"Manufacturer relations are tense!" "Costs remain high and the market environment is harsh!" "Channel operation is single." Many brands cannot continue. "The brand structure has been finalized." "It is difficult for second-tier brands to intervene." "Brand concentration has intensified."
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When it comes to the Nanjing ceramic tile market, I believe the above answers must be familiar to those who work in the ceramic industry! In the eyes of ceramic tile manufacturers in Foshan, the Nanjing market is a market that is “incomprehensible”, “difficult to operate” and “unwilling to give up”. So, what exactly is this market that people love to hate? What is the reason why people love and hate it? What are some successful brands? What good models can we learn from them?
As of the evening of May 14th, in one and a half days, China Ceramics Network "Channel Fission Market First" Terminal market research, a total of 9 ceramic tile brand companies and two stores including Kamenzi Red Star Macalline and Hongyang Decoration City were visited in Nanjing. The collected market information is compiled as follows. I hope that this information about the Nanjing market , which can help you understand the Nanjing market.
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Nanjing Market Overview
NO1. Keywords: property market, finely decorated houses, second-hand houses
The proportion of finely decorated houses in the urban area has reached 70% - 80%. In the past two years, the proportion of shantytown reconstruction houses and resettlement houses has increased Emerging to form a certain market share has become the direction for some brands to compete for growth points. The second-hand housing market has not yet formed a large share in Nanjing, but centralized purchasing and renovation have significantly cut off market customers, retail sales have declined, and renovation is growing into a new source of channel growth.
According to Samit’s Nanjing agent Wu Huiquan and Nanjing Kamenzi Red Star Macalline’s relevant person in charge Xu Jianyong revealed: Nanjing The proportion of finely decorated houses in China is currently as high as about 80%, and its ceramic tile retail channels have been greatly affected. An agent who wished to remain anonymous said: In the past year, the retail sales of ceramic tiles in Nanjing have generally declined significantly, with some brands declining by more than 50%. In the past two years, due to government policies, a certain proportion of resettlement housing has emerged. This part of the housing decoration market has also become the development hope of some brands. Among them, Chen Xinchun, the Nanjing agent of Campari who is based on the market with high cost performance, said that in the past two years, its focus has been on the market direction of these shantytown renovated houses to make up for the current situation.The loss of market share caused by the decline in the retail market.
At the same time, housing prices in Nanjing are strong, with the current average price of about 30,000-40,000 per square meter, and the lowest price is not low. The price ranges from 15,000 yuan per square meter to 80,000 yuan per square meter. There are generally three sizes of house sizes: 70-90 square meters for small houses; 100-120 square meters for mid-range houses; 120-140 square meters for mid- to high-end houses; and townhouses, etc. Among them, the mainstream house type on the market has an area of about 100 square meters.
NO2. Keywords: consumer groups, proportion of decoration< /strong>
As a city with a relatively developed electronics and software industry, Nanjing is home to many universities and has a high proportion of migrant population, reaching as high as 100,000 yuan per year. Many of the more than 200,000 college graduates choose to find employment in Nanjing and eventually stay in Nanjing to work hard in life. The Nanjing government's policy on talent distribution in recent years has also attracted a large number of talents, making Nanjing's consumer groups younger and more high-quality.
It is reported that the mainstream consumer groups of ceramic tile products in Nanjing are concentrated in 30-45 years old. Among them, the younger generation has a preference for products. There is a big difference with the older generation. Most young people prefer simple style or modern products in "black, white and gray" tones, while the older ones still prefer beige, off-white and mirror products.
Lou Hong, distribution manager of Nobel Ceramics Hangzhou Branch, as well as dealers of many different brands, said: from decoration funds In terms of proportion, Nanjing consumers’ budget investment in ceramic tiles has been decreasing in the past two years. The reason is: on the one hand, it is becauseThe intervention of the overall home decoration model and the emergence of some new smart homes have further compressed the budget for ceramic tiles. On the other hand, it is also closely related to the rapid changes in the popularity of ceramic tile styles. Generally speaking, a home decoration of a certain style may need to be renovated in a few years to keep up with the trend. Otherwise, it will appear to be lagging behind, so consumers are relatively invested in decoration. The funding will be more rational and prudent.
