The cabinet market is still very immature, the threshold of distribution agents needs to be raised

After 20 years of development in the cabinet industry in China, the market has developed rapidly, but there has never been a national brand. Although I have a lot of large cabinet brands, although they have a mature operating mechanism and market planning, annual sales have also increased year by year. However, the growth rate has not been large, and it is difficult to become a leading company in the short term. One of the reasons for this is the sales channel. One of them is that the agent link is not well grasped, and the entry threshold for cabinet product agents is low.

The cabinet market is still immature

At present, there are about 16,500 domestic cabinet enterprises, but there is no national brand. These enterprises are mainly concentrated in the four regions of Beijing, Shanghai, Fujian, and Guangdong. They are mainly regional brands, and most of the companies are around one million yuan. Mainly for domestic sales.

An article analyzes that China's current cabinet demand capacity is more than 35 billion yuan per year. At present, the annual sales of all the so-called brands add up to less than 10 billion yuan. What is the gap? This is worth reflecting on by every cabinet person! Relevant experts believe that the annual sales of a few leading brands in China should be More than 24 billion yuan, and the absolute annual sales of leading brands should be at least 10 billion yuan, this is considered a mature market, which shows that China's cabinet market is still very immature.

At present, the threshold of China's cabinet market is still immature and needs to be raised

Low entry threshold for cabinet brand agents

Affected by the pressure of competition in the cabinet industry, overall, the current standards for cabinet enterprises in China are low. Many companies are purely for the purpose of attracting investment, and they have little consideration on the qualifications of merchants applying for agents. Some SMEs even only When someone submits an application for an agent and pays money, a cooperative relationship is reached. This too thin and light approach is very undesirable.

Investment promotion is a channel expansion model that most cabinet enterprises are doing. The direct purpose of investment promotion is to allow products to enter the local market, but the ultimate purpose of investment promotion is to extend the brand's sales channels and ultimately achieve benefits. Business investment should be considered from the perspective of the long-term development of the enterprise, and it cannot be satisfied with the temporary benefits.

The distributor of a brand in a certain place is usually one or two, then the image of these two distributors is the image of your brand in a certain place. An unqualified agent will destroy your brand image and make thousands of locals. Tens of thousands of potential consumers lose information about your brand. The cabinet brand needs to be bigger and stronger, and it must be far-sighted in the investment promotion process, raise the entry threshold for agents, and strictly attract investment.

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