Unscrambling the transformation and development of Chinese wood companies

Since the financial crisis, the export path of Chinese wood companies has also been hit hard. More and more export companies have switched their heads into the domestic market. It is not hard to see these brands in the hypermarkets, brand independent stores and suburban warehouse-style experience stores. However, there are still quite a number of export companies that are still holding back their foreign trade and refuse to switch to the mainland. It seems that the "sunshine road" does not go beyond the "single-wood bridge" and hides the difficulties of exporting enterprises.

The market is too crowded. China's forestry industry has many sub-sectors, all of which have varying degrees of entry barriers. Smaller companies in the workshop category emerge one after another, and their individual influence may not be worth mentioning. However, as they become more aggressive, they will inevitably squeeze market share and competition in the domestic industry will become increasingly fierce.

The crisis period is the best time to test the maturity of the brand. The financial crisis will promote the industry to reshuffle and eliminate backward production capacity. Potential newcomers may gain a chance to leapfrog. However, for the export companies that have just tested the domestic market, the risks and hardships are not ambiguous: During the economic downturn, people are often more willing to choose existing mature brands. From labeling to domestic self-built brands, it will take a while before new arrivals to emerge in the domestic market.

The channels are too narrow. Who owns the brand and channels? Whoever has the right to speak For the majority of small businesses with floor production of only tens of thousands of square meters, the strong control over the channels is clearly out of reach. Although companies are proud of the performance and quality of their products, they can pat their chests and pack tickets, but how to sell good products is still a big problem.

"Inviting investment, advertising, there is not enough financial resources, is not equivalent to playing tricks, no effect but also labor and money!" A wood factory manufacturers say out of the way, the export business of IKEA, Qumei, Hongxing Meikailong and other home The overlord of the building materials channel also respects them. “These big shopping malls are too deep, and if they are not good enough, they can't get out completely. I am afraid that one year's sales are not enough to pay people's expenses, and they may have to pay the money by the end of the year.”

There is no difference in market competition. How can there be outlets? Intensifying competition is the most prominent phenomenon in the development of the industry in recent years. If you want to establish a foothold in the domestic market, it is impossible to have no real skill. In the past, relying on popular products to enter the domestic market was very difficult. All products are the same. How can consumers be favored? In the low-profit era, relying on lower prices is not a long-term solution.

Industry experts commented that export companies are not unwilling to make progress and are unwilling to change the status quo to increase domestic trade. There are certain differences in channel construction, brand positioning, business models, transaction methods, transaction size, settlement methods, and credit ratings. The change will make it difficult for foreign trade companies to cooperate with domestic companies. The severe market segmentation and high hidden costs make it difficult for some foreign trade companies to adapt to the domestic consumer market. To develop in adversity, we must first increase our market share and expand market share. Second, product types should be rich. To understand the actual needs and preferences of consumers in the domestic market, to provide suitable and targeted products, only to cater to them. The real demand of consumers, consumers will pay; the third is the price is reasonable, cost-effective products can be favored by consumers.