Since the ceramic industry experienced a cliff-like decline in 2018 to the trend theory that "this winter may last longer" in 2019, upstream manufacturers and downstream dealers have been in many different situations. The only thing that can be determined is that the fission speed of terminal channels has far exceeded the transformation speed of upstream brand manufacturers.
Spring River Plumbing Duck Prophet! In order to truly restore the development status of the terminal market, we collaborate to build efficient link channels for ceramic brands. As a mainstream media that has been deeply involved in the construction ceramics industry for 17 years, China Ceramics Network has sized up the situation and specially partnered with professional organizations such as the Marketing Branch of the China Ceramics Industry Association to launch a terminal market research project in June 2018. The project aims to provide the industry with comprehensive and accurate research information and data through the research team's field visits to representative cities across the country, and through the development status of terminal channel fission, to help the construction and ceramics industry find new growth channels in the new development cycle. .
To this end, China Ceramics Network is actively transforming and upgrading to "being a precise media that best understands dealers". The terminal research project has successfully entered Hangzhou, Shanghai, Wenzhou, Nanjing and other cities have attracted great attention from upstream production areas and downstream channel dealers across the country. Recently, the research team visited Xuzhou, a national comprehensive transportation hub and the core city in northern Jiangsu, and conducted research on Asia, Nobel, Champion, Jinyitao, Gold Medal Asia, Dajiulu Super Wear-resistant Marble, ICC, Xinzhongyuan, and Guanzhu. More than 30 dealers and self-contained channel dealers, including , Owen Lai, Mango, Elizabeth, Dongpeng, Matti, Li Home Furnishing, Marco Polo, and Xin Runcheng, conducted one-on-one interviews and surveys. From the experience of many dealers actively responding to current market challenges, the author summarized a new channel understanding: products are channels.
■Phenomena: Consumer trends force dealers to change brands
In the past two years, in response to the 8The aesthetic needs of mainstream consumer groups such as 0 and 90 have forced many moderate popular brands to begin to fade out of the Xuzhou market. On the contrary, mid-to-high-end brands that are fashion-forward and design-oriented have begun to emerge from scratch in Xuzhou and have become the mainstay of the Xuzhou market. Dark horses: such as ICC, the international ceramic tile trend endorsement brand, Owen Lai, the plain modern tile, Elizabeth, the representative of characteristic tiles, etc. These brand dealers have been deeply involved in the Xuzhou market for more than 20 years, and have represented Foshan's large-scale, full-category brands with strong production capabilities. In the new development cycle, they have reduced or even abandoned these brands that once earned them a foothold in their careers. The fundamental reason for a pot of gold brand is that fierce market competition forces dealers to actively cater to new consumer demands. "It's not that we take the initiative to change brands, but the market consumption trend forces us to change brands, otherwise we will be replaced by the market." This is the common sigh of many dealers in Xuzhou market who have changed brands in the past two years.
In answer to the question "What is the primary consideration when choosing which new brand to represent?" The dealer's answer is basically whether the brand's new product research and development and design and color development capabilities can cater to or even lead consumer trends.
■Reason: The primary tool for opening up channels is products
Before the ceramic industry was affected by the Internet, ceramic tiles were low-attention and high-consumption products, and information on products, brands, prices, etc. were not as transparent as they are now. Terminal store sales have not been intercepted by current decoration companies and finely decorated houses. Dealers can basically survive as long as they represent a first- and second-tier brand with relatively large production capacity, guaranteed quality, and a full range of categories. However, since 2016, the wholesale model has begun to intercept the stock market of mid- to low-end consumer groups in large areas in first- and second-tier cities. ; The incremental market in first- and second-tier cities has been repeatedly compressed by the fine-decorated housing policy, and the living space of many dealers was once squeezed. Both upstream ceramic companies and downstream dealers and channel dealers have completely bid farewell to low-level competition. Real market competition has forced dealers and upstream manufacturers to actively transform as consumer demand changes.
It is reported that in order to cope with the current situation of the terminal retail stock market and incremental market being squeezed, many brands develop products in a targeted manner through channel or customer segmentation, and embrace market changes with a more proactive attitude. For example, medium and large enterprises have long taken the lead in the headquarters or established assembly departments or regional branch companies to separate assembly channels, and opened up assembly channel sales channels with more timely and efficient services and higher cost-effective products; while small enterprises have Midea’s specialty brands use fashion trends to differentiate customer groups and develop a certain style of product, providing dealers with opportunities to seize the consumer demand of high-end consumer groups pursuing individualization. “The most powerful tool for opening up channels is products. The premium capability of the product determines how much space we have for channel development. "The Xuzhou dealer said.
■The product is the underlying logic of the channel< /p>
Products are channels. Consumer demands are changing from single and popular to more segmented and personalized. In the ceramic industry, products represent channels
1. Transformation from single product sales to entire space solutions
2. Transformation from promotion of single category products to reach channels
3. Transformation from product price to value experience
In these three dimensions, a single product is no longer the only marketing protagonist. User needs and channel pain points have become the focus of product development and gradient reconstruction. Although traditional channels are still important for the current market competition, the mobile Internet has made it more convenient for consumers to obtain information. The high transparency of brand and price information has forced upstream manufacturers to help dealers or channels through more effective implementation methods. Shangzai provides overall space solutions for mid- to high-end ownersAt the same time, it can more effectively guide consumers to focus on value rather than being sensitive to price.
When the author interviewed Nobel’s dealer in Xuzhou, he learned that Nobel has divided into two echelons, the middle and high echelons, based on the group’s scale advantage and the position advantage of the leading brand of porcelain tiles. With its product structure, single-store retail sales increased by 30% during the same period this year.
For example: On the one hand, we use Nobel's strong scale and production capacity advantages to dilute the operating costs of full-glazed products favored by mid-end customer groups, and use cost leadership to strengthen our position. Harvesting a large number of mid-range customer groups, exchanging price for volume, sales volume increased by 50% year-on-year this year; on the other hand, it used the value innovation advantages of porcelain polished tile products to structurally increase profits and seize high-end customer groups; during the same period, store retail sales increased by 30% .
Products under the new cycle emerge to solve customer needs. Can we provide solutions that are easier to reach through channels, reach users, and not only meet consumer needs? It can be done once and for all; leaders have more market opportunities than followers. "The Xuzhou market will need more professional assembly companies that can handle the entire project in the future, and we also need the headquarters to take the lead in providing more competitive products to help us better serve this trend channel." The Xuzhou dealer analyzed this.
Author: Xiao Fangzou Terminal