NO3. Keywords: building materials stores, rental prices, warehousing costs
There are about 30 home and building materials stores in Nanjing. The most representative ones are: Hongyang Decoration City (5), Red Star Macalline (3), Jinsheng International Home Furnishing, Jinling International Home Furnishing and Golden Sun at the junction of Nanjing and Anhui, etc.
Among them, Hongyang Decoration City, located in Banqiao, Yuhuatai, is the distribution center for Nanjing ceramic tiles, with an area of 1.2 million square meters. The business area is the largest in Nanjing's building materials market. In this area, almost all ceramic tile brands from high-end to mid-to-low-end are concentrated, and there are more than 400 ceramic tile shops. The current store rent is about 70-90 yuan per square meter per month. Its rent is also relatively high among similar building materials distribution centers nationwide. At the same time, its storage costs are also high, reaching about 50 yuan per square meter per month. moon. The store rent of Red Star Macalline ranges from 200 to more than 300 yuan; Jinsheng is the most high-end store in Nanjing, and the store rent is about 300 yuan.
NO4. Keywords: brand, ceramic tile source, mainstream channel
Nanjing has a large market capacity.But it is a market where it is not easy to increase the market share of a single brand. According to incomplete statistics, the annual ceramic tile throughput of Nanjing’s market exceeds 10 billion yuan (rough data, to be refined later). The main circulation channel in Nanjing is the distribution channel, accounting for more than 60% of its total volume, and the radiation range is approximately 100-150 kilometers around.
There are about 200 existing brands in the Nanjing market, among which the core brands that do well are still some national brands. First-line brands and a small number of East China brands and agent stores have integrated OEM brands.
For now, the largest and most well-known brands in Nanjing are still some national brands Brands and a small number of East China regional brands, such as: Marco Polo, Dongpeng, Nobel, Summit, Mona Lisa, etc. There are also some designer channels or high-end channels that are doing well, such as Jianyi marble tiles and Bode; while the General brand is a brand with relatively stable multi-channel operations; there are also brands that are showing a good upward trend, such as Asia, Dajiang, etc. Jiaolu; Gold Medal Asia is currently promoting its brand; European and American Ceramics, 1916 Ceramics, etc. have achieved preliminary results in the operation of branch companies. Among them, the brands that do well are not only related to the brand itself, but also have a great relationship with the operation of local agents.
NO5. Keywords: mainstream products, sizes, colors, categories
The largest mainstream product in Nanjing is still the 800mm Still dominated by imitation marble texture, its market share exceeds 60%. As for the 900mm X 1800mm size, 600mm X 1200mm and 750mmThe proportion of mm and 900mm In addition, products with soft glossy surfaces are also being accepted by more and more young consumer groups and have become trending products.
At the same time, large-sized ceramic large plate products of 1200mm X 2400mm and above are limited in their use In terms of scope, transportation, follow-up paving and other services, only a few high-end brands can actually sell them, and most agents are more conservative in their display methods. Although its exhibition sales showed a weak incremental trend from last year to this year, it has not yet formed a large share in Nanjing.
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A collection of core views of Nanjing channel merchants
NO1. Consumers’ budgets for decorating ceramic tiles have been further compressed; ceramic tile brands are facing a life and death test
Time: May 13, 4:30 pm
Location: Nanjing Kamenzi Red Star Macalline Nobel Tile Store
▲Representative of Nobel Ceramics Nanjing Branch Lou Hong:From the past two years , Nanjing consumers’ decoration budget for ceramic tiles shows a trend of being further compressed. There are several reasons behind this: First, the intervention of all-inclusive companies has brought the price of ceramic tiles into a lower range; second, the emergence of a large wave of smart homes and smart appliances has diverted consumers away from the market. Regarding the investment budget in home decoration, they may give more of the budget to other home decoration parts and reduce the budget investment in ceramic tiles.
In Nanjing, the market has actually entered a life-and-death test stage for ceramic tile brands, and not only In the ceramic tile industry, many industries are facing this fierce competition and reshuffle.
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NO.2 Dealers under pressure in the Nanjing market are more likely to get involved, and their capabilities grow rapidly under high pressure.
