Market competition, private Hardware Enterprises to Go? - Bathroom hardware, sink, faucet - Hardware Industry

Market competition, private Hardware Enterprises to Go

? - Bathroom hardware, sink, faucet - Hardware Industry

Here are some figures: in 2005 the market scale of China taps about 300 billion industry Sell Output grew 32.75 percent over the previous year, profit growth has reached 44.49 percent, showing blowout outbreak. Look at the numbers, the market seems to be very well done. However, with further research, the results are not optimistic, 300 million Bathroom Industry, there is not even a local brand sold more than 500 million! Almost all high-end market, occupied by foreign brands, even if the use of imported brand of sanitary ware products have become Hotel Assessment star hotel standards!

In Kohler , American Standard, TOTO crazy advertising campaigns and brand appeal under the 3000 local businesses to struggle to snatch the profit margin is only 10% of the low-end market. There are national policies of mandatory rule, the monopoly of foreign brands in competition, under the price of domestic brands compete for many small, private enterprises Where is the way out?

Sanitary industry in China three stages of development

China sanitary industry competition is mainly in the local brand and foreign brands competing on the market, through three development stages:

Strategic pattern of regional economic decision early last century, the late 90's, American Standard, Kohler, TOTO, and other international brands to enter China, the coastal open cities is its first strategic entry points, target market straight cut luxury hotels, office buildings, high-grade Residential. For a long period of time, local brands and social underdevelopment in the majority of less developed regions, the two camps of basic non-aggression. No movement during this period seems, in fact, the market is the most terrible darkness. Domestic brands numb to live a happy Xiao Rizi, completely unaware of a crisis is approaching, and foreign brands are making money in the orgy, effortlessly, this stage is the most profitable foreign brands of golden age.

2000 to 2005, with the mainland's economic growth accelerated, the developed coastal urban economic growth slows, profits of foreign brands keen sense of smell began to mainland China, the general level, the secondary market advance, then that target high school bathroom stall market, with domestic enterprises gradually close their markets. At this time, foreign brands still account for more than 80% market share in high-grade, low-end market share for domestic enterprises 3000 divided the local sanitary national brand yet born. This stage, domestic firms like disarray, a powerful strategy for foreign brands to appease deterrence, again beautiful mountains and rivers on a plate.

2005 years later, with the continued growth of China's economy, consumer purchasing power is gradually increased, consumption increased degree of freedom, previously could only look up the foreign brands are also included in the list option to the consumer as the center of the consumer will the arrival of the colonial period, foreign brands strategic depth correspondingly lengthened to start touch the core interests of China-made brands, and even some county-level markets everywhere Kohler, the United States the subject billboard. Foreign brands in China at all levels to fully occupy high positions in the market, the market competing interests of the two camps began to intensify.

In this context local bathroom business to do?

Consumers to buy things is always to the point of view, they even were on hand as tight can not afford foreign brands, will also face psychological preferred choice for "famous brand"! We are still in the market for the campaign showed intense moment, branding strategy, which is fast Marketing Wisdom. A strategic height is necessary. But only a high degree of success is not enough, no one brand can not sell quickly if the upgrade is not a good brand.

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