How to do a good job in the bathroom industry? Bathroom brands must be paid attention to

Posted on April 01 2022

Listing is a Nirvana process for enterprises. After listing, the capital pressure of enterprises becomes smaller and can have more energy for diversified development. At the same time, listing means that the company will become more formal and strict in corporate management, financial approval and other links, and the operating cost of the enterprise will rise. The requirement of listing for the enterprise is high growth. How to carry out high growth on the premise of increasing operating cost is an experiment in itself.

To promote the reshuffle in the industry, the sanitary faucet industry is undergoing a "big wave washing sand" change and change. As a resource industry, the resources will be increasingly concentrated to the sanitary brand enterprises. Under the continuous pressure of China's real estate, some enterprises can not bear the cold of "cold winter", and will inevitably withdraw from the competition, and some vulnerable sanitary faucets and sanitary brands will withdraw from history.

Bathroom brand effect or become the killer mace to grab the market

Financing and listing is a shortcut to make enterprises bigger. The market share of domestic sanitary faucets is not high. Almost all foreign-funded VC and PE claim to provide value-added services other than capital input for investment enterprises, assist enterprises to explore the international market and accelerate the development of enterprises by using accumulated resources. The capital flow plan of the net fund-raising income of sanitary faucet Enterprises: 23% is strategic M & A; 22% is used to expand and enhance the distribution network of the group's products; 20% for the development of the group's existing bathroom brands; 15% for expanding and optimizing its production line; The expenses of developing new products and working capital account for about 10% respectively. Everything is to prepare for competition. It is conceivable that once the fund-raising is successful, the bathroom brand promotion front under China's bathroom faucet will cover TV, magazines, outdoor, Internet and other emerging media in an all-round way, and the impact of the bathroom brand will be self-evident.

With the increasing maturity of sanitary faucet technology and the improvement of patented technology, consumers' purchase of sanitary faucets is not mature in some areas. As household durable consumer goods, environmental protection, bathroom brand, durability, service and price are the correct choice. Pay attention to the correct ranking order of the six elements. After the financial tsunami, 67% of the national bathroom faucets and regional bathroom brands have gone or are facing bankruptcy, resulting in the "bathroom faucet orphans" who can not find after-sales service and maintenance in the homes of countless consumers. The market share of sanitary faucets of domestic sanitary brands is not high. The phenomenon that regional sanitary brands are eliminated by the market shows that national first-line sanitary brands have unshirkable responsibilities and obligations for their own sanitary brand construction and the guidance of rational consumption concept. "

Nuggets second and third tier market of first-line bathroom brands

With the acceleration of urbanization in recent years, more and more household consumption demand has been highlighted. It can be said that where there is demand, the product will radiate to where. After the first-line market is becoming more and more full, there is not much space for the leading bathroom brands to survive, and they can only march into the second and third-line market with wider space. Moreover, due to the closed channel characteristics of sanitary faucet, the possibility of industry reshuffle initiated by the channel operator of sanitary faucet is greatly increased.

Expand production equipment positioning after 80 and 90

15% is used to expand the existing production equipment, including improving technology, developing new products, expanding production scale, etc. Now consumers have become more rational and can no longer be attracted by simple low prices and gimmicks. Instead, they need real service and qualified product quality to meet the needs of consumers. In recent years, many sanitary faucet enterprises have released new products with various styles, obviously targeting the post-80s and post-90s with consumption style.

M & A integration wins the weight of resources

The proportion of M & A exceeds one fifth of the fund-raising income, and has the greatest impact on small and medium-sized enterprises of sanitary faucets. In fact, as early as a few years ago, some bathroom faucet enterprises realized the value of the industrial chain and put it into practice. Through the control of upstream raw materials and substrate production, they carried out multi bathroom brand strategy, horizontally covered the categories of bathroom faucets and sanitary ware, rapidly expanded the categories, and created a strategy of integrating multi bathroom brands, thus gaining the weight of victory.

So, which enterprises will be affected by the reshuffle? What shape will the final industry pattern be? It's hard for the author to speculate, because the sanitary faucet industry is an industry with relatively low barriers and thresholds. After the reshuffle, tens of millions of sanitary faucet manufacturers will fall down, and tens of millions of new sanitary faucet manufacturers who are not afraid of death will be born. All sanitary faucet enterprises should be prepared.

Many powerful first-line Sanitary Ware brands in China have been favored by foreign venture capitalists at the best time of the market, and this period has indeed gradually come to the time when these venture capitalists collect funds. Therefore, enterprises are also faced with the possibility of venture capital withdrawal if they are not listed. After capital withdrawal, enterprises are faced with capital problems and are difficult to continue to develop. At present, the tightening of the whole bank loan policy also forces enterprises to be listed to a certain extent. However, it is said that it is "listed". In a capital market, it is promoted to enter a certain stage because of the hand of capital or the law of the market. The survival of the fittest under the pain can not be said to be a bad thing? In this era when the capital recovery period is approaching, we might as well wait and see what kind of listing trend the sanitary faucet industry will usher in in in the future and what kind of change the pattern will have in the future. It's just the so-called competition between heroes. The victory and defeat is geometric, and it's first known.