China's mid-high-end sanitary ware market space is growing r
According to a new report from the pew research center, the median income in mainland China grew by 2. 5% in the decade after 2001. 3 billion, but more than three-quarters of mainlanders are still underpaid. The lower the income, the lower the consumption level, this is the constant law of market economy, and this just explains why e-commerce can quickly capture the hearts of Chinese people. At present, nearly 80% of the people in China are still in the low-income stage, with the development of the economy and the improvement of living standards, the proportion of the middle and high income class is expected to further expand, which also means that the high-end sanitary ware market has a lot of room for growth.
Middle and high-end sanitary ware manufacturers into the direction of development
Indeed, the ranks of China's richest have always been expanding. From the sales performance of high-end sanitary ware, the performance of large sanitary ware listed companies grew rapidly, obviously the purchasing power of the rich class is not weakened, on the contrary, it is in the rising channel. In the field investigation that sells in wei yu, the wei yu store of many ground city class city also appeared to exceed store of in wei yu of in high end, also explained the growth space of in high end wei yu is not small really.
E-commerce is rapidly emerging as a low-cost channel
As many as 80% of the Chinese people are still in the low-income class, so they are naturally extremely sensitive to the price of sanitary ware. In this phase, appear new low channel, natural meeting swarms in. This explains why sanitary ware e-commerce is booming, even as problems continue to grow.
Indeed, income determines expenditure. Some website article points out: cost of traditional wei yu sale channel is high, the price is relatively more expensive, the person that is willing to go defending bath sells to buy wei yu to be able to reduce naturally. Traditional channels have always been under cost pressure in the competition with the emerging e-commerce channels. How to reduce the sale cost of traditional channel, it is the problem that wei yu manufacturer thinks without a doubt. If the cost can not compete with the emerging channels, the future sales of traditional channels is difficult to optimistic. Especially after e-commerce has better solutions to its various problems, traditional channels will bear greater pressure.
On the one hand, high-end sanitary ware and ten times the growth space. The experience of the United States and Japan suggests that if China can successfully escape from the middle-income trap and jump into the ranks of the rich countries, the richest class should account for about 10% of the total population. That compares with just 1% in China. That means there's ten times more room to grow.
On the other hand, in terminal wei yu still has double to 3 times growth space. In recent years, because of the decrease of labor force, the manufacturer that defend bath has to increase the pay sex pay of employee, and as labor force further decrease, the trend that this one wages grows won't slow down, can accelerate only. The experience of developed countries shows that the proportion of China's middle class is not high enough. There is at least two times more room for growth.