Lock companies sinking the market in third- and fourth-tier cities

Lock companies must "go up to the countryside"

Recently, many door lock companies have expressed their feelings that the "country" market is good! Entering the third- and fourth-tier cities, and even the rural market, is the consensus of many large-scale enterprises. As the future growth of the lock market is in third- and fourth-tier cities. Therefore, when the lock industry enters the integration period, “going to the countryside”, mergers and acquisitions, and expansion of scale will be the magic weapon for the company to win in the future.

Many people in the lock industry said that at present, the real estate industry and the lock industry are just like bowls and chopsticks. The relationship between the two is directly proportional. When the real estate industry develops rapidly, the spring of the lock industry comes.

Real estate industry promotes lock enterprises "going to the countryside"

It is understood that today's real estate industry is entering a second stage of development - the high-speed development period, that is, the stage of real estate enterprises to vigorously develop the third- and fourth-tier markets. In this stage, the growth rate of the first- and second-tier markets slows down, and the price level Faced with a downward trend; and third- and fourth-tier cities are developing in full swing, and have gradually become the focus of growth in the real estate industry. According to the current development situation, this stage will continue for at least 3-5 years. Affected by local environment, the development progress of the eastern, central and western regions is different. The eastern region may be completed around 2013, and then enter a steady development period. Other regions may continue until 2015. According to relevant sources, in the transition period of each stage, the real estate industry will have the climax of mergers and acquisitions, resulting in larger enterprises.

Industry integration is basically completed, the central region is being integrated, and the western region is slightly slower. At present, the lock market in Kunming is relatively complicated and low in concentration; large enterprises, such as Hongtamu, and small-scale self-service stores, are operating locks. The industry is chaotic, mixed, and low-price competition, resulting in slower market development. difficult.

As the leader of the lock industry in Yunnan, Kunming Lock Enterprise must assume the responsibility of integrating the entire Yunnan lock enterprises, actively promote the “going to the countryside” campaign, set industry standards, avoid low-price competition, and resolutely resist the entry of low-quality products from some small workshops. The market, develop and strengthen itself, and meet the challenges of the next industry integration.

Then, how does Kunming Lock Enterprise “going to the countryside and going to the countryside”, mergers and acquisitions, and development and growth? What issues should I pay attention to in the process of going to the countryside? After the author's investigation and understanding, it is found that “going to the mountains and going to the countryside” mainly has the following strategies and problems.

In the face of “going to the countryside”, how should the industry respond?

1. Solve the funding problem. “Going to the countryside” requires a lot of money, and financing has become the primary problem that most lock companies need to solve. Therefore, it is very important to carry out multi-channel financing, such as issuing corporate bonds, equity financing, microfinance, and seeking government support. In addition, controlling costs, optimizing production processes, reducing inventory, and increasing cooperation with suppliers to increase cash flow are also better methods. In order to save development costs and diversify, many real estate companies have set up their own locks divisions, which will bring greater challenges to the operation of cash flow. As we all know, the current real estate companies have very large debt pressures, and cash flow is often insufficient. This requires real estate companies with lock business to allocate cash flow reasonably in the real estate business and lock business, and cannot ignore this.

2. Actively explore the state, county, township market, especially the state and county markets. Yunnan Province and county towns are vigorously carrying out real estate development, which will bring strong market demand for lock enterprises. Therefore, it is very important to seize the market preferentially, such as: opening lock stores in the local area, active and local dealers and other lock enterprises. Cooperate to promote their products and set product prices according to local economic levels. Strive for reasonable price, excellent quality, and ultimately, enhance their brand awareness, thus occupying a favorable position in the market and laying a solid foundation for future development.

3. Improve the quality and design level of the company's products. Product quality is related to the survival of the company, and only if the product quality is guaranteed to be reliable, will the brand effect be formed. Under the current development situation of the lock industry in Yunnan, lock enterprises have introduced new designs of fashionable, scientific, harmless and environmentally friendly products to the Kunming market, and promoting mature products in other markets will be a good market strategy. The reason is that the new products have not been produced on a large scale, and the products are technologically advanced and relatively expensive. Therefore, it is in line with the relatively high consumption level of Kunming consumers and the high requirements for product quality and design.

4. Improve corporate marketing and management. Locking enterprises “going to the mountains and going to the countryside” will inevitably require enterprises to have more dealers and specialty stores, which puts a severe test on the marketing management level of lock enterprises. Therefore, how to manage a store, control production, procurement, inventory and logistics costs, and maintain a good relationship with dealers are all issues that companies need to consider.

5. Improve the product line, develop high-, medium-, and low-level products to create regional quality brands. To lock up and become bigger and stronger, we must make ourselves a complete supplier of products. For example, through mergers and acquisitions, the product line will be gradually improved. According to the different development levels of the states and counties, high-end products will be sold to large markets such as Kunming and Yuxi. The mid-end products will be sold to the autonomous prefecture market, and the low-end products will be sold to the township market for future occupation. In preparation for the township market, at the same time, the brand strength will continue to be improved, making it the leading brand in the industry.

In the face of "going to the countryside," how should the lock enterprises respond?

1. Steadily advance to avoid blind expansion. When the lock enterprise expands the market, it must have sufficient funds, timely product supply and excellent marketing management team. If these conditions are not mature, blind expansion, it is likely that the enterprise's capital chain will be tight or even broken, which will cause the enterprise to face difficulties; it may also affect the cooperation relationship between the enterprise and the distributor due to the unsatisfactory supply of products; or because of marketing Poor management leads to low-cost competition among dealers, which greatly affects the brand image.

2. Improve the after-sales service system to avoid the situation where services are not in place. For the lock enterprises that are expanding rapidly, it is very important to establish and improve an effective after-sales service system. The product service is not thoughtful and will greatly affect the brand image of the company. In the way of after-sales service, it can be dominated by the lock enterprise, but also the dealer can participate. Some lock managers said that the lock enterprises in the established after-sales service system, allowing dealers to undertake after-sales service in their own regions, and the establishment and improvement of the supervision system, can greatly reduce their after-sales costs in the regional market.

3. Strictly manage the dealer's price system to avoid low-cost competition. Most lock business operators believe that the price of some dealers is more chaotic, which will greatly affect the profit margin of lock companies and other dealers; and it takes a lot of effort to manage and maintain a stable price system. Management is very unfavorable. Therefore, the development of a unified set of price standards and systems, and the establishment of an effective monitoring mechanism, is the common goal of most lock companies.

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