The new mode of the cabinet industry channel wedding room has become a business to seize the highlands

Professionals say consumption upgrades and channel innovations will be the subject of investment. On the one hand, in order to meet the needs of consumers, it is necessary to improve the design of the products and drive sales. On the other hand, if companies are to seek breakthroughs, they must embrace new business models, suppress channel bubbles, increase consumer utility in a way that lowers product prices, and upgrade consumer experiences.

Wedding room becomes a new breakthrough for cabinet enterprises

The consumption of cabinets is three levels, practical consumption, aesthetic consumption and performance consumption. Practical consumption requirements meet basic use functions; aesthetic consumption requires homes to meet aesthetic needs, consumers have a certain purchasing power, and the value appeal to cabinets is "beauty." It is also sensitive to price, and the purchase plan is strong. It will improve its bargaining power through multi-party comparison, group purchase and discount season. Emphasis on product design, material types, environmental protection, and brand awareness; performance consumption is to meet the needs of display and as an investment behavior. Consumers have considerable purchasing power, and the value of the cabinet is "expensive" and "rare". Pay attention to the brand and product origin. In the first 10 years, China's cabinet consumption market is mainly based on practical consumption. In the future, China's cabinet consumption will enter the era of aesthetic consumption, and the requirements for materials, design and brand of cabinets will increase.

The three major drivers of cabinet consumption, real estate investment, wedding, and consumption upgrades have changed. The real estate industry is facing major uncertainties. The number of marriages in China will reach its peak in 2015, and consumption upgrade will become the main driver of cabinet consumption.

The market capacity of the furniture industry is around 600 billion yuan, but there is no mass brand in the industry. The size of a single brand is not large. The main reason is that the consumption of cabinets in China in the past 20 years is mainly practical consumption. The cabinet enterprises pay insufficient attention to the design and lack the ability to operate the brand. The brand distinction is low and no industry leaders have emerged.

New business model enhances consumer experience

Compared with manufacturers, cabinet channel operators have an absolute advantage in the industrial chain, and chain stores are the main sales channels for brand cabinets. The shortcomings of this sales model are: brand companies have low bargaining power, profits are squeezed by channel vendors; chain stores are large in scale, actual single-store passenger traffic is low; circulation costs are high, and brand companies are forced to raise prices, thereby inhibiting to some extent Consumption. O2O mode is suitable for cabinet sales, squeeze channel foam to reduce costs, and information transparency to enhance the shopping experience, which will have a subversive impact on the existing cabinet sales model and even the industry competition pattern. O2O e-commerce brand Melaleuca has only been established for 5 years, and its sales revenue has reached 2 billion, exceeding most of the traditional cabinet industry.

The proportion of custom cabinets has reached 40%, and custom cabinet companies are beginning to seek category extensions to show that the custom cabinet industry is nearing maturity. Industry growth may decline and competition in the future will become more intense.

The investment logic of the cabinet industry will follow two main lines. One is to meet the needs of aesthetic consumption and establish a strong brand: building a strong brand requires the company's multi-faceted capabilities, strengthening design capabilities in the first place, and increasing the proportion of original products. In addition, in terms of brand operation, after-sales service, etc., we must be unique, beyond the expectations of consumers, can truly build a strong brand, and drive sales through the brand. Second, embrace the new business model, squeeze the channel bubble, and increase the consumer's utility in a way that lowers the price of the product, thereby enhancing the consumer experience.

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