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Transformation of sanitary ware manufacturers: judging the situation and seeking development

Posted on April 01 2022

The current situation of sanitary ware enterprises is: product homogenization, overcapacity, vicious competition and so on. As a result, the profit level of sanitary ware manufacturers continues to decline and the profit is meager. In recent years, the sales growth rate of all domestic sanitary ware manufacturers also began to decline. Facing the highly competitive faucet market, manufacturers must size up the situation, transform and upgrade against the trend. Leaders of sanitary ware manufacturers need to change their thinking. In addition to focusing on quality and technology, they also need to upgrade and innovate from the aspects of service, channel and category expansion. The author also found that several well-known domestic faucet brands have begun to make efforts from these aspects, among which Jiumu, Youlai and cabe are successful cases in the industry.

  Attach importance to service and enhance competitiveness

Jiumu, the largest sanitary ware manufacturer in Nan'an, catches market changes, strengthens the transformation of technology, quality and intelligent manufacturing based on quality, and vigorously turns to the role of service provider. Jiumu breaks the traditional manufacturing thinking and provides more high-end and high-quality intelligent products by means of cross-border integration, industrial restructuring and value chain building, so as to meet the market supply demand and promote the benign transformation of industrialization. It is also a very excellent reference case for domestic sanitary ware manufacturers.

Dual channel parallel power generation e-commerce channel

According to statistics, the scale of e-commerce reached 15 trillion in 2015. More and more sanitary ware manufacturers have seen the trend of e-commerce. While developing offline channels, an e-commerce team was established to realize the dual track sales model of offline channels and online e-commerce platforms. Youlai sanitary ware, a faucet factory in the same industrial park as Jiumu, has rapidly expanded e-commerce channels while optimizing offline channels. And make a reasonable balance between offline and offline channels. Based on the product quality of the exclusive store, Youlai has derived a series of products in line with e-commerce to realize the separation of offline and online models. Relying on the brand popularity of Youlai sanitary ware, offline channel providers are encouraged to form teams, and the headquarters assists and trains channel providers' e-commerce teams. "We let Youlai agents share the dividends of e-commerce together," said Lin Li, marketing director of Youlai at an industry Marketing Summit. When many manufacturers start to cut into e-commerce, they solve the problem of online and channel conflict. Youlai model is worth learning from.

Expand categories based on Internet thinking

In Internet channel providers, the single category of sanitary ware manufacturers has been unable to meet the needs of market development. A customer who decorates a new house hopes to buy all the home decoration products needed in the same store. Powerful manufacturers have seen this, expanding from single category to multi category, and then forming a full category brand. The whole category can more effectively share the risks brought by the slowdown of single category market growth and increase the market share of enterprises. More importantly, within the framework of Internet thinking, the whole category has also become the mainstream transformation model for the development of traditional sanitary ware manufacturers. Cabe entered the e-commerce channel earlier and expanded more comprehensively in categories. It not only focused on the main towel rack products, but also added categories such as door locks, which greatly increased the sales of single stores.

Sales model drives production optimization and upgrading

Traditional sanitary ware manufacturers should transform their thinking from production, marketing to service. Information technology is the most important for manufacturers. Build CNC system through information technology, meet personalized and diversified market demand, and establish flexible production workshop. Use informatization to open up the Trinity Mode of production, physical stores and online stores, realize the coordination of design chain and supply chain, serve users more conveniently and in place, and gain insight into market demand.

Under the current tide of comprehensively promoting the supply side structural reform, can sanitary ware manufacturers seize the opportunity to make the supply adapt to the changes of market demand through reform, size up the situation and find a model suitable for enterprise development.