Ningbo Safewell Plumbing Co., Ltd. , https://www.safewellbrass.com
The cabinet industry is going through a period of transformation. With increasing pressure from multiple sources, the sector is facing more challenges this year, and a turning point may be on the horizon. In such an environment, how can cabinet companies succeed?
The transformation of the cabinet industry won’t happen overnight. At this critical moment, companies must find a path that suits their own strengths, think creatively, explore new possibilities, and adapt to the changing market. By doing so, they can achieve stability and ultimately win in a competitive landscape.
Controlling Terminal Channels
In recent years, the home industry has been under constant pressure. Yet, some stores have managed to grow despite these challenges, expanding their operations by opening new locations. Many cabinet brands have also increased their store numbers significantly. However, rising costs and homogenized operations have placed immense pressure on many cabinet companies.
How Cabinet Companies Can Succeed
In this context, cabinet manufacturers need to take proactive steps to better manage their terminal channels. For instance, they can collaborate with store alliances to negotiate lower rents, improve store branding, and increase marketing efforts to attract more customers.
As the cabinet industry reaches a crucial turning point, new sales channels and terminal models are emerging. Many cabinet merchants are now opening independent image stores near large home improvement retailers or jointly setting up brand stores in strategic locations along main streets.
This approach, which avoids relying on “abducted†channels within supermarkets, has already proven successful in the home appliance industry. For example, Gree Electric expanded its presence outside of major hypermarkets like Gome and Suning by promoting independent stores, thereby gaining greater control over the terminal market and elevating its marketing strategy to a new level.
Currently, well-known cabinet brands like European School, Department Stores, and Han Li have already established themselves in first-tier cities. These markets are stable but highly competitive. As we know, the main city cabinets market has become saturated. After the real estate market was regulated, the development of 3rd and 4th-tier cities has seen rapid growth. Many cabinet companies are now focusing on the potential "blue ocean" in county-level markets.
While national brands have taken the lead, none have yet achieved an absolute dominant position. The market potential in district and county areas is vast, and local cabinet companies often have a competitive edge there. Why can't we see a "surrounding cities with the countryside" model? Perhaps, in the near future, this could bring a dark horse to the Chinese cabinet market.
Perfecting the Service System
At this inflection point, cabinet companies must continue to refine their service systems. Survival alone isn’t enough—sustained profitability depends on strong sales and exceptional customer service. No matter where you are, there are plenty of cabinet makers, but only those who invest in service quality will stand out.
Cabinets are long-term household items used frequently. Therefore, pre-sales design and after-sales installation services must be reliable and timely.
Today, the overall concept of cabinets is very popular. However, most consumers are still in the phase of purchasing their first full set of cabinets. They lack deep knowledge about the entire system and need a lot of guidance. At this stage, if a local company can quickly introduce a "Cabinet Life Service," it can seize an opportunity, build a positive image, and gain user trust.