Time: 9:00 am on May 14th
Location: Nanjing Hongyang Home Furnishing Expo City Xin Runcheng Agent Store
▲Xin Runcheng Nanjing agent Xie Yuelong: Operation of Nanjing Hongyang Home Expo City The cost is high and the competition is fierce. The operating cost of Golden Sun Decoration City, located at the junction of Nanjing and Anhui, is much lower, but why do we still stay here (Hongyang Home Expo City) instead of simply moving to Golden Sun Decoration City like some of our peers? Where is the sun? In fact, I was thinking about this issue myself, and finally I figured it out, it should be from Nanjing.Pressure is more easily converted into motivation - in the fierce competition in this market, it is also easier for us to "get involved"! For example, at this time (9:00 a.m.), the door may be opened slowly at Golden Sun. Many people are leisurely and leisurely before the official opening, but we have already welcomed the first wave of customers.
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NO.3 brand dimensionality reduction has been significantly suppressed. Dealers must either represent first-line brands or take a cost-effective route to survive
Time: 10:00 am on May 14th
Location: Nanjing Hongyang Home Expo City Campari Agent Store
▲Campari Nanjing agent Chen Xinchun:The current Nanjing market shows obvious polarization and front-line Brand dimensionality reduction suppresses second-tier brands. For Nanjing agents, if they choose to represent a brand, they must either directly represent the first-tier brands, or simply take the cost-effective route, otherwise it will be difficult to survive. In the same way, this principle is also suitable for brand manufacturers who want to enter Nanjing.
Nanjing’s market share has long been divided up by several well-known first-tier brands, such as Marco Polo, Dongpeng, and Nobel etc. Their brand influence and market recognition are not found in second-tier brands. As an agent, there is little difference between being an agent for a first-tier brand and an agent for a second-tier brand in terms of store image, channel construction and various cost operations. In a sense, in order to seize the market that the first-tier brand has already occupied, share, its investment in being a second-tier brand agent may be greater. But what about output? Obviously first-tier brands have more advantages. At the same time, since the channel operation, model and management of first-tier brands are likely to be stronger than those of second-tier brands, the resource allocation and guidance they can provide to agents will also be better.
In addition, first-tier brands in the market are generally reducing dimensions and suppressing second-tier brands, trying their best to squeeze out in the fierce competition. Suppressing the survival space of second-tier brands includes price cuts and suppression. Therefore, basically the Nanjing market gives very little room for development of second-tier brands.
On the contrary, if you can think about it openly, second-tier brands may directly take the cost-effective route and have a broader living space. In China, there is considerable demand for cost-effective low-end products. Taking Nanjing as an example, the cost-effective market capacity accounts for about 40%-50% of the entire market capacity, or even more. If it can be firmly established It is a good strategy to seize this market.
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NO4. Upgrade distribution channels and use brand thinking to achieve significant distribution results
Time: 11:30 noon on May 14th
Location: Hongyang Decoration City General Store
▲Wang Zhenmou, Nanjing agent of General Ceramic Tiles:Personally, I think we should do something in Nanjing Well, in addition to having a harmonious relationship with manufacturers, it is more important to find a path that suits you. We currently use brand thinking to operate distribution channels, and the results are good.
Specifically, it means unified management of distributors, and uniform activities, promotions and images. external output, including its store image, VI system, etc. Our current distribution channels account for a relatively large proportion, accounting for about 60%. Supplemented by tooling and assembly, we have developed steadily.
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NO.5 Branch offices may be the norm in Nanjing in the future, and it may be a better solution for manufacturers and dealers to jointly establish branches< /span>
Time: May 14, 2:10 pm
Location: Hongyang Decoration City Asia Branch Office Building
▲Zheng Qian, the relevant person in charge of Asia Ceramics Nanjing Branch:Brands in the Nanjing market Operation intoCosts remain high and competition becomes increasingly fierce. Under such conditions, no matter whether relying on manufacturers or dealers to face market pressure, they cannot maximize the advantages of both parties. To this end, manufacturers and dealers must work together to face market pressure. Opening a branch may be the best solution to maximize the advantages of both parties.
Take the current model of Asia as an example. The Asia branch is responsible for management and after-sales service and does not do direct sales. Dealers Just be responsible for sales and ensure that dealers can maximize their energy on increasing sales.
