How can the flooring industry get out of the low-profit state?

At this stage, the production capacity of the flooring industry has experienced a period of serious oversupply. Some floor companies may implement new reforms, such as adding more emphasis to product design to get rid of the industry's low profit status and increase the added value of products.

The design has become increasingly important. Flooring companies need to strengthen their transformation. Internationally, enterprises with fashion brands invest in product research and development that generally account for 5%-15% of the company's output value. This means that enterprises with a production value of 500 million yuan will be responsible for product development. The capital investment should reach 25 to 75 million yuan. Comparing with domestic flooring companies, few companies can use 5% of the company's output value to do product research and development.

Transformation and upgrading are inevitable trends, and the core of transformation is centered on brand construction. The core of brand building is the construction of brand design style. The differentiation of brand style is an invincible position in the fierce market competition. magic weapon. In this process, decision-makers at the floor companies must make decisive decisions and work with the times to create their own product design styles. For most companies, taking this step is very difficult.

Promoting brand culture and increasing brand value Jiuzheng Building Materials Co., Ltd. believes that for floor companies, seizing the opportunity to transform and develop brand culture and brand stylized design is the only way out, such as transforming the company into a brand floor design R&D and operation center. While expanding the scale of floor manufacturing for OEM and foreign trade, the company learned lessons from the development of overseas flooring companies, began to increase product design investment at the same time as capacity expansion, improved product design capabilities, and cultivated independent flooring brands. And in the domestic layout of the brand floor marketing network is an important direction of development.

For floor companies, the source of their profit comes from the brand value, while the brand value comes from the accumulation of years of product marketing, and the core of the product is the design (design and material design). Therefore, for each floor company, product design should be the most important part of production. However, for most companies, emphasis is not equal to investment. In contrast, most floor companies invest far in marketing. Far more than the investment in design.