Bathroom market downturn companies play promotional signs to ease the pressure

Compared with previous years, 2012's promotional scene is more lively. The downturn of the sanitary industry has forced sanitary ware companies to be more optimistic about promotional offers such as group purchases and sales promotions. To some extent, it has also become a trick for bathroom companies to ease business pressure. Sanitary brand is a plan for the overall planning of the company to launch promotional activities, and some sanitary brands simply for promotion and promotion, not only a waste of resources but also did not achieve the desired results.

These activities make the Chinese sanitary ware market look bustling, but in reality it is overdrawing the future of the entire industry. If, in the past, the high-speed development of the sanitary ware industry, there were many competitors in the industry and excess production capacity would force some manufacturers to use cost prices. Even selling its products at a price lower than the cost, these behaviors are just an expedient measure to expand the market and seize market share.

However, the price war that has occurred in the sanitary ware industry has begun to change, and combined with the current overall environment of the sanitary ware industry, some companies are inevitably feeling a little broken. From grasping large and small festivals, changing various names to engage in promotions, and inventing various festivals to promote sales, even if there are no titles, as long as consumers come to the store, they do not have to open the clerk to discount themselves.

With the downturn in the market, the domestic sanitary ware industry has evolved from a surviving, rational price war to a vicious price war in which sales are sold off. In this year's market situation survey, many companies told us that overall sales volume showed a trend of growth, a difference of 10%, and a better 30%, but the overall amount of profits was declining.

In fact, in the past few years, the cost of sanitary products has been rising rapidly, from labor costs, production costs, raw material costs, transportation costs to store costs are rising, but the prices of many bathroom businesses are falling, for fear of three-year-old children are Calculate whether this is a loss of business. However, in the face of thousands of sanitary ware manufacturers in China, many of them are small in scale, lack funds, and their main products have low added value. Once the excess production capacity, these companies in order to pursue sales, to keep the level of sales revenue, how can they not hesitate to reduce the price of capital? But this seemingly bustling group buying, promotional feast, what brought to the enterprise, brought to the industry is What kind of future?

An industry veteran pointed out: “The more fierce price wars can only show that companies lack real competitiveness. In an extensive competitive environment, companies cannot provide more value to customers and can only cut prices. Marketing of many Chinese companies The characteristic is that they are not good at combing their fists and they will only kick and kick.” “In constant price wars, consumers’ expectations are changing, and they intend to lower prices before purchasing them. However, they have just bought and found that prices have dropped. After several rounds of downturns, consumers are watching, sales are not going up, and the market has stagnated."

As a result, consumers, distributors, and suppliers will all be implicated, and companies will be enemies on all sides. Ultimately, the entire industry will suffer. In response, Xiongwen Lu added that the company's operations require fixed costs, which depends on the financial system's support. If prices and costs are almost the same and profits are limited, companies that want to fight price wars must first look at whether they have enough strength to persist. Squeezing out other competitors and integrating them...

Because the first-tier city bathroom market is basically saturated, coupled with the current purchase restrictions, the property market regulation, regardless of how sanitary ware sales, consumers do not have much desire to buy. In addition, sanitary ware is a durable consumer product. If quality or other problems do not occur, it is difficult to convince them to replace sanitary ware.

If at this stage, the group purchase conference and the promotion conference will also drive a batch of pre-housing or consumers with improved demand to purchase sanitary ware, then when the economic downturn continues to grow, the number of purchasers will become smaller and smaller. Can not maintain, how should the sanitary ware enterprise and the bathroom industry and where will it go? This problem is worthy of all thoughts.