The flooring industry highlights the predicament

With the collapse of the real estate bubble and the retreat of the real estate fever, the floor market demand has gradually shrunk. The home building materials industry thus entered the adjustment period. There was a “trumping tide” in the store, dealers struggled to maintain their livelihoods, and the manufacturers lacked orders. The market is undergoing a thorough “liquidation” of excessive investment in the development of the flooring industry in the past few years. This made most stores, dealers, and companies have different degrees of difficulty. Some professionals have summarized the difficulties of the various roles in the industry chain of the flooring industry as follows:

The Difficulties of SMEs: Low Profits

Small and medium-sized flooring companies have low profits and their brand value is not high. The added value of the brand depends on the company's reputation, reputation, product quality, appearance design, reputation, and comprehensive service quality. Small and medium floor companies have obvious shortcomings in these areas.

In the flooring industry, SMEs are more difficult to attract businesses than large companies, and franchisees have lower quality and higher turnover rates. Due to the small scale of SMEs, the lack of stable product quality and the limited product range, it is difficult to attract more powerful dealers.

At this year's exhibition of home building materials industry, a new floor of the company introduced a new appearance, Environmental Protection materials, advanced technology, reasonable prices, access to a large number of dealers concerned. But when dealers visited the factory, they saw empty factories, sparse workers, and less raw materials. This kind of scene has deterred many enthusiastic dealers, and the scale of the company dragged on to exhibitors.

The enterprise's difficulties: limited business model, insufficient order volume, and fierce competition

In the field of architectural decoration where personalized products are prevalent, the trend of small batches and batches has become increasingly apparent. Under the background of individuation and new products, the form of intensive, large-scale, standardized production organization is no longer the advantage of the enterprise, but it restricts the adaptability of the enterprise to the market. “It is difficult for the ship to turn around,” and it has been difficult to change the systems and production organization forms that have been formed over the years. The traditional flooring companies integrating production and marketing have been slow to develop in recent years.

After years of development and accumulation, large-scale plant equipment and relatively fixed fixed expenses forced large floor companies to have a large number of stable orders to go. Some large floor companies passively choose to cooperate with some large real estate companies in order to ease the contradiction between production capacity and lack of orders. However, in cooperation with real estate companies, companies will be plagued by problems such as low profit margins, long collection periods, high inventory pressures, difficulties in liquidity, and other uncertainties in the ever-changing real estate market.

Due to the low technical barriers and capital barriers, the flooring industry has emerged thousands of SMEs in just a few short years. The impact of the scale and speed of development of small and medium-sized enterprises on traditional large enterprises cannot be ignored.