Brand value needs reflect the home hardware market

In 2011, it will become the peak year for dealers to “replace”, which has already been expected by industry insiders. As early as the beginning of 2010, some industry experts predicted that in the next three to five years, 40% of small and medium-sized production enterprises in the home building hardware industry will be forced to transform or change. The increase in property taxes and the introduction of purchase restrictions, as well as the central bank’s monetary tightening policy, have undoubtedly accelerated the process. In a market environment where demand is low and costs are rising, dealers' “rebranding” becomes inevitable.

In April 2011, the Datong Sanitary Ware Distribution Group visited the Beijing Expo. After the meeting, the author learned that two-thirds of the more than 30 Datong dealers who visited this group clearly indicated that they wanted to change their cards.

They told the author: "In the past, the brand of the agent, the product has no characteristics, the brand has no visibility, the product quality is unstable, and the supply is slow, and the service can't keep up, so I have to change it." The product has no features, the brand has no visibility. The follow-up service is not in place, which is the three major reasons for dealers to change their licenses.

These problems reflected by the dealers have exposed the defects in the operation of sanitary ware enterprises. They only care about the blind investment expansion, but after the store opened, they did not continue to follow up, letting the dealers fend for themselves, causing the dealers to change jobs.

Therefore, companies must be prepared and then expand.

The author conducted a small sample survey on the purchasing power of residents in Datong City and found that for a family with a disposable income of 3,000 yuan a month, if there is no self-owned property, it means zero savings. After they purchase the property, the cost of the renovation can be very small, and some people can only delay the renovation.

At the same time, since 2009, the number of dealers in the home building hardware industry in the second-tier cities has increased dramatically, resulting in a decline in the market share of individual dealers. In order to win more market share, dealers have to “replace” frequently.

The domestic demand market is seriously inadequate, which has largely led to dealers’ “rebranding”. According to relevant reports, the contribution rate of consumption to China's GDP has been declining for decades. In the 1980s, the contribution rate of consumption to China's GDP was 57%. In the 1990s, it was 45%. In 2000, it dropped to about 30%. At present, the contribution rate of consumption is about 25%. At the same time, the high inflation rate has also seriously weakened the purchasing power of residents.

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