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Why Are Ceramics, Sanitary Ware And Other Industries Super Business Difficult To Run A Good Custom Home?

Bathroom Business School

Ceramics, bathroom industry has many brands of a cross-defined custom home. To briefly list, the ceramic industry has: Dongpeng, Gold Medal Asia, Shunhui Ceramics (90 degrees, Curtain View Custom). The bathroom industry has Kohler, Arrow, Jomoo and so on. And the big dealers in the pottery and sanitary industry have crossed over into or have entered the custom home industry. The last successes are few, including Hangzhou East Arrow, Beijing Huanai and so on. They are all super big dealers in the pottery and sanitary industry, with first-class stores, image, location, team and capital. Theoretically, the success of a cross-defined home is not a problem, but the fact is a big disappointment. Annual revenue of more than 2 billion yuan TOTO, Arrow the first agent Hangzhou East Arrow Group has been the agent of the Italian Veneta, Daxin custom, top solid home and many other brands. Finally, they are almost to close store, no gain.

Why do the super business of the pottery and sanitation industry hold the top resources, but little harvest in the custom home project? In order to better analyze and display the situation of the ceramic industry in this visit, the following author will summarize the similarities and differences between the ceramic and sanitary industry and custom homes in two aspects.

01

Pottery and sanitary and custom home common ground

Although compared to the custom home, the ceramic and sanitary industry is closer to the product form of upstream building materials. Both sides have big differences in product system and business thinking model. But we also face the same industry brand concentration is not high, homogeneous competition, cross-border transformation and upgrading, channel expansion and other urgent problems to be solved.

1、Industry brand concentration is not high

It is understood that the head of the tile market in 2020 brand, Mona Lisa, Guanzhu, Oceano, Hongyu, Ying, new source, Jane one, Nobel’s business performance is about 3-5 billion between. And the brand with revenue of more than 10 billion is currently only Marco Polo. The bathroom industry is only one Jomoo.

Similarly, in the custom home furnishing industry, there is only 1 enterprise with a volume of more than 10 billion, Oppein. In addition to the performance of Sofia and Home Quarters home furnishing close to ten billion, the remaining eight listed companies are in the revenue between 1-3 billion.

And for the entire ceramic and custom home furnishing industry over 100 billion market capacity, the brand concentration is indeed not high.

However, with the accelerated arrival of the omni-channel era, the era of refined housing and the Internet era in the field of home building materials, the market share of leading enterprises in each industry will be further enhanced. Of course, the premise is to keep up with the development of the times, and grasp the mainstream trend of home furnishing and whole installation.

In addition, it is worth mentioning here that the number of brands with revenues of more than 1 billion from the ceramic and sanitary industry is greater than the custom industry, the brand concentration of the ceramic and sanitary industry is greater than the custom industry. Resource-based industry of ceramic and sanitary industry, regional distribution is more concentrated, mainly in Foshan, Quanzhou, the

2、Cross-border transformation and upgrading accelerated

In the past two years, the construction of ceramic industry with the emergence of new materials for rock panels, so that tile products greatly expanded the scope of application. The current tiles can be used for living room backdrop, flooring, kitchen countertops, cooking tables, bathrooms, washbasins, dining tables, small coffee tables, cabinets, closet door panels, and even external walls and engineering applications and other scenes.

At the same time this visit, I noticed that the vast majority of tile brands on the indoor wall space of the market are very important. Those complete specifications, process-rich products, announced a high-profile entry into the “wall field”.

Of course, aiming at the wall market more than one industry, such as custom home furnishings Opie, Sofia, Home Quarters home furnishings, top solid, Schneiderman, Bateson, OLO, etc. in the field of wall protection have begun to accelerate the layout. In addition, these years, the top wall, wallpaper wall cloth, flooring and other industries in the field of action is also very frequent.

Although the market competition is becoming more intense, this point can also reflect from the side of the “border” between the industries is accelerating the disappearance. Home building materials are ushering in the era of integration and symbiosis.

3、Channel expansion accelerated

Pottery and sanitary industry engineering business accounted for a much higher than the custom home industry. It is understood that Guanzhu tile engineering business accounted for about 40%, Oceano’s engineering proportion is higher, at about 50%. In addition, Huang magnetic new material is to do mainly engineering, these brands (including General ceramics) will increase the expansion of engineering channels in the future.

Although the engineering channel in the past two years is also the main reason for the custom home furnishing industry to maintain the growth of performance, it is clear from the proportion of engineering business, the custom industry in the channel growth space is still very large. On the contrary, the pottery industry, the growth of the engineering channel have reached a stable state, it is difficult to have a major breakthrough.

In addition, many tile brands in the home improvement channel also started early, stable development. For example, MOJICA dream home tile, strong Hui ceramics, Jane a tile are mainly to do home improvement channels.

In addition to an important channel in the building ceramic industry is the designer channel. Many high-end tile brands, are taking the designer route. For example, DPI imported tiles, Paris family tiles, 90 +| light tide modern tiles.

And from the retail channel, the development of ceramic brands is also considered more mature and stable.According to my understanding, the terminal store layout network of more than 1,000 brands are Guanzhu tile, General tile, Qiang Hui ceramic, Oceano tile, Hongtao ceramic.According to my understanding, the terminal store layout network of more than 1,000 brands are Guanzhu tile, General tile, Qiang Hui ceramic, Oceano tile, Hongtao ceramic.  Elisabeth’s number of stores is also in the 700 or so.

