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Shanghai New International Expo Center(SNIEC)

Only365Days Left from the Opening

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Tile market structure reorganization, channel diversification

In the past two years, the ceramic tile sales market has undergone great changes. Channels are no longer a problem of sinking. The building materials market that sinks to the terminal is also unable to see consumers. Some people even exclaimed: Where are the people who bought the tiles? It is normal that the off-season is weaker and the peak season is not busy. With the development of the building materials industry itself and the continuous changes in the economic and policy environment, as well as the rise of a new generation of consumer groups, the overall market demand may change at any time. In the future, how companies will stick to the existing market heights or grab new market heights? Both need to be based on market changes. In 2020, nearly half a year has passed, “new retail”, “fault of bankruptcy”, and “smart home” are the words that appear the most on the media page. These keywords will also have a certain impact on the ceramic tile sales market in 2020.

I visited some building materials market and ceramic sales staff one after another, and everyone said: The retail market has shrunk so badly that it is not as good as each year. When changes come, whether you choose to change according to the situation, embrace the change proactively and meet the challenge, or stick to the old ways, stick to the rules, reject or ignore the change, will cause two completely different consequences. The times are changing too fast, and the peak period of many traditional industries has passed. The stability you once thought is slowly eroding your competitiveness.

In its heyday, Kodak created many myths, once occupying two-thirds of the global film market, with 145,000 employees and special stores all over the world. Kodak, once turned countless people’s good times into eternity, is not only one of the symbols of American culture, but also synonymous with film. However, with the development and popularization of digital imaging technology, digital products have swept the world at lightning speed, and the traditional film market is shrinking rapidly. The Big Mac with a century-old history was finally forced to file for bankruptcy protection in January 2012. The ceramic industry is affected by the macroeconomics, diversification of consumption, the intervention of the decoration industry, the interception of assembly companies, the rise of different industry channels, and the increase of commercial costs. The retail market will be further disintegrated. The retail terminal is no longer a consumer to buy home building materials. The only channel. These all directly reflect the malaise of the retail market. Faced with such a pattern, ceramic tile brands must not only passively shrink terminals, but also study the upgrade of business formats, service models, and experience models. Only in this way can passivity be turned into initiative.

Market structure reorganization Channel diversified channel construction has become a key layout for the future development of ceramic tiles and related home furnishing brands. At present, with the implementation of the policy of simultaneous rent and purchase, the housing rental market has expanded rapidly, which stimulates the arrival of the era of stock housing. It can be predicted that under the market opportunities brought by the era of stock housing, “supply-side structural reform”, and “One Belt One Road”, more and more brands are beginning to restructure their marketing systems, partnership branch channels, and regional centers. Various marketing systems such as warehouse adjustment and cross-border cooperation have become new trends in brand development. The real estate industry has gradually become a low-profile industry. The real estate market, which is highly related to the building materials industry, has entered a cooling-off period. At the same time, with the improvement of the integration capabilities of real estate companies, more and more real estate companies have the ability to build fine decoration .

At present, most of the new houses in big cities are sold with refined decoration and high-quality properties, and this trend has huge space for development in fourth- and fifth-tier cities, county towns, and major towns. In the future, the development of the building materials industry will shift from bulk packaging to mass ordering, which will make the building materials industry more competitive, building ground experience stores and other ground promotion will have more advantages, and the entire market will be gradually controlled by companies with good brand reputation.

Source: Zhihu Author: Gavin