At the same time, Asia Ceramics has also implemented a home improvement distribution model, absorbing a large number of home improvement and decoration companies , become a distributor of your own brand, maximize the avoidance of cooperation risks during the cooperation process, and jointly develop and expand market share.
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NO6. Nanjing is a relatively embarrassing market
Time: May 14, 3:30 pm
Location: Hongyang Decoration City Gold Medal Asia Ceramics Store
▲Gold Medal Asian Tile Nanjing Agent Su Wenzhen:Nanjing is a relatively embarrassing market In terms of product price and market, there are Shandong production areas in the north and Jiangxi production areas in the west. Ceramic tiles from the north and west come to this market to compete, and prices and brands tend to be diversified. But at the same time, this is also an unavoidable market in East China. After all, it is the provincial capital of Jiangsu and is a strategic layout area that many brands value for development. Therefore, on the one hand, the market competition is fierce and the cost of brand operation is high. On the other hand, brand manufacturers attach great importance to the region and have high expectations, which invisibly puts greater pressure on agents in this market. To do well in the market here, a certain brand foundation is essential.
Take Gold Medal Asia as an example. In the past two years, manufacturers have made significant efforts, and the brand has expanded significantly. We In the future, in order to match the brand's positioning and development, it may also be necessary to consider acquiring stores in stores such as Red Star Macalline or Jinsheng Home Furnishing to complete the upgrade and expand high-end channels to match the strategic layout of completing the brand upgrade.
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NO7. Operate in all channels in Nanjing. Once the channels form positive feedback to each other, it will be easy.
Time: May 14, 4:30 pm
Location: Hongyang Decoration City Summit Tile Store
▲Wu Huiquan, Nanjing agent of Samit Tile:As far as the Nanjing market is concerned, Omni-channel operation is very important, especially for comprehensive ceramic tile brands, because if one channel operates well, other channels will usually work equally well. In this way, it is easy to form a series of positive feedback, which ultimately leads to a steady increase in sales. Of course, on the contrary, generally speaking, if one channel is poor, it is likely that other channels will also be negatively affected and will not perform well.
At the same time, after-sales service in the Nanjing market is very important. Generally speaking, the after-sales service procedures are the same, but the attitude And the feeling given to customers has become the key to competition. Samit is proud of its high-quality after-sales service, which has enabled a large number of customers to repurchase and recommend products, and even promoted sales to a considerable extent.
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NO8. The role of the Nanjing wholesale market has been greatly reduced, and it is crucial for manufacturers to work together
Time: May 14, 5:30 pm
Location: Hongyang Decoration City Mona Lisa Store
▲Mona Lisa Nanjing agent Zheng Jiafu:The Nanjing market used to be a A large wholesale market existed, radiating to the entire northern Jiangsu area and most areas of Anhui. Later, with the smooth flow of logistics, this function gradually degraded and the ceramic tile brand developed.
To build a good brand in Nanjing, it is crucial for manufacturers to work together. The important reason why some brands do not do well in Nanjing is that manufacturers are too impatient and fail to give dealers enough patience to develop. I think it is very important for manufacturers to give dealers a certain sense of security. Just like when a husband and wife get along, they should try their best to work together and give each other a sense of security. Don't let one party always say that he wants a "divorce." People become discouraged, which causes greater negative effects.
As a provincial capital city, Nanjing has a large market share, but it requires patience to build it. Generally speaking, it is not too difficult to support an agent in Nanjing so that its annual sales exceed 100 million, but if you desperately support agents in county-level cities, it may not be easy to do so. Therefore, from this aspect, Nanjing has the advantage of Nanjing.
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There are many opinions and phenomena about Nanjing, which are limited by time constraints and information collection limitations. There are more exciting contents, so stay tuned for the in-depth exploration and series of reports from China Ceramics Network.
Of course, during the reading process, you may have different views and opinions. You are welcome to contact China Ceramics Network Nanjing at any time. Contact the research team and participate in the interactive activity of "Channel Fission, Market First" Nanjing Station. Publish your views and opinions by leaving a message or contact us at the end of the article.
Author: Pan Chunhua
