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On October 28, the official WeChat public account of Eagle Ceramics pushed an article, releasing the blockbuster new product of "Eagle Wall and Floor Expert" - HPL stone crystal floor. However, HPL quartz flooring is neither slate nor ceramic tile. As soon as the news came out, it triggered widespread heated discussion in the building ceramics industry. Is Eagle Ceramics going to start selling flooring?
The matter also starts with the listed company Tianan New Materials (603725.SH) participating in the Yingpai Group's bundled transfer of 66% of the equity transactions of four wholly-owned subsidiaries, and jointly promoting the mixed ownership reform of the Yingpai Group. Based on the property rights transaction between Tianan New Materials and Yingpai Group, the two parties jointly funded the establishment of Guangdong Yingpai Industrial Co., Ltd. (referred to as "Yingpai Industrial") on August 16 this year. Since then, the 47-year-old brand Eagle Ceramics has launched a new upgrade in products, positioning and even terminal stores.
Tianan New Materials is a company specializing in the production of environmentally friendly high-end decorative materials and automotive interior materials. It has three manufacturing bases and two R&D centers in Guangdong and Anhui. It currently cooperates with more than 500 customized home and furniture companies. It has absolute advantages in environmentally friendly materials. Benefiting from the parent company Tianan New Materials' years of technological accumulation and product accumulation in new materials, after the restructuring, New Eagle Brand has been upgraded and positioned as the "Eagle Brand Wall and Floor Expert". Based on the ceramic category, it has fully entered the pan-home furnishing market. Through the wall and floor experts, it has gradually Moving towards the direction of Well Life and Habitat, the product matrix covers ceramic tiles, wall panels and floors.
This means that in the future, the main products of Eagle Brand terminal stores will not only include ceramics, but also wall panels and floors. Driven by new positioning, new products and new services, Eagle Brand has created a new terminal store - wall and floor expert hall. It is reported that more than 100 original Eagle brand dealers have submitted reports to upgrade their ceramic exhibition halls into "wall and floor expert halls", and some dealers quickly completed the first retail sale of wall and floor products in the country.
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Shan Ren, an online marketing strategy mentor and chairman of Shanren Information Group, gave a speech at an event held by China Ceramics Network, saying that there are two lines of brand development. The first line is to increase users, expand different regions, and add different products. The number of users; the second line is to increase the unit price per customer, knowing that users haveWhat kind of peripheral demand will generate a large amount of business long tail and increase the average revenue contribution per customer. For dealers, Eagle Brand has launched a new strategy as a wall and floor expert, launching a series of new products such as wall panels and floors, which complement and attract each other with ceramic products. It not only increases the demand for wall panels and floors, but also can respond accordingly. Increased the unit price for traditional ceramic tile customers. It can be said that the product system of ceramics + new materials has built differentiated competitiveness for Eagle dealers, created more business opportunities, acquired more new customers and increased unit value.
Currently, as the proportion of finely decorated houses continues to increase and the self-contained model becomes increasingly popular, the retail market of traditional ceramic tile dealers is gradually being diverted, and competition in the terminal market is becoming increasingly fierce. Ceramic tile dealers urgently need new sales models to enhance their competitiveness. , seize market share. Similar to Eagle Brand's approach, in order to expand sales channels and increase customer order value, many ceramic tile dealers in the current terminal market have also chosen to add new categories other than ceramic tiles.
In an interview with the "Taoxing China" national ceramic tile and sanitary ware market survey, Qin Yongxue, a dealer in Bao'an District of Nengqiang Ceramics, said frankly that the ceramic tile market has been greatly affected by the fine decoration policy, and the number of retail customers is getting smaller and smaller. In order to break through the dilemma of declining market orders, he chose to expand categories and added two categories: stone and Nengqiang BMI slate, in order to increase customer order value. At present, most consumers in Shenzhen use rock slabs as background walls. He believes that slate and stone have their own advantages. The texture of stone is more realistic and natural, while the after-sales cost of slate is lower than that of stone. The addition of the two categories also expands the store's sales channels.
Coincidentally, a ceramic tile dealer in Fujian represented a bathroom cabinet brand this year. The customers of the two products overlapped. The store promoted ceramic tiles and bathroom cabinet products at the same time. In less than 3 months, the overall performance of its store increased. Significant improvement.
03
Previously, the way for traditional ceramic tile stores to improve their market competitiveness was to act as agents for ceramic tile brands with different styles and positionings, and to increase unit volume and unit value by enriching ceramic tile products. However, the amount of ceramic tiles used by a family is fixed, which means that there is an upper limit for the single value of a customer. At the same time, there are so many ceramic tile stores with rich products in the market, and the effect of improving competitiveness is very weak. In addition, ceramic tile stores can also help each other to complete orders through cross-industry alliances. However, with fewer and fewer door-to-door customers and retail channels gradually shrinking, this method has also had little effect.
Compared with multi-brand agents and cross-industry alliances, through integration or direct operation of other categories of home building materialsThe effect of increasing customer order volume and unit value is more obvious. Categories are the needs of customers. Integrating multi-category operations is equivalent to meeting most of the needs of customers, so that stores can significantly increase new traffic and increase unit prices.
In fact, in recent years, as the trend of decoration has become increasingly strong, many pan-home furnishing companies have already implemented multi-category layouts. The most typical example in the building ceramics industry is Dongpeng, which integrates ceramic tiles, bathroom ware, wooden floors, coatings, Home decoration and many other categories. Not only enterprises, driven by increasingly fierce market competition, the number of large home furnishing dealers integrating multiple categories of terminals is also growing rapidly.
Some industry insiders have analyzed that some of the more successful single-category dealers are currently implementing two transformations: one is transforming into a one-stop business that integrates multiple categories; the other is transforming into multi-category operations, often acting as agents for multiple categories. Categories, involving in multiple categories, further achieving large scale and competitive advantage. Typical practices include: operating ceramics and customized home furnishings at the same time; or operating multiple categories such as bathrooms, floors, and cabinets at the same time; or operating categories such as wooden doors, ceramics, and customization at the same time.
In the current terminal market, some home building materials dealers with a strong sense of enterprising and the courage to invest and expand their operations have successively opened large home furnishing stores to create multi-category integration solutions. Multi-category integration in the pan-home furnishing industry is giving birth to new large merchants. group.
It is true that this kind of multi-category integrated business can indeed help dealers increase the unit price per customer and serve customers who are looking for peace of mind, trouble and effort, and want one-stop shopping. However, this model greatly tests the supply chain, delivery capabilities, and financial capabilities of manufacturers and dealers. Intersections are like mountains. For dealers who originally operated in a single category, the transformation to multi-category integration is equivalent to cross-border. In addition to the dealers themselves, they need to learn professional knowledge across industries and hone their business development capabilities. In order to support the expansion of business and scale, It is also necessary to increase capital investment and form a stable core team, etc., and we should do what we can.
(Author: Sitao)
