The development of yuanlongduo product chain is no

2022-07-22
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Latex paint industry is developing this kind of market with great fanfare and increasing investment in this field. Why can we only consider how to seize the less and less rigid demand share

interview guests: Wang Fei, general manager of Ningbo Yuanlong decorative materials Co., Ltd.

curtain world: in the context of fierce industry competition, the trend of multi product chain development is becoming more and more obvious. Does your enterprise support the development route of multi industry chain or adhere to the route of deep cultivation and strengthening of single products

president Wang: I think these two routes are not contradictory in nature. It mainly depends on the timing of choice. Whether the timing is appropriate depends on the characteristics of the enterprise and its development stage. At present, the wallpaper industry has multiple industrial chains because the effective flow of a single wallpaper has been significantly reduced. In order to improve the survival competitiveness of itself and its agents, and expand profit points, they are forced to do so, especially brand stores. However, after years of continuous construction, the national network of a few well-developed imported brands has basically taken shape or most regions have taken shape. It is no longer possible to quickly stimulate and balance sales by simply increasing the number of exclusive stores. In recent years, although the utilization rate of wallpaper has been rising, the proportion of home decoration users using wallpaper is far from reaching the ideal state, so the development of multi product chain has almost become the only choice. However, if it is a wallpaper manufacturing factory, I think it is still necessary to base on the fundamental, refine and strengthen, deeply cultivate and develop, invest more in technology and research and development, less plagiarism, and do not use inferior materials that cannot meet environmental standards, Follow the development pace of wallpaper manufacturing industry

at any time, good products are the basis for the development and growth of the industry. If you blindly compete for prices and make cheap goods, no matter how long the diversified industrial chain is, it will not last long. Therefore, I think that at present, only a few companies that are suitable for the development of multiple product chains are represented by excellent import brands and have created a relatively mature monopoly system in China. As wallpaper manufacturing industry, For most enterprises, the development of multi industry chain is a behavior of blind advance and lack of foresight planning

curtain world: according to the current situation, what do you think is the most fundamental problem restricting the development of the industry? Can you share with us in detail

president Wang: whether the enterprise can achieve good development depends on how many current problems you can solve. At present, there are three fundamental problems that restrict the development of the wallpaper industry. Once solved, the enterprise can develop rapidly

1. Sellers lose bargaining power

homogeneous products have excess capacity, and the relationship between supply and demand has been inverted for a long time. Everyone desperately imitates each other. Without the support of technology and style, they blindly stimulate the sales enthusiasm of agents through price reduction. After several years of fighting, from the perspective of the whole sales chain, all links of raw materials - factories - wholesalers - retailers have lost their bargaining power, and most of them are almost unprofitable. Losing their bargaining power is a dead end for both multi product chain development and single product development. However, we should also realize that this period is also a golden opportunity for enterprise development, and the market is in urgent need of differentiated product brands, Whether it is style differentiation, design differentiation or process differentiation, once barriers and advantages are formed, the brand will be enthusiastically pursued by the market and accelerate its growth. There are several fast-growing new factories in China, whose sales and profits can achieve substantial growth, because they have a clear positioning, do not go big and comprehensive, grasp a certain style and process, and work hard to achieve success, which is the best evidence

Yuanlong wallpaper is determined to become the strongest manufacturer in Asia in the future. It has the most advanced assembly line in the world, a surface molecule research center under the long-term guidance of foreign experts, and has mastered a number of domestic exclusive wallpaper production technologies. After these advanced wallpaper technologies are successfully combined with design and development, they will gradually form different wallpaper series. Each series is supported by 1-2 special technical barriers, and everyone has it, So as to form product differentiation. Let the agents have no worries when selling. They don't need to be busy comparing prices every day, and gradually obtain the opportunity and power for benign development. The longer the time is, the more differentiated products Yuanlong can provide, the more invincible the agents can be

2. The actual parameter standards and environmental protection and safety problems of most wallpaper products in the industry have reached the point that they must be solved immediately because of the long-term price war

the repeatedly reduced sales price has forced the wallpaper manufacturing industry to reduce prices to meet the support of major raw material manufacturers in the past few years. In fact, it is forcing raw material manufacturers to sell materials with lower standards and quality in disguise. The non-woven fiber content has decreased from 25%-30% of the international standard to 15%, and then to about 5%. The product coverage, non-woven shrinkage, color fastness, surface oxidation resistance, and the actual service life of wallpaper have been greatly reduced. In the long run, once the after-sales problems of wallpaper break out, consumers will give up wallpaper, which will be a heavy blow to the whole industry. Although the association has spent a lot of energy to publicize and formulate new industry standards, training and promotion, trying to improve the quality and safety status of the whole industry, how can the price war that has been as low as the floor support these standards

