After the cabinet industry has experienced more than 20 years of development in China, the market growth rate has gradually slowed down in recent years, but the output of enterprises has not declined, and the problem of overcapacity in cabinets has become increasingly prominent.

Overseas market relationship oversupply industry overcapacity

Overcapacity, that is, the sum of production capacity is greater than the sum of consumption power, is a normal phenomenon of industrial development under market economy conditions. Moderate overcapacity is of positive significance for industrial transformation and upgrading. However, excessive overcapacity will cause a large amount of commodities to hoard, affecting consumer expectations and economic growth. As far as the cabinet industry is concerned, in the case that the rigid demand of the property market has not been fully released, overcapacity is also an unavoidable reality.

In the past 30 years, China's urban agglomerations have become more and more large, and successive construction industries are also booming. Taking advantage of the “shunting” of real estate development, the development of China's cabinet industry in the past 20 years China has also made great progress. Many foreign brands have also discovered this huge market in China, and they have entered the market to compete for the market. Therefore, overcapacity in the cabinet industry is more obvious.

Solving overcapacity product innovation is the key

"Our industry has been transformed from a quantitative expansion to a qualitatively upgraded stage. This has new requirements for the company's brand positioning and business strategy." A cabinet industry believes: "Overcapacity is like a sieve, good. The beans are kept, and the cockroaches have to be screened out. This is the market."

When asked how to deal with the common problems in this industry, the industry responded: "In my opinion, there are many reasons for overcapacity in an industry. For cabinet companies, the lack of product innovation and brand building is the key. .

Technological innovation is the “soft rib” of most Chinese companies, and it is closely related to the core interests of enterprises. Nowadays, there are not many cabinet companies that have the conditions to do independent research and development in China, so innovative products are very precious in the homogenization market. Innovation is the foundation of differentiation. Differentiation not only makes the company have market competitiveness, but also stimulates new market demand. It is the winner of the brand. The brand building makes the cabinet enterprises have cohesiveness and diffusion, and become the driving force and power of development.

All in all, if cabinet companies want to break through the bottleneck of development, they must work hard on product innovation and brand building.

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Label: Cabinet companies solve overcapacity product innovation is the key

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