In 2020, due to shrinking market demand and emerging channels such as engineering, Internet home decoration, decoration, and designers, it will become increasingly difficult for weak small and medium-sized ceramic tile dealers to survive in the terminal market.
According to research data from the China Building Materials Circulation Association, in 2020 alone, the rental return rate of ceramic tile brands in terminal stores was as high as 44.74%, ranking first among all building materials categories.
However, even under the heavy impact, there are still some dealers that have achieved growth against the trend. What are these turnaround dealers and the brands they choose doing right?
How has the ceramics industry changed?
Since 2017, a large number of first-line companies have settled in Guangxi, Chongqing, Jiangxi, Hunan, Shanxi and other places. News of the rapid construction and commissioning of new lines has been heard, which has kicked off a new round of expansion for leading companies.
In 2017, New Mingzhu Ceramics Group invested 2.3 billion to build a green building materials production base in Xishui, Hubei. From 2018 to 2019, companies such as Mona Lisa, Oceano, and Xiejin successively built new Guangxi production bases and put them into operation; After the Chongqing production base was completed and put into operation, Peng and Weimei have increased investment and expanded the Jiangxi production base this year; on May 13, 2021, the foundation stone was laid for the Wuzhou production base of Jianyi marble tiles in Guangxi.
▲New Pearl Hubei Xishui Production Base Signing Site< /span>
But, on the other hand, the shrinking trend of national ceramic tile production has not weakened. Data from the China Building and Sanitary Ceramics Association show that the national building ceramics output in 2020 was 8.474 billion square meters, a decrease of nearly 1/3 from the peak period; in the past five years, there has been a net decrease of 317 building ceramics companies and a decrease of 861 production lines.
The cruel reality reflected behind this seemingly contradictory phenomenon is that the polarization of the ceramics industry has intensified. Leading companies have completed their brand sinking layout in the fierce competition by relying on their manufacturing strength and brand effect. In the future, opportunities for small and medium-sized enterprises will become increasingly large. Slim. In particular, the implementation of the policy of finely decorated houses has won a broader market space for leading ceramic companies, squeezing the living space of a large number of small and medium-sized brands.
Looking at the changes in consumer groups, today’s mainstream housing needsThe crowd has been replaced by the post-90s and even the post-95s. This consumer group that grew up in the new era also pursues individuality, fashion, and trends in home decoration. Therefore, the increasingly homogeneous ceramic tile products and brands have been given a deeper meaning. Many ceramic tile brands are moving closer to younger people in terms of products, brand image, marketing methods, etc., and comprehensively innovating the brand.
What kind of brand does a dealer need?
It can be said that in the face of a shrinking retail market and young consumers who are more picky about products and brands, it has become increasingly difficult for dealers to find truly "distinctive, potential and sustainable" ceramic tile brands. It’s getting harder and harder.
In such a fiercely competitive market environment, almost every city has leading dealers that rely on brand strength and own resources to grow rapidly; small-scale dealers have low investment costs, or simply rely on low quality and low price to occupy the market. The low-end market; as middle-level dealers, they are most likely to be eliminated under the squeeze of dimensionality reduction by top brand dealers.
So as a mid-level dealer in first- and second-tier cities, or a dealer focusing on second-, third- and fourth-tier markets, what kind of ceramic tile brand should you choose? In the first five months of this year, Huiwanjia Ceramics, a subsidiary of New Pearl Group, successfully joined dozens of new dealers in Yulin, Shaanxi, Taiyuan, Shanxi, Yuncheng, Shanxi, Shuozhou, Henan, etc.
▲A group photo of some of Huiwanjia’s franchise customers
If we delve deeper into the reasons behind these dealers choosing the Huiwanjia ceramic tile brand, we will find that nowadays, brands that have the strength to meet the needs of different consumer groups and have obvious tonality are more favored by dealers.
Data released by the National Bureau of Statistics in mid-April showed that the sales area of commercial housing nationwide in the first quarter increased by 63.8% year-on-year; an increase of 20.7% compared with the same period in 2019. Analysts believe that the property market is gradually shifting to second- and third-tier cities. Judging from Tmall’s “618” purchase data in 2020, the growth rate of orders for household products in cities below third tier cities exceeded that of first and second tier cities for the first time. This all indicates that two, three, fourThe ceramic tile market in first-tier cities will usher in a new round of development opportunities.
For these cities, the overall consumption power is not as good as that of first- and second-tier cities, but the demand for personalized home life among the new generation of consumer groups has not diminished, and high-end consumer demand is also gradually rising. Therefore, when most dealers choose brands, they need to consider meeting the needs of the widest range of consumers, so full-category brands with leading strengths have become the first choice. It is not difficult to understand why the above-mentioned urban dealers are rushing to choose Huiwanjia Tiles, a full-category brand of New Mingzhu Ceramics Group.