consumers pay more and more attention to the safety of decoration materials. The standards of many domestic building materials industry have reached the advanced level abroad, and the wallpaper industry still has a long way to go. As one of the few domestic representative enterprises fully exporting to the European Union, Yuanlong has been exposed to a large number of high standards and requirements in the process of serving foreign customers for a long time, and has mastered more advanced and safe formulas and inspection technologies. Why can't we only serve foreigners and let Chinese people spend less money to enjoy the same safe and environmental protection products as European consumers? Isn't this a huge business opportunity? In the past 3-4 years, when most of the peers across the country were forced to sacrifice product quality due to price war, Yuanlong went against the trend and successively established strategic partners with Dresden, the world's largest 150 year non-woven manufacturer in Germany, and vinnoiit, the world's largest PVC resin manufacturer in Germany, to strive to increase the import rate of raw materials from 70% to more than 90%, and gradually form non-woven base paper, imported PVC size A complete set of material supply chain, such as imported ink media, has enabled Yuanlong products to continuously pass the EU CE quality certification, VOC organic volatile gas safety certification, EU REACH wallpaper solid residue safety and environmental protection certification, and FSC forest rainforest certification. At present, Yuanlong's whole system products have fully reached the safety and environmental protection level of European wallpaper products. In terms of environmental protection and safety, it has formed a huge safety differentiation with most domestic manufacturers, and gradually established a double barrier of manufacturing technology and product safety standards

3. The vast majority of manufacturers in the industry are fixated on the wallpaper rigid demand market, instead of considering exploring new wallpaper user groups, only considering bleeding and sweating in the red ocean, rather than exploring the real blue ocean

although the wallpaper industry looks very difficult at present, in fact, the domestic wallpaper market is far from reaching the saturation stage, and there is a huge stock market. Our close neighbors Japan and South Korea, the usage of wallpaper has already crossed the threshold of 80%. Due to population reasons, the proportion of rigid demand has long accounted for a small part of wallpaper sales, and even gradually reached saturation more than a decade ago, But it does not affect the sales scale of the wallpaper industry in these two countries, which is billions and billions every year, and excellent world-class representative enterprises can emerge. How can they do this? Because only a small part of their wallpapers are sold to just in need users every year, and the vast majority of sales are used by home users for 2 times, 3 times or even n times

in these two countries, due to the years of publicity and guidance of the wallpaper manufacturing industry, relying on the high standardization of wallpaper construction companies, the primary decoration material Wallpaper of consumers is transformed into a fashion industry, and consumers are trained to form the habit of repeatedly changing consumer wallpaper, which is also the inevitable direction of the development of the industry. China has a huge stock of old houses. Hundreds of millions of users have used latex paint and wallpaper for more than 10 years and still haven't changed them. If our industry can learn from the development of color TV, mobile phone and other industries that have already reached saturation, so that customers who have used wallpaper or latex paint can develop the habit of changing wallpaper, then our market will be hundreds of times larger than now. Of course, we should also see that the latex paint industry is vigorously developing such markets and increasing investment in this area. Why can we only consider how to seize the less and less rigid demand share? In this context, arguing about product diversification and product simplification cannot solve the final development problem

curtain world: in 2017, based on the general development trend of wallpaper curtain and other soft decoration industries, what is your company's development plan next

president Wang: Yuanlong's national brand building road is divided into three stages. The first stage is from 2017, we will fully promote our European standard store franchise plan nationwide, put the country's huge agent system to the rough, save the essence, focus on the support, and establish a European standard store service system. We plan to establish 500-600 Yuanlong European stores in China in the next three to five years. Selling wallpaper products that meet the international high environmental protection and safety, imported paper safety and quality standards, and truly achieving the European safety standard parity store that is all in stock and allows return and exchange, which will produce a leading advantage of great differentiation in domestic brand management

in the second stage, the original imported wallpaper products of European partners will be gradually introduced to form a product system of "imported European standard + domestic European standard", so that national brand stores can fully cover high, medium and low consumer groups, and users with different purchasing power can purchase satisfactory goods in Yuanlong's European standard store

in the third stage, while adhering to the fundamental principle of becoming bigger and stronger, we will gradually introduce strategic partners such as murals, curtains, and wall coverings that can also meet European high environmental standards, so as to form a diversified development path in the middle and late stages of the national network development

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