Home Textile Industry: The Winter Of The Property Market And The Spring Of Enterprises

At the end of 2011, the news that the government would continue to regulate the real estate market in the new year came. Later, it was predicted that 2012 will become the real winter of the real estate market and even the home sector.

As part of household products,

Recently, the real estate giant Vanke Group said that it will follow the principle of "cash is king, actively selling the house, and cautiously buying land", showing the Vanke Group's attitude towards the future development of the property market.

The reduction of consumption demand in the real estate market will indeed affect the home market because the move is originally a purchase.

Demand determines cold and warm

It is precisely because of this, many domestic textile industry has a negative attitude towards the performance of the consumer market in 2012.

But not buying a house does not mean that people do not decorate, nor decoration does not mean that consumers will lose their quality of life.

Therefore, we can not unilaterally believe that the demand for home decoration market is lacking, but the demand is adjusted.

The two decoration and soft decoration will improve the family environment and atmosphere, and will become home textiles in 2012.

Household products, including furniture and home textiles, have no impact on the sales of home textile products.

With the concept of "light decoration and heavy decoration" becoming more and more popular, the soft fitting industry is likely to get considerable development in 2012, and the fabric and bed products industry will probably usher in the development of spring.

To this end, the most important thing for home textile enterprises is to guide the consumer to make the consumer realize that even if there is no bigger and better house, it can make life better. This requires family ornaments, especially home textile products, to play the role of soft clothing.

In the domestic market, the first problem that enterprises need to solve is to stimulate consumers' pursuit of quality of life and tap the demand for creating a better life.

At present, most consumers can not link the quality of life with home textiles, but are serious and persistent in pursuit of designer bags and designer clothes.

A home textile brand official said: "many consumers are willing to spend tens of thousands of dollars to buy luxury clothing, but not willing to spend several thousand yuan to replace bedding.

It can only be said that although China's luxury market is huge, Chinese consumers are still "new nobles", who are willing to spend money on external markets and have no time to take care of their deep taste in life.

If consumer demand for home products can be as enthusiastic as luxury goods, then home textile enterprises will usher in a new spring.

Brand positioning

But it is inevitable that the downturn in the real estate market will lead to more intense competition in the home textile market, and the rational consumption of people will make the survival of the fittest more obvious.

Nowadays, there are many home textile enterprises, but the brand positioning is not obvious.

Most of the enterprises take the mass line, the flagship mid-range products, but at the same time cover the high-end series with higher price and some low-priced products which are flexibly controlled by some prices.

When the market space is large, the sales situation is optimistic or the brand is strong, product coverage is not a problem; however, when the market is unstable, it will distract the brand's attention and the horizontal development is not as good as the deep development.

Because high-end products mean more fashionable designs, better fabric materials and higher costs, brands need to develop a design line or even a product line to specialise in production.

It is a burden to enterprises with insufficient strength. If the high-end product line fails to meet the high-end requirements, the brand will soon be abandoned by consumers and squeezed out of the home textile market.

Different levels of product positioning, it is difficult to lock in fixed consumer groups.

Sometimes, in order to survive better, enterprises should make a choice.

Just like the 2011 property market restriction policy, it is stipulated that consumers who hold a house can not enjoy the loan discount when they buy it again.

Aware of the loss of many of the backbone of the purchase, some of the real estate developers turned to villas and other high-end property market, abandoned the popular property, specializing in the need for loans of consumer groups.

Facts have proved that restricted purchase policy affects the support market of the rigid demand market to the whole property market is insufficient. On the contrary, the high-end projects are sought after by the market because of its better value preservation and value-added.

In view of the current home textile market, there is no mature high-end brand in China. Most of the well-known brands still sell high and medium grade products, that is, the products that the masses of consumers think are expensive, but the high-end consumers do not recognize them.

The gap in the high-end market is obvious, giving the international brand an opportunity to seize the Chinese market; however, the price of the low-end brand is not cheap enough to match the "affordable housing".

The high added value of profit making

How to deal with the market downturn? Is it possible to save the mess only by reducing prices and discounts? The property developers have made a good demonstration for home textile enterprises.

Since last year, many real estate projects have taken advantage of the way to profit and actively leveraged the real estate economy.

One way of giving profits is direct price reduction and discount, and the other way is to improve the standard of refined decoration, to produce better products and better property services, and more mature business matching, that is, to enhance the added value of products.

Obviously, the second method reflects the developer's awareness of the real estate brand building, which is better than the first one.

Last year, the fluctuation of raw material prices of textile products was obvious, which caused many enterprises to worry. However, because of the sluggish market, the brand had to offer discount sales.

In fact, enterprises can provide consumers with better quality, design updates and higher value-added products to maintain price stability, which is more cost-effective for enterprises, not only to ensure profits, but also to get a better reputation among consumers.

In 2011, Simmons brand upgraded on the basis of the original products and welcomed unlimited market opportunities.

Upgraded products improve sleep quality more powerful.

The brand said that economic growth will make people have higher requirements for the quality of life, and the frequency of mattress replacement will be greatly improved.

Therefore, improving sleep quality and improving product quality is still the goal of this year.

There are no bad markets, only bad products.

In 2012, the market put forward more stringent requirements for enterprises and brands. The competition of home textile products will become increasingly fierce. On the other hand, it will also become a good opportunity for brand repositioning and optimizing resource integration.