The construction of “value advantages” in flooring companies is reflected in three aspects

In 2012, the flooring industry was affected by the economic environment and it appeared to be in a downturn. Although the flooring industry is still a young industry, the industry chain is still not perfect, and the market structure is not a very reasonable industry. However, there are many objective factors. In fact, many floor companies have lost their “value advantages”. The status quo of "Seeing Heaven for Meal" once the economic environment changes, the company's operation will be difficult.

In the MBA Tutorial, "Value Advantage" has a concept that refers to the true value created by an industry or enterprise to customers. There may be many values ​​that an industry or a company can create for customers, but the optimal value is the "value advantage." This "value advantage" is often a "scarce value." The greater the "value advantage" possessed by an industry or enterprise, or non-transferability (ie, it is difficult for other industries or enterprises to duplicate), the stronger the vitality of this industry or enterprise.

So how can Chinese flooring companies build their own "value advantages" and reduce their transferability? There are three aspects of building a “value advantage” for a flooring company:

First, the "value advantage" is constructed by corporate strategy and profit model, and it must have a growth strategy that suits the company itself and a matching profit model. The company's strategic model is many, but it is not easy for a company to find a growth strategy that is truly suitable for the company itself. It is also very important to design a corresponding profit model after establishing its own growth strategy, because the corresponding profit model can ensure the growth of the company. The perfect implementation of the strategy.

Second, there must be innovative technologies and products that support this “value advantage”, because innovative technologies and products can bring greater premiums to companies and can continue to develop.

Small and medium-sized outstanding flooring companies should be good at building their own "value advantages" in innovative technologies and products in narrow-market or more segmented markets. Many flooring companies are accustomed to mass products in the mass market. Although mass products are large, the mass market competition is fierce. Many companies will eventually come to low-price competition because of lack of innovative technologies and products. "The bottleneck went.

Third, there must be an influential brand to prove this "value advantage." The most deadly point of "Made in China" is the lack of brand. Products lacking brand awareness are hardly accepted by consumers. Even if the “Made in China” product is no matter how good and the technology is advanced, because you don’t have a brand, it is difficult to achieve sales and convert the product into a commodity. The sales premium rate of corporate products driven by “brand premium” is generally 25% to 47% higher than the industry benchmark price, so “value advantage” should be proved by influential brands.

Therefore, in the next few years, China's flooring industry should abandon the idea of ​​pursuing market scale, work hard, and create its own "value advantage."