Sanitary ware industry will enter the era of low profit
Time : 2020-04-11 14:56:15
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Let's talk about the bathroom industry from a macro perspective. On the whole, sanitary ware is in a big industry, and a small enterprise "living in a dwelling". The output value of home building materials is nearly 4 trillion, and the kitchen and bathroom industry accounts for about 250 billion. The output value of large enterprises in the kitchen and bathroom industry is only a few billion. Therefore, the image of the bathroom can be called a large industry and a small enterprise.
The output value of the home appliance industry is about 300 billion yuan, and Gree's market share is 30% to 40%, totaling more than 100 billion yuan. Why is the bathroom a big industry, a small business, I think of a keyword "distance". It is a question of how far and how close a company's brand is to consumers. The kitchen and bathroom industry always seems to be separated from consumers by a layer of film, and always has a long distance from consumers.
The distance between the kitchen and bathroom industry and consumers is embodied in that consumers cannot feel the company or the brand power. I think the home building materials industry is still eight to ten years behind the home appliance industry.
When it comes to distance, it involves service precipitation, including the standardization of the sanitary ware industry. If the product is 5-8 years old, if it is not done, it will be very difficult to maintain, because the valve core and seal are not standard, and there is no maintenance point after failure. , can only be thrown away. In Western countries, products such as valves or damaged parts are standardized, which can be bought at any time and are very easy to replace.
The status quo of the bathroom is that if the product is broken, it can only be thrown away and bought a new one, because there are no parts, which is a big waste. Therefore, the service I am talking about includes convenience and reassurance. If there is a problem, you can quickly enjoy services such as maintenance.
The bathroom space can become a space for enjoyment. Many people are reluctant to come out after entering the bathroom. They enjoy it very much. There are music, TV, WIFI, and even interaction with the smart toilet through Bluetooth. The bathroom space is very enjoyable. Of course, these are the requirements for industry services. If you really do well in service, you need to do a lot of meticulous work in the industry, and take into account the feelings and needs of consumers.
As we all know, the current bathroom manufacturers emphasize sales all day long, which puts a lot of pressure on distributors. 10 million this year, 20 million next year, and 50 million the year after, emphasizing sales every day, this is a wrong, impetuous approach to quick success. The real approach should be that manufacturers and distributors should work together to provide services well. The manufacturer sets a target and conducts a 400 return visit. The return visit to Hangzhou is very good, and the satisfaction is very good, and a bonus is issued; the return visit to Beijing is rewarded, and the bad one must be punished. Taking customer satisfaction as a KPI indicator, including the manufacturer's salesperson, they will only deliver goods. The same is true for merchants. All the performance of merchants is a commission system, and bonuses are calculated based on customer satisfaction. In this case, the concept from the factory to the merchant is consistent, and the service can be done well.
As a retailer, in the era of e-commerce, to deal with brands and e-commerce, in terms of formulating service strategies, the bathroom industry has only one, that is, subversion, self-subversion in the face of transformation and challenges.
The Internet has turned regional competition into national competition. In the past, I competed in Hangzhou, Beijing, Dongguan, and possibly the Dongguan area. Now, with the Internet, I must face the national competition. Informatization makes prices more transparent and open. In the future, the sanitary ware industry will enter the era of meager profits. The previous 40% and 50% gross profit will not exist. It will soon enter the era of rational and 20% gross profit. Like a blade, it depends on the hard work, who can control the management and cost well. How do manufacturers and merchants interact and change their roles, not by selling goods for money, but by selling services to make money. You will achieve the ultimate service, take into account customer needs, fast installation and maintenance, train loyal fans of sanitary ware, and make consumers become loyal fans.
The output value of the home appliance industry is about 300 billion yuan, and Gree's market share is 30% to 40%, totaling more than 100 billion yuan. Why is the bathroom a big industry, a small business, I think of a keyword "distance". It is a question of how far and how close a company's brand is to consumers. The kitchen and bathroom industry always seems to be separated from consumers by a layer of film, and always has a long distance from consumers.
The distance between the kitchen and bathroom industry and consumers is embodied in that consumers cannot feel the company or the brand power. I think the home building materials industry is still eight to ten years behind the home appliance industry.
When it comes to distance, it involves service precipitation, including the standardization of the sanitary ware industry. If the product is 5-8 years old, if it is not done, it will be very difficult to maintain, because the valve core and seal are not standard, and there is no maintenance point after failure. , can only be thrown away. In Western countries, products such as valves or damaged parts are standardized, which can be bought at any time and are very easy to replace.
The status quo of the bathroom is that if the product is broken, it can only be thrown away and bought a new one, because there are no parts, which is a big waste. Therefore, the service I am talking about includes convenience and reassurance. If there is a problem, you can quickly enjoy services such as maintenance.
The bathroom space can become a space for enjoyment. Many people are reluctant to come out after entering the bathroom. They enjoy it very much. There are music, TV, WIFI, and even interaction with the smart toilet through Bluetooth. The bathroom space is very enjoyable. Of course, these are the requirements for industry services. If you really do well in service, you need to do a lot of meticulous work in the industry, and take into account the feelings and needs of consumers.
As we all know, the current bathroom manufacturers emphasize sales all day long, which puts a lot of pressure on distributors. 10 million this year, 20 million next year, and 50 million the year after, emphasizing sales every day, this is a wrong, impetuous approach to quick success. The real approach should be that manufacturers and distributors should work together to provide services well. The manufacturer sets a target and conducts a 400 return visit. The return visit to Hangzhou is very good, and the satisfaction is very good, and a bonus is issued; the return visit to Beijing is rewarded, and the bad one must be punished. Taking customer satisfaction as a KPI indicator, including the manufacturer's salesperson, they will only deliver goods. The same is true for merchants. All the performance of merchants is a commission system, and bonuses are calculated based on customer satisfaction. In this case, the concept from the factory to the merchant is consistent, and the service can be done well.
As a retailer, in the era of e-commerce, to deal with brands and e-commerce, in terms of formulating service strategies, the bathroom industry has only one, that is, subversion, self-subversion in the face of transformation and challenges.
The Internet has turned regional competition into national competition. In the past, I competed in Hangzhou, Beijing, Dongguan, and possibly the Dongguan area. Now, with the Internet, I must face the national competition. Informatization makes prices more transparent and open. In the future, the sanitary ware industry will enter the era of meager profits. The previous 40% and 50% gross profit will not exist. It will soon enter the era of rational and 20% gross profit. Like a blade, it depends on the hard work, who can control the management and cost well. How do manufacturers and merchants interact and change their roles, not by selling goods for money, but by selling services to make money. You will achieve the ultimate service, take into account customer needs, fast installation and maintenance, train loyal fans of sanitary ware, and make consumers become loyal fans.