In recent years, both inside and outside decoration
said small home improvement company in the declining days of every year, quite a number of decorative companies may have to back back to “road rebels” stage, or even close delisting. Decoration Industry Association, Guangzhou, relevant official told reporters, raw material prices, the new “Labor Contract Law” led to many factors such as rising labor costs will lead to major consolidation this year, major downsizing of the industry intensified its efforts for a long time by low-cost competition Small home improvement companies will lose the advantages of the original.
To survive, we must change the current “large” business model, take the professional road, this is the decoration business to meet market where survival means.
New law lead to industry change
New “Labor Contract Law” was promulgated to the size of the home improvement business impact caused by completely different. A large home improvement company, already relatively standardized work system, such as Star Art, Chinese Xun, Samsung, Ming Jiang and other designer brands are all signed with the specification of the contract. And According to Industry sources, mostly small and medium sized home improvement enterprise employment system is not standardized, low-cost labor is the most businesses use the primary means of reducing costs. Now, these companies will face a dilemma. If the establishment of a standardized work system, business costs will be greatly increased, and if illegal labor, a labor department could face penalties, two technicians are also likely to regulate the loss of employment in the decoration business to go. Way out there? Industry experts point out, small home improvement business only exceed and take the road of specialization in order to survive in the market space. For example, some companies are better construction teams, you can take the initiative to abandon the design business specializing in brand design and undertake construction of large-scale decoration business enterprise. This business a single, specific employment positions, to better control labor costs.
Upgrade services and building materials business alliance
New year, many well-known sanitary ware brand has quietly raised the retail price. According to the company’s learned from the city’s major renovation this year, ceramic, wood, metal, chemicals and other decoration materials will continue last year’s price gains, while the decoration business to resolve this problem, increase efficiency is the only way to reduce costs. For example, some brand companies have a selection of decorative high-quality master material brand, and business alliances body, and to ensure that customers buy all of Union, the main material for the market the lowest. Guangzhou Municipal Building Decoration Association, Hsu and iron industry, said that as the birthplace of modern decoration, decoration company in Guangzhou should continue to design, technology, materials and so much painstaking effort, from the system, management innovation, and raise the competitiveness of enterprises. It is learned that the Union of decoration and building materials enterprises have achieved good results, this year there will be more of an enterprise of the attempt.
Competitive price stability decoration
Recently, Beijing more than 10 home improvement companies jointly raised decoration prices, this will appear in Guangzhou? Guangzhou, the major brand decoration company official told reporters: This is unlikely. Because the Guangzhou market is extremely competitive decoration, decoration companies and material suppliers are afraid prices easily. For example, timber and other raw material price increases last year, generally more than 20%, but Guangzhou, most of the furniture, the floor price increases no more than 10%. Industry experts believe that, in 2008, through further industry consolidation, Guangzhou decoration industry scale and degree of specialization will also be greatly improved, the overall price of the basic decoration market will remain stable and tame the situation.