Will Kitchen And Bath Companies Be Consolidated Out Of Real Estate In The Next 5 Years?
Originally Created By Huang Xianjie Kitchen & Bath News
In recent years, there is a phenomenon that real estate enterprises have set foot in the bathroom industry, such as Bi Gui Yuan in Chaozhou high-profile new intelligent toilet factory; there is another phenomenon is that real estate enterprises have “hugging” signs, such as in May this year, Poly Capital and Bi Gui Yuan Venture Capital jointly launched the establishment of “real estate Industry Chain Empowerment Fund”. The fund focuses on investing in two directions, one is centralized procurement in the upstream of the industry chain, and the other is the property platform in the downstream of the industry chain.
What Are The Impacts Of These Two Phenomena On The Sanitary Industry? The Answer May Be Found From A Good Friend Of Mine.
He is engaged in the bathroom professional managers work for 17 years, many of which are domestic first-line brands, a while ago, he told us that he transferred to the real estate industry after understanding a truth: working in the bathroom industry for so long, the brand changed one after another, to the end only to find that the bathroom business can not grow and expand is not the boss’s reason, but the reason for the market.
Lei Jun said, standing in the wind pigs will fly! He believes that the bathroom industry to create a brand of windfall has passed, there are now many enterprises to invest a lot of money desperately trying to develop the brand is very anachronistic, the market no longer need so many bathroom brands exist!
He believes that in recent years, real estate companies involved in the sanitary industry, “embracing” the development of the trend, and he predicted that in the next five years there will be a large number of small and medium-sized sanitary enterprises because of the meager profits of hardcover housing and exit the market. Sanitary ware enterprises at this stage of the integration of large investment in “brand” is not as good as to sink into good products, the use of products to supplement the development of enterprises short board, to extend the vitality of enterprises.
It is worth noting that real estate companies “hugging” development speed may be faster than he imagined. As of August 20, listed enterprises top solid set of creation, Pi’anuo, Opal lighting, Oriental rainbow has issued an announcement, intends to subscribe to the “real estate industry chain empowerment fund” share, said it is conducive to enterprises to further integrate the use of advantageous resources, industry interaction, expand the head customers, industry resources, to provide support for the development of the enterprise’s main business, improve Comprehensive competitiveness.
In addition to the real estate industry chain empowerment fund set up by Poly and Baguio, more than a dozen real estate companies in the Min system have also jointly set up a new department called the Joint Procurement Department this year. The department will jointly procure raw materials including cement, steel, sand and other construction materials in a unified manner, ending the ecological chain of real estate enterprises bidding for raw materials.
Real estate enterprises “hugging” unified procurement, its purpose is known to the world, the supplier of the sanitary ware and so on is not optimistic signal. As we all know, the real estate project bathroom products pricing power is often in the hands of real estate enterprises, even the domestic first-line brand, the short term can not change the current situation.
More worrisome is that, with the full implementation of the country’s refined housing, the bathroom retail market has declined significantly, which is like adding insult to injury for the bathroom enterprises. Compared to the personalized needs of the soft furnishings, standardized sanitary ware parts by real estate companies as a “fat meat”.
“Bathroom compared to sofas, tables, dining chairs, TV cabinets, its personalized needs are weaker, and it has a low threshold for entry, fast production, and quick results, although there are certain technical requirements, but the bathroom products can easily meet the general needs of real estate companies.” The friend said.
The only way out for future home and industrial enterprises is not its brand value added, but the product. In the context of retail decline, real estate hold pricing power, the single product bathroom companies are too small to resist the impact of the market. With the in-depth development of the refined housing, he believes that smart real estate companies will do one thing: advance channel layout, do a good job of integrating resources. “Within five years, you will see many kitchen and bathroom companies integrated by the meager profits of real estate companies.”
The business environment is changing rapidly, and no one can accurately predict the future development trend of the industry, but he discusses the development trend of bathroom enterprises from the perspective of real estate companies is also worthy of your attention.
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