any brand, the biggest risk in marketing comes from channel differentiation, and the biggest opportunity is also channel differentiation.
Lao Tang believes that one of the biggest risks in business operation is the change of channels, and many companies have not kept up with the change of channels and quickly opened up a gap with competitors.
Channel differentiation itself is the law of channel development, but for different enterprises, it has diametrically opposite effects.
To some extent, in the eyes of companies that cling to the old, it is a bottle of "poison"; And for companies that have the courage to embrace change, it is a "life-saving medicine".
The emergence of any new channel essentially corresponds to new capabilities. Great businesses have the ability to embrace new channels quickly.
To miss a channel is to miss an era. Only the more balanced the channel structure, the safer the brand.
Therefore, for home furnishing brands, walking on multiple legs is inevitable for the development of the industry, and it is necessary to guide dealers to think structurally from a single channel to an omni-channel.
Opportunity 4:
Opportunities for core capacity building
He Xiangjian of Midea has a very important sentence: the core problems to be solved by Chinese enterprises are still management capabilities, market capabilities, and brand capabilities. These three capabilities are essentially the core competencies of the enterprise.
Chinese entrepreneurs feel great danger in this era! After the growth dividends are gone, they are the first people to pick up the knife and change their lives. The successful experience of the past bonus stage cannot adapt to the current requirements, and requires us to have the ability to quickly recognize the essence!
Organizational development, innovation ability, brand driven, and digital transformation are all the core of future capabilities! Only ability can build barriers, transcend changes in the external environment, go through uncertainty, and move towards a long-term and upward road of sustainable growth.
So, we have to see a huge growth opportunity for core capacity building!
Opportunity Five:
Opportunities for category structural growth
What is Structural Growth?
Economist Joseph Schumpeter once defined structural growth as follows: structural growth is not a gradual improvement of the original business, but a new combination of multiple signature operations from the original single signature operation.
The structural growth of the category is driven by multiple categories, realizing the evolution from the first curve to the second curve.
We say: all great enterprises are successes one after another. And one of the most important ways to achieve succession is the structural growth of the category!
So is Apple! The same is true for the home building materials industry! Category structural growth will inevitably be at the core of future marketing efforts. Based on traffic synergy and category synergy, in addition to representative categories, related categories are also an important part of brand expansion, and the essence is to sell more.
Opportunity 6:
The opportunity to grab the share of small and medium-sized brands
At present, the advent of the era of China's real estate stock housing, the transition from the past seller's market to the buyer's market will further trigger the reshuffle of the home building materials industry, and the market concentration is expected to be greatly improved. This is especially evident in the post-pandemic era of the global economic downturn.
In fact, under the future stock competition, the home building materials industry is not cleaned out of local brands, but small and medium-sized brands. Small and medium-sized brands lack the advantages of capital, scale, team and technology, and gradually lose consumers, resulting in a rapid market share to the leading brands.
In addition, the gravitational effect of the market, like the waterfall effect, makes the high-end market naturally penetrate into the low-end market, and constantly seize the low-end market.
Why can many regional Moganshan dealers achieve a scale of 100 million?
The most important opportunities are:
First, we should attach importance to the preemption of the share of currency. For plate brands, the development of Moganshan has not killed its opponents, but it is constantly squeezing currency. The future must belong to the era of the brand.
Second, we should attach importance to the links of major currency merchants. Promoting currency to invest in the brand is the password to further expand the scale. The market is like a country, and how many talents can be recruited can achieve a large market scale.
Final words
In the era of fading dividends and sluggish growth, "surviving" is like a sword of Damocles hanging over the head of every Chinese entrepreneur.
As Ren Zhengfei said, "Staying alive is Huawei's highest and lowest program." ”
In an era where opportunities and challenges coexist, pessimists are always right, but optimists always move forward and often win the world.
Hope you find it inspiring!
The 13th China Guangzhou Custom Home Furnishing Exhibition and the 13th China Guangzhou Whole Home Custom Exhibition
The 13th China Guangzhou Custom Home Furnishing Exhibition will be held on March 27-30, 2024 at the Guangzhou Poly World Trade Center Expo. At the same time, it will also continue to provide an efficient exchange and cooperation platform for the industry to display high-quality products, attract investment and join, release new products, and discuss development strategies; Create a domestic customized home furnishing feast with integrated decoration, intelligent home, soft decoration and diversified design for the industry.
Exhibition time: March 27-30, 2024
Exhibition venue: Guangzhou Poly World Trade Center Expo
Guiding unit: Guangdong Custom Home Furnishing Association, Guangdong Wardrobe Industry Association
Organizer: Bojun Media
Exhibition area: 100,000+ square meters
Participating brands: 800+
Professional visitors: 350,000+ people