Due to the low barriers to entry in the cabinet industry, many companies lack strong technological innovation. When the price war in the cabinet market is getting more and more fierce, many cabinet companies are trapped in cost-driven “weird circles†and cannot afford to be active in the national market. Enterprising and in-depth development.
Price wars have disadvantages for SMEs
"In the past two years, the price war in the cabinet market has become more and more fierce, but the raw material cost, labor cost, and service cost have only risen and fallen, and the market performance is not optimistic." A person in charge of the cabinet company said that in the past two years, Most of the brands that continue to be active in the national market are large enterprises. Although many small and medium-sized enterprises have not closed down, they can only rely on several single-engineering businesses that have been brought up by the relationship.
The ongoing price war is the root cause of the lack of motivation in the cabinet industry. The price war is picked up by many small and medium-sized enterprises. In the face of large cabinet enterprises, they began to clean the market with the help of brand and scale advantages. Many small enterprises began to take price wars at the expense of profits. As a result, large enterprises have sufficient strength to consume, but small enterprises are eliminated.
Strive for market share without sacrificing quality
According to industry insiders, the production and processing of cabinets is relatively simple. As long as a company has a basic production line, other parts of the products, such as plates and countertops, can be purchased socially. Some small and medium-sized manufacturers have small investment in the early production line, and do not need technical research and development investment. There is no advertising and publicity fee. Even some taxes and fees can be reasonably avoided. This has caused the low-priced cabinets on the market to emerge in an endless period of time. In order to reduce costs, well-known brands have adopted the method of customizing “super low-cost cabinets†on the outside, in order to sacrifice quality for market share.
In the absence of technological innovation and product replacement, small and medium-sized cabinet companies have no way out. "Some companies cut corners in order to fight low prices." A cabinet industry frankly said that low prices are "black sheep." Cabinet companies must return to the value-added competition such as improving product quality and service, and abandon the price war to have future development.
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