There are four concerns behind the prosperous development of home customization industry There are four concerns behind the booming customization industry

- Jul 20, 2018-

1. The whole industry enters the customization field, the market competition is heated up, and the average profit margin of the industry may decline.


In recent years, home customization has been developing vigorously and has attracted many enterprises to cross the boundary, including finished furniture, ceramic sanitary ware, home decoration, soft decoration, floor, plate, household appliances and doors and Windows. According to the survey data of guangzhou construction expo, 60% of enterprises have entered the customization field, and the fierce competition of happy horse enclosure is imminent.


Custom field threshold is relatively high, to the enterprise system, design, production, channels and landing ability have higher requirements, could see quite a period of time, there may be products of good and evil people mixed up, capacity and after-sales service problems such as imperfect, has great impact on the whole industry, the industry average profit margins decline in May.


2. "house of Commons" may be a false proposition.


At present, customization enterprises are working hard to expand their product lines and achieve high growth through category expansion. However, even if "everybody lives", category is limited, so category expansion is not sustainable for growth.


At present, there are two main ways to realize "crowd-living" : one is to independently produce the product, the other is to expand the product line through acquisition, both of which have great hidden dangers. On one hand, the category that integral household contains is various, craft difference is very big, the category that the enterprise can produce independently is limited, ambry enterprise can do well chest possibly, but do wei yu is "outdoorsman"; On the other hand, the expansion of the category through acquisition requires a high level of enterprise management ability.


In fact, no matter through independent production or acquisition to do "everybody reside", enterprises are to some extent using their own strong products in the consumer market brand effect. Obviously, this is a double-edged sword, which also increases the risk of damage to the brand reputation.


3. The customization industry still cannot get rid of the dilemma of "high gross profit and low net profit".


With the pursuit and promotion of capital, the customization industry has entered the white-hot stage. On the one hand, in order to expand the sales channels, the high cost of marketing is inevitable. On the other hand, the competition in the customization industry has reached the stage of "bayonet sees red". There has been a huge marketing and price war among enterprises, which makes it difficult for enterprises to increase their net profit.


4. Real estate policy regulation, fine decoration policy to squeeze the furniture industry demand market.


Starting from 2016, zhejiang, Shanghai, jiangsu and other places have introduced the policies of real estate fine repair. By 2020 to 2025, the "blank house" will be gradually withdrawn from the real estate market, and the new housing will achieve 100% "complete decoration and finished product delivery". As a post-natal cycle industry, the furniture industry is faced with the risk of falling market demand.


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