An Analysis of the Causes of Unbalanced Production and Sales of Doors and Windows Enterprise Terminal Market

At present, some doors and windows companies are beginning to work hard to adjust existing channels: large companies add new production lines and expand production capacity on the basis of existing product lines; small enterprises increase new projects, test water conversion, cross-line marketing, and other companies join in real estate development. Business, directly supporting the project. Although some companies have successfully transformed themselves based on the current situation, there are also many windows and doors companies faced with the problems of dismantling production and sales. The following nine reasons are causing you to analyze the causes of imbalances in the production and sales of door and window enterprises.

The doors and windows companies that are excluded from the development of local agents or specialty stores by the local brands are not ideal in the areas outside the main markets, and they are classified as “field brands,” and are naturally rejected by local factories, husband-and-wife shops, and building materials. * There are relative advantages such as short delivery time, cheap price and wide connections. If you want to share with them in the market competition, foreign brands must have better products, quality, prices, services, etc. Door dealers have not done well in these aspects, and it is estimated that about 30% of dealers are on the edge of being eliminated.

Cost pressures have increased as prices have risen, inflation has increased, and the cost of raw and auxiliary materials has risen. This has become the predicament faced by the home building materials industry. Companies in many industries are deeply stressed.

One boss revealed that sales volume in 2010 increased by 20%, but profits did not increase but decreased by 30%. This "upside down" phenomenon has caused headaches for practitioners. Another boss said that his factory rent is 700,000 yuan a year, renting a total of 3.5 million yuan in five years, so expensive rent, if the sales volume does not rise sharply for three consecutive months, companies have the pressure to survive, plus business , taxes, firefighting and other expenses, production costs only increase, but painstakingly managed to make no money.

Blind expansion of manufacturers, distributors, stores and other major elements constitute the market structure of the home building materials industry. In order to digest production capacity, many companies continue to develop distributors and agents, leading to an increase in the number of home building materials stores. From the two elements of “inventory” and “incremental”, although the monthly stores, independent stores, and building materials street in most regions of the country all have their dealers removed from the market and changed their businesses, the new amount is still larger than the “exit amount”. ".

Many companies built new plants and expanded old ones. Due to their large goals, concentrated investment, and flexible investment policies, the doors and windows industry has emerged one year of development of 200 dealers. For example, a factory that the author visited recently was transformed from other industries. In only one year or so, the development speed was rapid, and the antenna was extended to the whole country, but the actual sales volume did not increase.

The state has stepped up efforts to regulate and control the property market, making the market wait and see atmosphere is strong; and the rising production costs, many companies have been blocked, hope to expand production capacity, to reduce costs with large-scale production, resulting in a serious imbalance between production and sales, the terminal market is overcrowded.