Cabinet companies must strengthen cost control

While the industry background, development environment, and market conditions are all undergoing profound changes, the cabinet industry is also facing severe challenges. The transformation of China's industrial economy has led to an increase in the operating costs of enterprises, and profits have been further compressed, and the topics of transformation and change have been put on the agenda. Cabinet companies must find their own way of survival under the “micro-profit” pattern.

Cupboard industry enters a period of “micro profit”

"Micro profit", hence the name Siye, refers to a modest profit. After a short-lived boom in the era of profiteering, more businessmen have turned their attention to the cabinet market, and competition in the cabinet industry has become increasingly fierce. These new companies, whether or not they have relevant industry backgrounds, simply faked them, lacked technical and experience support, lacked professional designs, and lacked production processes. The major manufacturers flocked to the market and earned a lot of money in that era.

However, the moment of extreme prosperity does not mean that the Great Pole I, the development of the cabinet industry in the end still have to be subject to many factors, the impact of the upper reaches of real estate is particularly profound. Although the market demand for cabinets is huge, the growth is limited. The contraction in the property market has slowed down the growth rate, and the cabinet industry has entered the “micro-profit” era. Many cabinet companies have also entered a period of dullness.

In the face of meager profits, if price war is used to seize the market, it will be a disaster for the industry. Price is only one of the external manifestations of commodity value. Cabinet companies should start from other aspects and promote the steady and sound development of the cabinet industry.

Strengthen cost control and choose humane marketing

First of all, low profit does not mean that you can cut corners. In the low-profit era, it is understandable to try to reduce costs. What cabinet companies do is to control costs rather than reduce quality. Cost control is a recognized corporate tax and taxation point. Every process in the process of costing, such as the design process, procurement process, production process, and management process, needs to strictly control costs and make adjustments and supervisions through precise accounting and rationalization. To strengthen cost control.

Second, we must adopt a proper marketing approach. The correctness here is of course put forward under the premise of "micro-profit". When choosing a marketing approach, companies should choose the “better and cheaper” approach and humane marketing. While increasing awareness, brand loyalty has also been correspondingly improved. Although TV advertisements are dazzling, the high cost is not affordable for every company. In this period when the Internet dominates, propaganda through the Internet has many advantages such as low cost and wide coverage.

It is worth noting that the mundane period of the cabinet market is not the bottleneck period. Cabinet companies must only carefully manage their businesses, optimize cost control, and choose the right marketing method to go further and further, instead of being left behind in the ruts of history.