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How to do a good job in the bathroom industry

Posted on March 01 2023

Going public is a nirvana process for companies. After going public, the company's funding pressure becomes smaller and it can have greater energy for diversified development. At the same time, listing means that the company's management, financial approval and other links will become more formal and strict, and the company's operating costs will rise, and the requirements of the company for listing are high growth. How to achieve high growth under the premise of increased operating costs This is a test in itself.

Promote the reshuffle in the industry. The bathroom faucet industry is experiencing a change and change in the "big waves and sands". As a resource industry, bathroom faucets will increasingly concentrate resources to bathroom brand companies. The continued pressure of China's real estate, some companies cannot afford " The "cold winter" will inevitably withdraw from the competition, and some weak bathroom faucet brands will withdraw from history.

Bathroom brand effect or become a market killer 

Financing and listing is a shortcut to make the company bigger. The market share of domestic sanitary brand sanitary faucets is not high. Almost all foreign VCs and PEs claim that they can provide value-added services other than capital input to investment companies and assist companies to develop international markets. Use the accumulated resources to accelerate the development of enterprises. Sanitary faucet enterprises' net proceeds from fund raising plan: 23% for strategic mergers and acquisitions; 22% for expanding and strengthening the group's product distribution network; 20% for developing the group's existing bathroom brands; 15% for expanding and Optimize its production line; the costs of research and development of new products and working capital each account for about 10%, everything is prepared for competition. It can be imagined that once the fundraising is successful, the sanitary brand promotion fronts under the Chinese sanitary faucet will cover TV, magazines, outdoor, Internet and other emerging media in all directions, and the sanitary brand impact brought by it will be self-evident.

The bathroom faucet technology is becoming more mature and the patented technology is becoming more and more perfect. Consumers choose bathroom faucets that are lacking in some areas and not mature. As a household durable consumer product, environmental protection, sanitary brand, durability, service, and price are the correct order to pay attention to the six elements. After the financial tsunami, 67% of the national sanitary faucet regional sanitary ware brands have been or are facing closure, which has caused countless consumers' sanitary faucets to become "sanitary faucet orphans" who cannot find after-sales service and maintenance. The market share of domestic sanitary ware faucets is not high, and the phenomenon of regional sanitary ware brands being eliminated from the market shows that the national first-line sanitary ware brands have an inescapable responsibility and obligation for their own sanitary ware brand construction and guidance of rational consumption concepts. "

First-line sanitary brand nuggets second- and third-tier markets

With the acceleration of urbanization in recent years, more and more home consumption needs have been highlighted. It can be said that where there is demand, the product will be radiated. After the first-tier market is gradually full, there is not much room for sanitary faucet brands to survive, and they can only enter the second- and third-tier markets with wider space. Furthermore, due to the closed channel characteristics of bathroom faucets, the possibility of industry reshuffle initiated by channel operators of bathroom faucets has greatly increased.

Expansion of production equipment positioning after 80, 90

15% is used to expand existing production equipment, including improving technology, developing new products, expanding production scale, and so on. Today's consumers have become more rational, and can no longer be attracted by pure low prices and gimmicks. Instead, they must meet the needs of consumers by providing genuine service and quality standards. In recent years, many sanitary faucet companies have released new products with various styles, which clearly targets the post-80s generation and post-90s generation.

Merger and acquisition integration to win resources weight

The proportion of mergers and acquisitions exceeds one-fifth of the proceeds from the fundraising, and it also has the biggest impact on the SMEs of sanitary faucets. In fact, as early as a few years ago, there were sanitary faucet companies that realized the value of the industrial chain and put it into practice. By controlling the production of upstream raw materials and substrates, they implemented a multi-bathroom brand strategy and categorized sanitary faucet wares in the horizontal Coverage, rapid category expansion, and the strategy of creating a multi-bathroom brand as a whole, which has won the weight.

So, which companies will be shuffled? What is the final industry pattern? This writer is not easy to speculate, because the bathroom faucet industry is an industry with relatively low industry barriers and thresholds. When a number of sanitary ware manufacturers have fallen, there will be tens of millions of new sanitary ware manufacturers that are not afraid of death. All faucet companies should be prepared to respond.

 Many domestic first-line sanitary ware brands have been favored by foreign venture capitalists at the best of market conditions, and this period has indeed gradually come to the moment when these venture capitalists gather funds. Therefore, companies also face venture capital withdrawal if they do not go public. After the divestment, companies face funding problems and are unable to continue to develop. The current tightening of bank loan policies has also forced companies to go public. But it is "listed". In a capital market, because of the hands of capital or the laws of the market, it is pushed into a certain stage. The survival of the fittest under the pain can not be said to be a bad thing? And in this capital recovery In the coming age, what kind of listing trend will the sanitary faucet industry usher in in the future, and how the future pattern will change, we may wish to watch it change. As the so-called herd chasing the deer, the victory and defeat geometry, the first see.