Analysis and Development of Flooring Industry
China’s economy is in a period of rapid change. New models and new thinking, such as “Made in China 2025”, “Better Life”, “New Retail”, are profoundly affecting every industry, leading to changes in the relationships between upstream and downstream, competitors and partners, online and offline, products and services, users and enterprises. A new era is coming. Then, as the “foundation” of the home industry, which trends are becoming reality? In addition to the development of the enterprise itself, the living family is enthusiastic about public welfare, and bravely assumes social responsibility. Establishing green industry chain, starting from various links, creating green standards, improving green index and creating a green, low-carbon and beautiful life
Since the 21st century, China’s wood floor production and sales have been rising. At present, more than 1200 enterprises are engaged in the production of laminated flooring and solid wood laminated flooring in China. In 2017, there are about 3000 enterprises engaged in wood floor production and related enterprises in China, with 1 million employees and a total output value of about 100 billion yuan. Incomplete statistics show that the total sales of wood and bamboo flooring in China’s flooring enterprises of a certain scale in 2017 are about 415.2 million m2, an increase of about 4.64% over the same period last year. In 2010-2015, the output of the floor industry basically maintained more than 380 million square meters. In 2016-2017, the output increased slightly. Preliminary statistics show that the current output is about 430 million square meters. At present, the production and sales of wood flooring products in the whole industry rank first in the world. It is expected that by 2020, the average penetration rate of wood flooring in big cities will reach about 30% – 35%, and that of wood flooring in small and medium-sized cities will exceed 15%. In the future, China’s wood flooring industry will show an overall growth trend. It is estimated that by 2021, China’s wood flooring industry sales revenue will be close to 130 billion yuan, and the market development space of wood flooring products is very broad.
Green flooring is the trend of environmental protection to become inevitable
With the improvement of living standards and the enhancement of environmental awareness, the pursuit of a green lifestyle is becoming a worldwide trend. Over the years, the extensive development mode of China’s flooring industry has made the environmental carrying capacity reach or close to the upper limit. It is necessary for domestic flooring enterprises to draw lessons from international scientific and environmental protection concepts. “Green” is a bright color that gives the flooring industry high added value and new vitality. If flooring enterprises want to develop, environmental protection transformation is inevitable. Successful transformation of Shide flooring brand and Bondi flooring brand deserves our attention.
Shiyou flooring brand launched the E0 environmental protection standard, declaring that all solid wood composite flooring and laminated flooring have been upgraded to E0 standard. Environmental protection has always been the main concern of the flooring industry. At present, the requirements of environmental protection are not only for consumers, but also for enterprises’self-survival. National environmental protection policy has fully illustrated this point. Attention has been paid to the implementation of the Environmental Protection Tax Law and the start of environmental protection tax collection. Nearly 30 provinces, municipalities and autonomous regions have announced the specific use tax of taxable air pollutants and water pollutants. No matter what era, healthy living environment has always been the common pursuit of people, for this reason, environmental protection is always the hot spot of the floor industry.
Strategic transformation and upgrading
Industry resources accelerated tilt, boosting solid wood flooring upgrade to solid wood geothermal flooring. Since its inception, solid wood geothermal flooring has great product strength and maturity. Many positive factors, such as the popularization and growth of floor heating, the concept of healthy and environmental protection consumption, are also promoting the concentration of industry resources to geothermal categories. The transformation of the floor industry has become inevitable. Nowadays, geothermal heating has gradually become the mainstream of the market, and many flooring enterprises are closely following the market, starting to develop solid wood geothermal flooring series.
When many flooring enterprises choose the strategy of large residence or diversification and multi-category, Jiusheng flooring brand adopts the strategy of brand focusing, focusing on the field of solid wood flooring with advantages, and focusing on the development of warm solid wood flooring. Zhang Kai, chairman of Jiusheng Floor, said, “Focusing on floor heating is not our bet, but on the basis of sufficient market research in the early stage, we have full confidence in the development of this field.”
On the one hand, the sales growth of solid wood flooring benefits from consumption upgrading, some high-end demand began to release, on the other hand, with the continuous popularity of floor heating products by consumers, the advantages of solid wood flooring without formaldehyde make it the first choice of consumers. It is expected that in the future, with the continuous improvement of the living standards of residents and the increasing demand of consumers for floor health and beauty, solid wood flooring and solid wood composite flooring will still be the two fastest growing sub-categories in the floor industry. As an old group of solid wood geothermal flooring manufacturers, Euro-style flooring has been investing heavily in research and development for many years. Many other flooring brands have also begun to accelerate the transformation and put into the research of solid wood geothermal flooring.
In June 2018, the Shimu Plastic Environmental Protection Material and Products Branch of the Forest Industry Association was established, with 130 member units, including 6 rotating directors, including Caina Fono Wood Industry (China) Co., Ltd., Shuxiangmendi (Shanghai) Aesthetic Home Co., Ltd. and Zhongshan Creative Players Home Co., Ltd. Stone-wood-plastic floor is considered to be cleaner, safer, harder, beautiful, waterproof and scratched floor, and easy to construct. It has developed rapidly in recent years. It is mainly used for the floor of kitchen, bathroom, school, office building, shopping mall and other public places, as well as wall decoration materials.
Another incident is that in February 2018, the General Administration of Quality Supervision and Inspection and the National Standard Committee approved the formal release of the Technical Requirements for Solid Wood Flooring for Ground Heating (referred to as the National Standard for Solid Wood Flooring for Ground Heating). At present, geothermal flooring is regarded as a strategic product, or at least 30 companies have already set foot in the products of solid wood flooring, including Nature, Jiusheng, Anxin, Shengxiang and Sheng. Living family, Pan-American, Hongnai, Shiyou, Forest Star, etc. Among them, Jiusheng regards it as its main business, while some comprehensive big brands, such as Nature, Sacred Elephant and so on, spare no effort to enhance the category influence.
Brand extension or brand focus strategy, which is the future of the industry? This is a subject that needs long-term research and verification, but in the face of the current uncertain political and economic environment, floor people should strive to see clearly what the biggest problems the industry will encounter in the next 10, 20 and 30 years. If we say today, we predict that there will be such and such problems in the future. Appearance, then we begin to act today, formulate development strategies suitable for ourselves, and then firmly aim in this direction, when problems arise, we will be able to deal with them.
Traditionally, domestic flooring is considered as a mature and stable representative, and the single color restricts the individualized demand. The break of this concept is probably from the import of flooring in 2015 with a variety of colors, style and trend of young style, slowly changed, the domestic flooring brand has also had a great impact. From this, we can also see that the elements that consumers are keen on are inserted into the design and operation of floor products and floor activity planning, which has a great role in promoting the whole floor brand. In product design, the fashion and aesthetics of the products are geared to the future post-80s and post-90s consumer groups. In order to make the design younger, flooring enterprises should pay attention to the construction of R&D team of flooring product design, in order to deal with the new market specially.