In just a few years, the number of hardened flooring companies in China has increased from more than 100 to tens of thousands; and flooring projects have become increasingly difficult to do. The strong market pressure has made the development of many hardened flooring companies difficult, and the influence of some external factors is undoubtedly worsening for our flooring companies. In the face of such a dilemma, how should we face it, which has to make floor enterprises think deeply. So what kind of dilemma does Chongqing floor construction face?
1. The price of raw materials has increased dramatically
In recent years, China's prices have continued to rise, and the cost of various materials has also continued to rise; according to relevant news reports, the market price of hardened flooring has increased by more than 10%. In the case of rising water prices, flooring companies have to increase prices.
2. Increase in transportation costs
The large increase in the price of fuel oil has caused an increase in freight rates, which has a relatively large impact on the economic benefits of floor enterprises. Since the implementation of the new traffic law on May 1, 2004, some companies have been unable to reduce costs by overloading vehicles and loading dangerous goods (oil-based paint) with ordinary vehicles, and the transportation costs borne by enterprises have become even greater.
3. Labor costs skyrocketed
The surge in labor costs for hardened flooring projects cannot be underestimated. Compared with 2008, labor costs have increased by almost three times, and rising costs have restrained the pace of development of flooring enterprises.
4. Market Chaos
Due to the lack of standards and inconsistencies in the current floor enterprise standards, coupled with the confusion in understanding the floor, the quality of the floor, and the price, regardless of the company or the qualification, as long as it can do it. This not only does not guarantee quality, but also does not mention after-sales service, which seriously disrupts the market and makes competition unorderly. This is also a considerable pressure on the floor enterprises.
5. Lack of national brands
With the deepening of China's opening to the outside world, many well-known brand multinational companies have fully entered the Chinese market. These companies have brought technology and capital, and at the same time, they have put pressure on domestic flooring companies. In China's flooring market, imported and joint venture brands occupy most of the country, while China's flooring paint well-known brand companies.
The flooring enterprises in China are not yet able to integrate the national conditions and the company's own conditions to achieve real localization of flooring products and shape their own brands. The lack of national brands has become a bottleneck in the development of the flooring industry in China.