How does the LVT Flooring manufacturers in china get out of trouble?
Industry insiders pointed out that in recent years, under the advocacy of environmental protection and policy guidance, the survival of the fittest in the industry is at a critical period. A large number of uncompetitive small companies have been eliminated or become processing plants for large-brand companies. Big manufacturers and brands have seized the opportunity to break through and break through with hard power, and continue to strengthen their comprehensive advantages in brand, research and development, quality, safety, and cost. After the reshuffle, the remaining is king, and the increase in market share will happen sooner or later. This may be where the top players are now holding their breath in the game.
As the retail sales of household flooring products account for a relatively large proportion and are highly affected by the epidemic, flooring companies are all affected more.In contrast, thanks to the support and push of policies in recent years, the fine decoration market has grown rapidly. Flooring companies have increased their engineering channel layout and achieved greater results in the first half of 2020.
It is reported that the sales of natural home flooring decreased by 0.6% from the same period last year to approximately RMB 946 million, of which retail sales fell by approximately 49%, but sales of engineering projects increased by approximately 26%.
Del Future Company has stepped up efforts to improve the project layout. During the reporting period, over 60 TOP100 real estate companies have cooperated, and the number of contracted flooring projects and the number of strategic customers both increased by 30% year-on-year.
In the first half of the year, Filinger obtained 24 engineering agency contracts. Completed 600 to 700 sets of engineering projects for household products.
In terms of the order amount, according to the "Technical Guidelines for Residential Decoration Design", the matching rate of the floor category in the fine decoration basically reaches 100%. According to Huaxi Securities’ budget, in 2019, 2020 and 2021, we assume that the penetration rate of fine decoration is 32%, 37%, and 42%. Each set of hardcover houses will be equipped with 46 square meters of floor, and the price per square meter will be 140 yuan. The three-year market size will be 181, 243, At 29.1 billion yuan, the market space is still considerable.
In terms of large home furnishings, multi-category trials of LVT Flooring manufacturers in china are getting results. Both Daya Dekor and Nature Home have wooden door business, especially Nature Home’s wooden door business revenue is about 190 million yuan, a year-on-year increase of 52.9%, and the total number of stores is 819. There are 172 new stores expanded this year. The prospect is worth looking forward to .
In the overseas market, among the 13 mergers and acquisitions in the first half of 2020, the domestic home building materials industry has expanded overseas in 7 cases. Brands such as Mengbaihe and Nature have all made overseas acquisitions. Daya Dekor’s foreign market accounts for 15.20% of total revenue. The layout of the flooring plant of Nature Home in Cambodia has been completed, and the Polish plant has stable sales in the European market. After excluding the short-term impact of the epidemic, overseas sales and proportion are expected to further increase.
Undoubtedly, for the flooring industry, this year is indeed a difficult year. However, there are still opportunities in danger. The significant differentiation of domestic sales channels, the maintenance of substantial growth in sales of engineering channels, and the deployment of production capacity in overseas markets will bring new opportunities for enterprises. There is no bad industry, only bad companies. We will wait and see who will win in the future.