Safe housing and trade-in to bring market opportunities to the kitchen and bathroom industry

"There is no such thing as a catastrophe." Some people describe the kitchen and bathroom industry. In the home appliance industry, old-for-new, energy-saving subsidies and other good news continue to stimulate the home appliance industry, the kitchen and bathroom industry has also ushered in a prosperous development period. However, when the new round of real estate regulation and control policies began this year, the kitchen and bathroom industry has been taken for granted. Although it is the midsummer season, the kitchen and bathroom enterprises feel the chill.

This can be reflected in the data. In the first four months of 2011, the market is still growing at a faster rate, but by May, the retail sales of hoods and stoves have dropped significantly. In the building materials market and the traditional department store market, the impact of kitchen and bathroom products is very large, especially in the first, second and third-tier markets where real estate control effects are obvious.

Many agents and distributors are pessimistic about the market in the second half of the year, and believe that the kitchen and bathroom market will usher in a difficult time in the second half of the year. On the one hand, the real estate control policy will continue to be implemented, and will be fully integrated into second- and third-tier cities from the first-tier cities. The real estate market will be affected, so the kitchen and bathroom industry related to it will also be affected, the market will be more difficult, and there is a possibility of a downward trend. On the other hand, floods and droughts in the first half of the year have a greater impact on farmers' income, which directly affects the consumption power and purchasing power of rural areas.

For small enterprises with no special products and weak corporate strength, as the kitchen and bathroom products of large enterprises sink to the third- and fourth-tier markets, the survival space of small enterprises will be squeezed and will face severe survival challenges.

However, there are also experts who hold different views. From the perspective of affordable housing, 36 million new affordable housing units will be built during the 12th Five-Year Plan period. In 2011, it plans to start 10 million sets of various types of affordable housing and shantytowns, including 600,000 new low-rent housing rentals, 220,000 public rental housing, 2 million affordable housing, and 400 shantytown renovations. Ten thousand sets, these things will be completed nationwide in 2011. Shi Lanlan, executive vice chairman of China Hardware Products Association, believes that although the kitchen and toilet industry is in a downturn, the affordable housing is not a low-rent housing, nor a low-end product. It has a large number of high-end apartment buildings, not for those who do not buy a house. Preparation, so the protection room has a very large development space for many national brands and first-line brands.

In fact, first-line brands still have great confidence in the kitchen and bathroom market. Not long ago, Linne announced that it will fully expand the Beijing market, strengthen cooperation with major chains, building materials channels and traditional shopping malls to provide Beijing consumers with more environmentally friendly, efficient and energy-saving kitchen and bathroom appliances. Lin’s goal in the Beijing area is that in the next five years, Lin’s brand recognition will reach the top three and sales terminals will reach 139.

Some second- and third-line brands have achieved good development in the first half of the year due to their distinctive features and the way to differentiate. Aux Group Shunde Aotale Kitchen & Bathroom Appliance Co., Ltd. has been doing the Oaks brand kitchen and bathroom products. General Manager Jiang Mingxia said, “There are many small manufacturers that have closed down this year and even face the phenomenon of bankruptcy. However, our company has not only declined. At the same time, we have a further improvement trend.” Jiang Mingxia said that Otto has its own R&D center and focuses on building brands. In terms of brand image, he invited He Wei as a brand image spokesperson. And plans to establish the Austrian Industrial Park in 3-5 years. At the same time, the Austrian Kitchen Club also launched its own brand "Otto Music" this year to carry out dual-brand operation. "The two major brands will certainly achieve better results in the future operation and development process, and I am more confident about this, and I have already seen hope."

According to experts, at present, household water heaters and kitchen appliances have entered the stage of urgent need for renewal. However, the long-established “trade-in” policy in the urban and rural markets has not yet benefited kitchen and bathroom products, so the domestic market still has a large number of kitchen and bathroom products. Consumer demand, kitchen and bathroom appliances or become a major boost in the home appliance market in the second half.

The author was informed that in the near future, the old-for-new activities of kitchen and bathroom products will start in Suning.

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