The Chinese economy is in a period of rapid change. New models and new thinking such as "Made in China 2025," "Better Life," "New Retail," are currently profoundly affecting every industry, leading upstream and downstream, competing products and partners , Online and offline, products and services, the relationship between users and enterprises also will change, a brand new era is coming. So what is the future we have seen when we stand in front of the floor in 2018 as the "basic" flooring industry in the home industry? What trends are coming to fruition?
Aspect One | Channel: brand focus
Red Star, actually expanding speed, high-end channels, "hand-picked" front-line brand floor
Trend: two major domestic home store giants - Red Star Macalline and actually home has released a thousand stores plan, as of June 30, 2017, Red Star in the domestic mall reached 214, while the home of the 200th The store also opened in Changchun in December. The two major home stores in recent years called speed shop fast.
The future: Red Star and actually as the leading home chain operators in the country, regardless of the size of the mall, brand awareness or operational capacity are the industry aircraft carrier, is a veritable head of the channel. Based on the goal of creating a quality shopping experience for consumers, the two hypermarkets, while rapidly expanding, are also continuously increasing the barriers to entry and limiting the number of same-category brands to be settled. Two supermarkets have said: in the future store, the floor brand will be controlled at about 10. This trend will lead to "stronger strong, second-line exit." At present, Nature, Holy Elephant, Del, Fillinger, Friends of the World, Longsheng, Tiange, as well as imported brands of high, the United States, Hannuo, etc., both with the two supermarkets to maintain good relations of cooperation, status. The remaining seats are scarce, 2018 will be the last chance to seize the high-end channels.
Aspect Two | Import: go down the altar
Import flooring brands to speed up the channel sink, gradually declining benefits of transcendence
Trends: From 2017 Shanghai flooring exhibition flooring brands get together, and the geothermal flooring category dominance, we can see that in China, a large producer of flooring, imported flooring once reached a fiery degree. Relevant data show that for the first time in 2016 imported floor sales exceeded 10 million mark is expected in 2017 is expected to reach 15 million.
The future: soaring heat, bringing the competition intensified: In 2017 in the country, imported floor brand increased by 15%, homogenization of the phenomenon; the market tends to saturation, store costs soaring, the imported flooring brands have to the second and third tier cities Shen channel; the relevant agencies began to step up supervision of the quality of imported flooring, for example, four imported brands were exposed on a number of indicators far less than domestic brands. Another media broke the news, some of the so-called imported flooring brand actually made by Chinese enterprises, the quality of imported brands aura ring burst. Under the combined effect of various factors mentioned above, the curve of the development of imported flooring brands has crossed the apex and the image of "high-end" has been shaken. In 2018, with the further increase in the number of imported brands, the rapid sinking of channels, and the massive appearance of "hundred-yuan imported flooring", consumers will return to being rational and its advantage of being detached will be significantly weakened.
Aspect Three | Price: continue to rise
The contradiction between supply and demand of solid wood flooring is prominent, with many factors pushing prices up continuously
Trends: In 2017, Russia proposed restricting the export of timber and intending to revise the export tariff rate. Gabon decided not to fully implement the ban on logging for 6 months. In the United States and Malaysia, it successively announced the reduction of timber exports. In addition to the war in Myanmar and other reasons, Timber prices opened the channel for sustained price increases, resulting in solid wood flooring prices across the board. In addition, rising labor costs, rising environmental demands and substantial release of demand for hardwood flooring (up by about 11% in 2016 and close to 14% in 2017) are pushing up their prices.
The Future: The value of solid wood flooring has been severely undervalued as a result of price wars. However, with the log exporters accelerating the tightening of export policies, the contradiction between supply and demand of solid wood flooring brought by the improvement of life quality, the levying of environmental protection tax and the official price increase of railway shipping container freight, the production cost of flooring enterprises continues to rise. As a resource of high-end products, real wood prices is imperative, the price war space has disappeared. 2018 solid wood flooring prices will continue to rise the norm, and climbed to a new high.
Aspect Four | Strategy: Transformation and upgrading
Industry resources to accelerate tilt, solid wood flooring to boost floor heating to upgrade
Trend: January 13, 2017, Del and Boer reached a strategic cooperation to enter the solid wood floor heating; April 19, Jusheng formally announced the implementation of restructuring, focusing on solid wood floor heating; December, nature launched the "Chevron floor heating system ", Showing a strong push into solid wood floor heating trends. In addition, Yan mud, Fidelli, World Friends, Yongji and other brands have also been the main push the real wood flooring categories, industry resources to accelerate the advantages of solid wood floor to tilt. It is estimated that the production and sales of solid wood flooring will exceed 30% in 2017 and continue to lead the hottest flooring category.
The Future: Compared to the diversified wave, the rise of solid wood flooring category is relatively late, but it shows a stronger staying power. Since its establishment more than 10 years ago, the geothermal flooring has become a strong product and mature degree. In addition to the initiative to transform several major brands, the development of geothermal area in Shanghai to develop geothermal area, to the general rate of increase, the concept of healthy and environmentally friendly consumer and many other positive factors, but also to promote the industry resources to focus on the category. 2017 is the starting point for solid wood flooring to enter the golden period. Under this trend, more flooring enterprises will upgrade to solid wood flooring in 2018. At the same time, the lock process and geothermal resistance characteristics will become the standard wood flooring, solid wood flooring to become synonymous with high-end solid wood flooring.
Aspect Five | Listing: Capital Entry
Tide market and the flooring industry, brand war to promote corporate finance pace
Trend: In 2017, it is the peak year for the domestic industry to be listed. Many brands such as European School, Zhibang, I Music, Gold Medal, Piano, Shangpin Delivery and so on have been listed one after another. At the same time, this stock market trend also spread to the floor industry: June 15, Fillinger listed on the Shanghai Stock Exchange; November 28, the Yangtze floor disclosure prospectus on the CSRC website, to be listed on the Shenzhen Stock Exchange. In addition, the listed companies such as Yihua, Jilin Forest Industry, Shengxiang, Shengda, Nature, Fidelity, Del and others have now been listed on the flooring industry with nearly 10 brands listed.
The future: through listing, financing, can fundamentally solve the business needs of capital; but also can help establish and improve the modern enterprise system. In recent years, the flooring industry brand war intensified, many brands need to capitalize on the rapid expansion of the scale and diversified layout to consolidate the status of the industry, and other brands to shuffle, so to seek listing has been a hot topic in the flooring industry. With the further escalation of the brand war in 2017, it is estimated that in 2018 there will be more flooring brands moving towards IPO.