In 2011, the market competition was extremely fierce. How to survive the competition has become one of the most concerned issues of sanitary ware companies. The author interviewed and concluded that we must first have insight into the sanitary ware market. Economic backing.
How to gain a foothold in the bathroom market
Shanghai, the largest city in mainland China and one of the four centrally-administered municipalities, is the center of China's economy, finance, trade and shipping. As an economically cosmopolitan city, Shanghai has always been an indisputable place for businesses from all walks of life, so it has gathered well-known brands from all over the world. As for the increasingly mature sanitary ware industry, major domestic and foreign brands have gathered here one after another.
A gathering place for international brands
Shanghai is not the largest domestic production base, but it is the most concentrated place for international brands. Several international sanitary ware brands have established a Chinese operation center in Shanghai. Shanghai has a strong cultural atmosphere and a high level of consumption. It can be said that the focus on the brand has reached the point of being second to none. At this point, these high-end brands have a large market share in Shanghai, and many domestic brands have turned to the second and third tier markets. With the continuous development of society, the sanitary ware market has begun to polarize, which has led some domestic sanitary ware brands to enter the Shanghai market.
The major building materials markets in Shanghai are mainly distributed in Puxi and Pudong, and they are scattered. The two markets may differ by more than tens of kilometers. The main building materials market includes Red Star Macalline, Evergrande Building Materials Market, Jiuxing Comprehensive Market, B & Q, Haomeijia Building Materials, Yishan Road Building Materials Street and so on. In these building materials markets, there are several major brands everywhere, such as sanitary ware brands: Kohler, TOTO, Roca, American Standard, Duravit, GROHE, Hansgrohe, Hecheng, Dufini, Wrigley , Faenza, etc. The ceramic tile brands are: Xinzhongyuan, Dongpeng, New Pearl, Guanzhu, Loulan, Nobel and so on. In addition, there are some Guangdong brands, such as Olejia, Thai Tao, Continental, Dongzi, Haitong, etc.
TOTO is the one with the most advertising in several major building materials markets, and its advertisements can be seen everywhere. The strength of TOTO in the Shanghai market is evident. Not only is TOTO's operation center located in Shanghai, but there are also many marketing outlets here. It is understood that in the Evergrande market alone, there are about 10 TOTO dealers, and nearly 20 in the Jiuxing wholesale ceramics market. In addition, Red Star and Yishan Road have TOTO stores. In short, where there is a building materials market, there is a figure of TOTO.
Although other international brands do not have the momentum of TOTO, it is not bad, Kohler is not willing to be outdone, a specialty store is very large, and the geographical location of the store is very advantageous. In contrast, several well-known domestic brands are inferior. It can be seen that the competition in Shanghai is very fierce.
The second and third tier markets have become the battlefield of sanitary ware enterprises
Although for the sanitary ware industry, major international brands have successively built China's operation centers—even Asian operation centers—in Shanghai, but with the development of the market economy, real estate in first-tier cities has also become saturated, so many international The brand shifts its operations to second- and third-tier cities. Many domestic brands also recognize this situation, so they have turned to second- and third-tier cities just after entering the market.
However, due to fierce market competition, the popularity and market share of first-tier brands in the market will always have certain advantages over second- and third-tier brands. But it does not rule out the phenomenon of "first come first" in some places. In Shanghai, an economically developed city, housing prices are much higher than other cities. It is understood that the average price of the cheapest property in the local area is as high as 40,000-50,000 yuan per square meter, while the housing price in the vicinity of Lujiazui in Puxi is as high as 100,000-200,000 yuan per square meter. From this point of view, it is not easy for the working class to afford a house, and the decoration will inevitably be in line with their economic strength. Therefore, it is correct for domestic second- and third-tier brands to shift their markets to second- and third-tier cities; sinking and flattening of channels will also be the marketing route for more domestic brands. The second and third tier cities will become a new place for competition between international brands and domestic brands.
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