These channels layout and custom home have a lot of similarity. Only, the custom home furnishing channel layout is more comprehensive, while the channel layout of the pottery industry will be relatively single.

So the future pottery enterprises to find a new performance breakthrough point, must rely on the layout of the omnichannel, while the construction of the new retail segment also need to accelerate the process.

 

02

The difference between custom home and pottery industry

1、Information construction

Information construction is one of the core competitiveness of the custom home furnishing industry ahead of other industries. First of all, to build a digital factory is one of the strategies for custom enterprises to land on “digitalization”. From “manufacturing” to “intelligent manufacturing”, it not only realizes the industrial transformation, but also will promote the brand and the industry’s second voyage.

Of course, the ceramic industry due to differences in production processes, can not form a digital factory. But you can learn from the model of manufacturing execution system and transportation management system, the production process is more rationalized control.

Another is the software platform empowerment. At present, most of the custom home furnishing enterprises in the technology empowerment, have solved the design, order, production and a series of pain points, the real realization of digital landing. According to my understanding, the terminal store layout network of more than 1,000 brands are Guanzhu tile, General tile, Qiang Hui ceramic, Oceano tile, Hongtao ceis.  Elisabeth’s number of stores is also in the 700 or so.

These channels layout and custom home have a lot of similarity. Only, the custom home furnishing channel layout is more comprehensive, while the channel layout of the pottery industry will be relatively single.

So the future pottery enterprises to find a new performance breakthrough point, must rely on the layout of the omnichannel, while the construction of the new retail segment also need to accelerate the process.

2、Digital marketing

The trend of digital marketing in the last two years is non-private domain traffic. This is also the custom industry in 2020 is vigorously laid out in the field. Through MCN + e-commerce / short video / live form to drive the industry quickly out of the circle, become a new tool for the custom industry to obtain traffic.

The most successful one is Home Quarters, which has joined hands with 30 million fans of “designer Ah Shuang”, the first big V in the home industry. A live broadcast for 5 hours, online viewing more than 7.7 million, the number of deposit transactions made 13,900. Such objective data is quite a successful marketing case in the home building industry.

Home Quarters home furnishings combined with the brand concept through content e-commerce, deliver brand value, better distribute the content to target consumers, and solve the pain point of accurate marketing. This is very worthy of pottery enterprises to learn from and learn.

Plus the future in the 5G change under the auspices of the user in the short video interactive experience will also become more and more rich, its communication will also be further effectively enhanced. So pottery enterprises must accelerate the layout of private domain traffic in the field of short video, in order to keep up with the new communication trends.

 

03

Why is it difficult to do a good job in the ceramic and sanitary industry big business custom home?

The essential difference between the two industries is that the pottery and sanitation industry is a typical “channel pull type”. The ceramic and sanitary industry output good products, find first-class agents, increase brand publicity, you can quickly build stores in the terminal.  Manufacturers can transfer inventory, rapid volume. Pottery and sanitation industry’s marketing strength is reflected in the channel business. Agents, engineering dealers own resources, strength, business ability is often the determining factor.

Custom home industry marketing is characterized by the dealer can not stock. Manufacturers are unable to quickly boost sales through large-scale advertising, large investment, and rapid pressure. The systemic, personalized, specialized and project-based characteristics of custom home furnishings determine that the volume cannot be quickly increased in the short term. Customized home marketing belongs to the “headquarters-driven”. Headquarters in the background to build, training, team replication, terminal standardization output and other backstage operational capabilities determine whether the store in the terminal competitive.

The ceramic and sanitary industry, as well as similar plates, flooring and other related standardized products in the industry, most of them take the “agent + distribution” vertical channel.Custom home furnishings are all flat channels. Short, flat, fast is the key to custom home furnishing business.

Customized home furnishings attach importance to service. They have a high degree of specialization, long process, high error rate, project management system and other characteristics. They require a professional team and a high degree of professionalism. Doing well, doing a large scale of custom home big business have a common characteristic – focus, concentration, professional. Focus on doing a brand, professional services. Oppein, Sofia, etc. require dealers must focus on operating a brand. Custom home furnishings are all flat channels. Short, flat, fast is the key to custom home furnishing business.

Customized home furnishings attach importance to service. They have a high degree of specialization, long process, high error rate, project management system and other characteristics. They require a professional team and a high degree of professionalism. Doing well, doing a large scale of customized home big business have a common characteristic – focus, concentration, professional. Focus on doing a brand, professional services. Oppein, Sofia, etc. require dealers must focus on operating a brand.  This focus is the real long-termism, in order to accumulate energy to power.

In addition, the characteristics of the super business focus on what to make money fast to do what. Taowei dealers entered the custom home furnishing industry in a big way and are eager for quick success. They want high input and high output, fast input and fast output.Customized home of can not quickly on the volume, and the grinding cycle is long. They have a high error rate, a handful of projects and other invisible business problems, so that many pottery and sanitary big business secretly lament – the water is too deep! … Customized home of can not quickly on the volume, and the grinding cycle is long. They have a high error rate, a handful of projects and other invisible business problems, so that many pottery and sanitary big business secretly sigh – trap is too deep!

Customized home has a “low entry threshold, high operating barriers” characteristics. This is also a problem that many cross-border manufacturers who enter custom homes are prone to ignore. They saw the industry’s high gross profit, high growth rate, but did not see their own soft strength construction, professional team building, the output of core competitiveness.  All of these back-end business problems are exposed in the terminal stores.

May pottery and sanitation, flooring, sheet metal business are cautious cross-border entry, slow that is fast, fast that is slow!

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