What is the "space" in the overall cabinet market in China?

At present, the overall kitchen ownership rate of urban residents is only 2%. In the east and south coastal areas of China, the household cupboard ownership rate reaches 3%, while in the central and western regions it is only around 0.5%. According to authoritative research company statistics, the overall kitchen was in 2003. The annual sales amounted to 460,000 units, which rose to 760,000 units in 2004. It is expected that the potential market for the overall cabinet products will reach 3.1 million units in the next three years, with a growth rate of 120.7%. If the average price is 20,000 yuan per unit, There is a market space of RMB 62.0 billion.

At present, competition in the industry is mainly reflected in design, service, innovation, quality, support, and branding. Orderly competition enables the industry to grow healthily and scale. With the intensification of competition, small manufacturers are likely to face the situation of being eliminated or merged by large companies due to lack of experience in quality management, marketing technology lags, and system cost management, and the strength of large manufacturers is gradually expanding. The influence of the brand is increasing, and the brand effect is becoming more and more obvious. At the same time, the big manufacturers in the related industries are also optimistic about the fat bull. They are not in Linyuan, but rather they are “retired and netted.” There are many big-name home appliance companies that have invested in the cabinet industry.

The low threshold of the cabinet industry is labor-intensive, which has caused some companies or individuals who do not have professional knowledge, lack of production equipment, and insufficient funds to join the industry. Numerous “front-end factory” and “unfamiliar brands” have landed on the beach. In the early stages, adverse competition phenomena such as “snatching”, “malicious attack” and “price reduction” have fluctua- ted up and down, which has had a great negative impact on the operating quality of the entire industry and the reputation of customers.

It is precisely because there is no entry threshold in the cabinet industry, the process is more flexible in sales, more creative, and requires more personality based on the purchase object, so the industry does not even have a complete industry standard, quality standards, size series, style And so on, the Eight Immortals crossed the sea, and each has its own capabilities. Some even do not have any standard. What customers want is what they produce, and the use of cheap inferior materials and non-environmental materials in large quantities triggers a "price war." The demand process is full of irregularities. Service and poor product delivery. As a result, the vicious competition in the "price war" in the industry has become increasingly fiercer. These typical forms of China's competition have resulted in the same appearance and function of products on the market, and the industry's low degree of concentration has seriously hampered the technological upgrading of industries and the development of outstanding enterprises. Kitchen equipment developed already formed between the height of the series, standardized, complete sets, versatility and interchangeability.

In China, there is still a lack of complete specifications for kitchen furniture, kitchen appliances, and construction. In particular, there are some detailed issues, such as the cleanliness dimensions of the kitchen, the layout of the pipeline, and the location of the interfaces. The manufacturer's industrial products are in the process of installation. Often can not adapt to the scene of the situation, need to make temporary changes, this situation objectively restricts the manufacturers of large-scale production and rapid development, cabinets, personalized and large-scale, standardization of the contradiction will be short-term bottlenecks of public manufacturers . Optimistic is that the pros and cons of all things happen! This status quo is also constantly stimulating the growth of China's cabinet industry and the transformation of healthy development. With the continuous enhancement of the overall strength of the formal enterprises, the entire industry will face a new round of "shuffle", small and weak cabinet companies will be out of the market in the "shuffle."

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