A company with strong strength
Can protect brand management
Not only the consumer groups in second-, third- and fourth-tier cities, but also the economic classes in first- and second-tier cities have strong demand for middle-class consumers, which will become an important consumer group for the growth of ceramic tile brands in the future. The Huiwanjia ceramic tile brand has successfully attracted the favor of dealers who focus on this part of the market. It is not only endorsed by the strength of the company behind the brand, but also inseparable from the efforts of the brand's continuous transformation.
As the core brand of New Mingzhu Ceramics Group, Huiwanjia Ceramics has four intelligent production bases and top-level production capabilities with an annual production capacity of over 200 million square meters. With internationally advanced production equipment and leading R&D innovation capabilities, product categories, specifications, and colors are not only comprehensive, but also leading the industry, providing brands and dealers with strong sales and supply guarantees, and a complete product system that can meet the needs of the broadest consumer group.
▲Huiwanjia Sanshui Green Production Base
Huiwanjia Ceramics is affiliated to the New Mingzhu Ceramics Group. After 18 years of deep market cultivation, relying on standardized and stable quality and brand strength, Huiwanjia (Group) has cooperated with well-known real estate developers such as Yuexiu Real Estate, Vanke Real Estate, Poly Real Estate, and Evergrande Real Estate. Reach strategic cooperation.
At the same time, it can be seen that capital support plays an important role in the leading companies that have achieved growth against the trend. As a ceramics aircraft carrier, it is a certainty that New Pearl Ceramics Group will land in the capital market. By then, it will effectively drive its brands and dealer groups to achieve a new round of growth.
For dealers with a sustainable development philosophy, they must also be aware of the changing trends in the above channels. Therefore, choosing a leading corporate brand with a strong background is the best way to quickly break into home decoration, decoration, designers and even regional industries.A powerful weapon in the process channel.
Not only that, as graphene products, slates, etc. have become popular products in the market, Huiwanjia brand has relied on the group's product advantages to seize the opportunity and move into the new track of home customization, proposing "high-end slate whole house Customized ecological platform" strategy to create an ecosystem of "door + cabinet application + bathroom application + desktop application + indoor application + customized furniture". Through integrated design and one-stop service, this initiative meets the needs of dealers for cross-border transformation. need.
▲Huiwanjia Slate Table
Master the needs of segmented consumer groups
"Capture" customers for dealers
If strong corporate strength support is a necessary condition for the stable operation of a brand, then differentiated brand tone is the magic weapon for a brand to win.
Today's young consumer groups express their demands for home life that should be warm, considerate, comfortable, safe, fashionable, and unique. This requires ceramic tile brands to attract different consumer segments. Emotional resonance, providing a thoughtful consumer experience.
For example, as a popular brand, Huiwanjia Ceramics has now upgraded its brand slogan - "Thousands of Selection Huize Wanjia" to express the idea of using carefully selected products and prices that benefit the public. To interpret the caring and warm life concept.
"Thousands of choices" represents the brand attitude of Huiwanjia Ceramics and its almost paranoid "reality" in treating products and services. It delivers a new brand to the terminal with its "obsessive-compulsive disorder" style of perfection and persistence from the perspective of consumers. Home life needs.
Today, consumer groups are more refined. There are single young people who pursue individuality and reject the sameness, there are "pet slaves" groups who value warmth and companionship with pets, there are couples living in a world of two, there are young couples who have just had a child, and there are families of five enjoying family happiness. Home... Every age group has different emotional appealsOnly by focusing on the home furnishing demands of consumers at different stages and launching suitable products and services can we maintain long-term vitality in an increasingly "homogeneous" market environment.
It can be seen that Huiwanjia Ceramics fully interprets the different consumer demands of terminals at different growth stages by segmenting consumer age portraits, marking consumer preferences, and classifying consumer needs, and gives emotional endorsement to the product, making ceramic tiles no longer A cold product serves as a carrier to create a loving and warm home for consumers with different needs, which is consistent with the brand slogan of "Benefiting Ten Thousands of Homes".
Through Huiwanjia’s series of renewal actions and investment results, it can be seen that in an industry environment where mass brands are homogeneous, if a brand wants to become a leader in seizing consumer awareness, it not only needs to have strong corporate strength As a support, it also needs to take on the role of communicating with the majority of consumers, especially the role of truly meeting the needs of young consumer groups, in order to bring infinite possibilities for sustainable and healthy development to dealers.
(The article is reproduced from Ceramic Information)
