Aluminum doors and windows industry threshold low market vicious competition

In the aluminum doors and windows industry, there are new and dead enterprises every year, which is a normal phenomenon in the industry. However, the number of newly-added enterprises last year is far beyond the previous years. Why does this happen?

Reasons: Market booms, low-industry links mature

Door and window market boom

The doors and windows industry is indeed very prosperous in recent years, and the data shows that most of the home industries this year are not ideal. According to the latest statistics of Asia-Pacific media, in the first three quarters of 2013, 50%-60% of manufacturers and distributors in the pan-home industry did not make money, and more than 60% of hypermarkets were losing money. However, the door and window industry still maintains a high growth momentum. From the perspective of some enterprises that the author understands, many companies have maintained a growth rate of more than 20% in the first three quarters. In recent years, the market space for high-margin products has increased, and the return on investment of these products has been high, attracting a lot of capital.

Industry immature entry threshold is low

Relative to the floor, bathroom, furniture and other industries, the doors and windows industry is not yet mature in marketing or brand operation. As a sunrise industry, the doors and windows industry has been relatively extensive so far, the industry is not standardized, technical requirements are low, capital investment requirements are low, there is no monopoly, and there is no brand that consumers generally agree with.

Perfect industrial chain

Foshan has a complete industrial chain of doors and windows. It is easy to find the relevant manufacturers in terms of door and window accessories, profiles, etc., and such companies are concentrated, low transportation costs, combined with its already formed market foundation, to establish a manufacturer is It's easy.

Suddenly, a large number of small businesses are pouring into the market. The impact on the market is obvious, and the side effects on the market will gradually emerge. To this end, we interviewed a number of existing doors and windows companies to discuss the impact of these new companies on the market of doors and windows.

Impact: Product homogeneity, vicious market competition

Further aggravate product homogeneity

Small enterprises have low ability to innovate products and can only imitate the hot products in the market. Homogenization will be more serious than now. The loyalty of dealers and consumers to the brand will inevitably become lower. Consumers generally agree with the brand.

Caused vicious market competition in the short term

Small businesses began to enter the market mostly with price wars. First, they imitated the products of large enterprises. In the initial stage of the business, the reserve price was definitely more advantageous than the high price of large enterprise products. However, when the company develops to a certain stage, with production and brand operation requirements, the low-cost advantages previously brought by lack of marketing and lack of innovation will become the past. Once the cost rises, the price advantage with large companies will increase. Suddenly collapsed.

How to deal with existing enterprises

Many mature brand companies are very calm about the number of new companies. In their opinion, the entry of new companies will not have much impact on their brands. Marketing is mainly reflected in price and quality, but in the end it is still more profound than service, quality, cost control, and brand enterprise. Influential brands in the industry usually have accumulated their own stable customers, and those newcomers have limited dealership resources and can only rely on passive investment at the show. In terms of product quality, newly-entered companies are not able to compete with certain brand companies that have accumulated due to the lack of production and management experience. Therefore, the participation of this group of companies will result in a price war, but it will be difficult to create ** for existing brands in the market. As long as the existing companies continue to do a good job in product development and quality control, and rely on the accumulated dealers and consumers, they can take an absolutely favorable position in the competition with new companies.

Compared with other mature industries in the window and door industry, the market competition rules are still not perfect, and they are not as calm as they seem. The current door and window industry is changing blood every year. What can really be left is companies with some background, quality, marketing, and branding. Only companies that focus on brands and focus on product quality can survive for a long time, and small companies that rely on low-end products will have smaller and smaller living space. If the new company only enters the window and door industry with the attitude of “paying a pen”, it is believed that the final result may not be as good as the imagination. Profitable but forgetful of fierce competition, as the doors and windows industry becomes more mature, speculative operations will be doomed to failure.