The China Federation of Contemporary Businesses released the "China's Pan-Family Industry Research Report (2013)", which pointed out that under the guidance of the new urbanization strategy, the state will build a large number of affordable housing and affordable housing in the process of real estate regulation. This also represents The new urbanization construction will bring new development opportunities to the building materials industry such as flooring.
New urbanization brings a lot of room for development
The level of urbanization in China is just over 50%. With the continuous improvement of economic development, more rural people will become urban population. This also means that consumers’ spending power has been strengthened and their living standards have continued to move closer to urban standards. In this regard, the survey of relevant companies found that for the flooring industry, the competition in first-tier cities is fierce, and it is in a relatively saturated state. The development and transformation of the new urban market will greatly stimulate domestic demand and provide the floor market with new and broad space for development.
Channel sinking companies need to readjust product system
In the past, the living environment in rural and urban areas was relatively simple. Many simple devices such as shower products and toilets were not available. Now that the country is pushing forward with the reform of urbanization, it will bring huge business opportunities to various factories in the building materials industry such as flooring, and will also bring greater benefits to domestic brands. The economic development in the urban areas is relatively slow, and the residents' consumption level is not too high. From the consumption level, the domestic floor brands have the greatest opportunities. Xiao Bian believes that for enterprises, we must seize the opportunity of urbanization and integrate this product into the environment as soon as possible from the aspects of products, channels, and services.
In addition, faced with the challenges of “logistics†and “networkâ€, before the channel sinks, floor brands need to conduct detailed studies on the brand's product system, especially the price system, and design a series of products and pricing systems that meet the sinking channel market. , thus targeted to meet the consumer demand of the target population. As the channels sink further, products from the solution will go to suite products, thereby meeting consumer demand at a more economical cost.
Franchisee’s layout of the urban market needs to be backed by a brand
In the new urbanization development environment, many astute investors are fully aware of the potential of the market, starting to invest in powerful flooring companies and wanting to share a share in the new urban market. Many floor companies have also taken a look at this opportunity. In order to better realize the leap of development of the brand, they have adjusted themselves and set out to allocate the urban market and expand investment.
The person in charge of a floor brand also said that before joining the entrepreneurial business, it was more likely to look at the Chinese first and second tier markets, resulting in a basically saturated market. Nowadays, the process of new urbanization is accelerating, which brings many new opportunities for development to the market. It is imperative to join the urbanization floor market. However, although the new urbanization market is a blue ocean, it is an opportunity or a challenge for dealers. It also depends on the support policies of the enterprises. After all, the development of new markets is backed by strong backing.
