Home appliance predators influx into cabinets market cabinets Merchants Road where

The Guangzhou Construction Fair in July has been closed for more than two months. People in the closet halls have been shaken. The scene of hot and unusual scenes is still fresh. However, behind the scenes of hot scenes, there is a sigh of difficulty for the cabinet brands. Is there no market in the cabinet industry so no distributors can be recruited? Or is it because the simple cupboard brand can not meet the needs of dealers? The reasons for this are sensitive and complex and worthy of exploration by all practitioners.

Strong home appliance brands stir the investment market Appliance giants have long been involved in the cabinet industry, such as Haier, Fantasy, Shuaikang, Vantage, Macro, Aucma, etc. Some of these companies even regard cabinets as the focus of future development. At the July construction fair, Midea advanced into the cabinet market and declared that it would be the industry's top three within the next five years, causing intense concern among the industry.

As the saying goes, no profit can not afford to get up early. The high profits of the whole kitchen are an important reason to attract home appliance companies to test the cabinet industry. The general manager of the Haier Kitchen Beijing Center told reporters: “Haier's overall kitchen gross margin is nearly 30%.” Such a high gross profit is undoubtedly the strongest catalyst for companies entering the cabinet industry.

It is reported that the current average profit of the household appliance industry is 5% to 10%, which has already belonged to the “sunset industry” in the industry. In contrast, the overall kitchen's 30% profit level is quite a lot of oil. According to Zhu Changling, deputy director of the China Furniture Association, even in the entire furniture industry, the overall kitchen can be considered a very profitable industry. Benefits Currently, Changhong, Midea, Vantage, Sakura, and many Other home appliance companies have spent a lot of money to build kitchen products.

There are not only domestic kitchen and electric companies involved in the cabinet market, but also international brands such as Siemens, Electrolux, etc. They also infiltrated into the cabinet industry through wholly-owned or cooperative forms, hoping to obtain a share from them.

Household appliance companies are mostly large companies with strong financial strength. Their brand appeal is even more important. The involvement of these home appliance companies has made the choice of cabinet franchisees even bigger. When they consider the brand effect, they are more willing to rely on the development of household appliances companies. A large number of franchisees are willing to join a strong brand of home appliances, which has caused the loss of the investment resources of the original cabinet brands and the difficulty of attracting investment.

Strong capital plundering investment resources cabinets and wardrobes are regarded as the last “cake” in the home industry, which also triggered competition among home-based industry peers. Furniture companies have derived their own cabinet closet brands, such as Dawn Furniture's Patini cabinets, the top 100 brands, dynasty, nature and other wardrobe brands, Wrigley, Mika sanitary baths in cabinets ... and even decoration companies are not far behind. Yuen Chau decoration has hundreds of cabinets, Dongyi Risheng’s intentions are Germany and France, Longfa decoration has Meiermaisi cabinets, all this makes the cabinet industry become a feast of the pan-family industry, showing the tendency to grab and grab. As a result, large companies in the wooden door and staircase industries have also come one after another. The entire cabinet industry has rapidly expanded.

Enterprises in the furniture and sanitary ware industries have considerable financial strength because they build a sales platform for cabinet products on the sales network of their own products. Therefore, they can do more with half the effort. They often see that some home improvement brands have entered the cabinet industry, that is, they can Blooming everywhere, its brand appeal and the original sales network, the momentum can not be overlooked. To a certain extent, these enterprises also seized the investment resources of the original cabinet brands, and the loss of high-quality franchisees and powerful franchisees is inevitable.

The overall home concept influences brand investment. In recent years, the concepts of “integrated home” and “overall home” have become more and more popular. Big and powerful companies have all played the concept of an overall home. The overall kitchen, bathroom, and home are all covered. The pattern has swept the entire industry.

The introduction of these concepts has greatly satisfied the demand for one-stop shopping for consumers, and has also stimulated the entire home industry and accelerated the consolidation of the industry. Under such circumstances, the mutual penetration and integration of kitchen appliances, furniture, sanitary ware and decoration companies have become inevitable.

With this kind of "big home" concept of propaganda and guidance, coupled with the orientation of the real estate policy in the last two years and the pressure of high costs, franchisees are eager to maximize profits and hope to pass a relatively low operating cost. Sell ​​more products, such as wooden doors, cabinets, wardrobes, etc. to maintain their own profits, so they are more inclined to join home brands with diversified products. A single cabinet shop means to support all costs through a single cabinet product, and a diversified company gives franchisees the chance to earn more profits. The original cabinet brands will face more difficulties when they invite investment.

Brand cabinets should speed up the integration of various industries in the face of different industries to enter the cabinet industry, how can the existing cabinet brands make efforts? Europa Kitchen Cabinets said that it will use three years to fully establish Europa Group which is mainly based on European kitchen cabinets, supplemented by kitchen appliances, sanitary ware, wardrobes, and building materials.

Europian cabinets have expanded into large-scale homes in the pan-family sector, indicating that cabinet companies have entered the pan-family sector as a development trend. Cobb cabinets smelled the strong competitiveness of the entire home in the future market as early as a few years ago, so they quickly expanded the single cabinet products to the high-end home improvement business, and then entered the flooring, bathroom, sofa and other product areas, and eventually will be home improvement business. It has expanded into the hardcover, mid-to-high end retail sector, and opened up the integrated Boloni overall home management business that currently brings home-installed product sales.

However, not every enterprise has the strength of Europa and Cobb. Cupboard brands that do not have the appropriate strength can achieve this breakthrough through the cooperation model. The cooperation between the Falok cupboards and the good-looking wooden doors was very successful and could be a model of cooperation among the industry.

Firms with a certain strength and brand influence will jointly operate to form complementary advantages. The effect is no less than the extension of the product lines of large enterprises. The dealers also virtually reached the cooperation with the two dominant companies and achieved the goal of selling multiple products to maximize profitability.

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