Problems left by factory cabinet customization in the past 5 years

Recently, major custom home furnishing companies have successively released their 2021 annual reports. Judging from the current data, we can see the growth side. For example, Oupai, Zhibang, and gold kitchen cabinets have maintained a growth rate of more than 30%. Especially, Oupai has entered the camp of more than 20 billion. The fundamentals are positive, and there is still a lot of room to be tapped in the future.

Overall, the brand concentration in the market still needs to be improved. The market share of CR10 is very limited, and the brand is not well recognized by consumers, and even some unfavorable factors are exposed. For example, the explosion of real estate companies has resulted in some companies' net profit. Affected by a great deal, for example, Sophia's revenue exceeded 10.4 billion yuan, a year-on-year increase of 24.59%, and the deducted non-net profit was only 31.67 million, a year-on-year decrease of 96.98%. This is not an exception. This also reminds us to re-examine the current business situation. The current time is very special. It has been 5 years since the listing tide of the customized industry. The industry has reached a new watershed, and the competition is entering the second half.

In the past five years, the changes in the customization industry are not only the operating data such as revenue and profit, but almost all of them have experienced a rise in growth, more or less, but in different degrees. At the same time, the competition pattern of the entire industry has also changed, and the head effect has gradually increased. It is highlighted that the disparity in market value between them has widened.

The customization industry is the beneficiary of market dividends, and a number of listed companies have been achieved. After the listing, everyone was busy expanding categories, opening factories, and expanding production capacity. They were not satisfied with the sale of single products such as cabinets, and turned to providing overall space solutions. The market continued to evolve new concepts such as whole house customization, large home, and whole home customization. No matter which gear of enterprises, almost all of them are involved in these lively concepts.

On the surface, these routes seem to be logically self-consistent, but growth is still everyone’s mantra and a big problem. The annual cost and expense investment only increases and does not decrease, which can never lead to an ideal result. Instead, it intensifies more anxious market sentiment.

On the other hand, who is creating the growth anxiety? Actually it is ourselves. Over the past few years, everyone has been diligent in tactics, but lazy in strategy, resulting in no "qualitative" changes in the entire industry, and even being "bad", and everyone is deeply caught in a price competition. Low-dimensional, when encountering bottlenecks in performance growth, it is more to win attention through marketing involution and following the trend.

In this business environment, it is easy to ignore the essence of the industry and the cultivation of internal skills in order to pursue fancy marketing methods. Cabinets were originally a very professional category for customized tracks, and they are the basic disk of many companies. However, because Various non-healthy and benign competition methods have made the entire sub-category fail to highlight the competitiveness of the brand height, especially the domestic cabinet enterprises have not yet formed a brand camp.

And this also exposes the potential deep-seated problems in the factory cabinet customization industry, big track, small brand, if market dividends have spawned a number of industry brands, at this stage, the radius of influence is still very small. The high-quality development of a category or an enterprise is bound to complete the upgrade from an industry brand to a consumer brand and to an international brand, which is also the "homework" left to many companies at present.