Strong development momentum in the doors and windows industry

Whether it is a traditional industry or an emerging market, or a door and window market, corporate leaders think about a topic—how companies can join the industry's successful minority.

In order to achieve this goal, the bosses of the window and door companies are constantly staring at the market, focusing on the rapidly changing market conditions that are closely related to the company: which company has released a new brand, which manufacturer has introduced a new product model, or the market has emerged new The cheap and good panel materials, as long as they receive information that can affect the weight of the competition, most of the bosses will immediately call the marketing manager, Starry Night to step up research measures.

Everyone is clamoring that business is getting harder and harder. Today, business owners or professional managers can say that the strings are tight all the year round, and working overtime is a common practice. In the window and door industry, there are bosses who can sit and chat in the office all day long, but such bosses are extremely rare in the industry, and they will not be idle because they know that tomorrow they will become tomorrow if they do not work hard. One of the majority.

The market is always manipulated by an invisible hand, and 20% of the market leaders will always master the rules of the game. This is the “28 theory” that was once regarded as a golden rule. It is called the world of release. Jewish "28 rule." This law has been miraculously verified in many fields. 20% of people hold 80% of the world's wealth. 20% of banks have 80% of the world's funds. 20% of the brands have 80% of the market's market share. The numbers are boring. , but this series of "28 theory" figures illustrate an unavoidable proposition. Will the market always be a game for a few people? Will any market go to an oligarchic era? Will the pinnacle of victory only be able to insert only a handful of flags, and chasers in most markets can only become frustrated women?

“We are now encountering a good era of rare occurrences in a hundred years.” This is the rhetoric of current managers and investors who have flooded into the stock market. Then, in the window and door market where there is a bit of a "depression", bosses and marketing managers always hold such ambiguity and hope for the market, but the cruel reality is always "infatuation is always blown away by rain." Every day when the sun rises, it still has to face the annoying reality of product backlog, poor sales, and blocked channels. For the window and door industry, in fact, the market is full of 90% of small and medium-sized brands. So, where is this 90% of small and medium-sized brands coming out? Is it like most other traditional markets that most brands will be wiped out in the market?

Will any market go to an oligarchic era? The pinnacle of victory will always be only a handful of flags, and chasers in most markets can only become frustrated women?

The world-famous writer Spencer Johnson pointed out early on that the only change in the world is change itself. The new "long tail theory" that has emerged in the past two years further demonstrates the correctness of Spencer Johnson, a postmodernist character.

Longtail was first proposed in an article in 2005 by Chris Anderson, editor-in-chief of Wired magazine. This theory, which runs counter to the theory of the classic academic school, the “28 rule,” has become a big controversy when it comes to earth. Then, Anderson specialized in the publication of the “28 Theory” name, and comprehensively and systematically organized the theory of market science in the new economic era, making the “Long Tail Theory”, like the famous Blue Ocean Strategy, become the world’s economics. A dazzling rainbow in the middle.

To systematically explain the "long tail theory," we must first understand what is the "28 law." "Long tail theory" is actually an extension and development of the "28 rule" in the new economic era. “The Rule of 28,” also known as the Bardeño Principle, was invented by Italian economist Paredo in the 1820s. He believes that in any group of things, the most important is only a small fraction, about 20%, while the other 80%, although a majority, is secondary, so the Baledo law is also known as "2. Eight rules." The "28 rule" is very simple but it is a universal empirical theory. In terms of markets, there are market leaders, followers of the market, and market replenishers, respectively, and it is generally believed that 80% of the market share is divided by 20% of the leading brands, while the remaining 80% of the brands only occupy 20%. Market share. In many product markets or industries, this law has been verified, such as computer products, color TVs, refrigerators, instant noodles, drinks, mobile phones, and so on.

As the birthplace of modern marketing, the marketing theory always pushes forward. American Wired magazine Chris Anderson analyzed the market phenomenon in the new economic era and found that in the new economic era, the “28 rule” cannot be applied to the product area or the market. As a feature of the new economic era, the era of goods fertility, at the same time, due to the arrival of the IT information era, the cost of information exchange is getting lower and lower. This makes the curve following the leading brands to drag on longer and longer, this curve is in the market. The coordinates are like a long tail, so Anderson symbiotically copolymerized a large number of brands in this new economic era into the "long tail theory."

The "Long Tail Theory" is a good illustration of the ubiquitous market phenomenon in many fields in the post-industrial era. When the "Long Tail Theory" came out, it sparked a wave of waves that caused a strong reaction from the world marketing academic community and became the most influential school of marketing theory after entering the new century.

There is no leading brand: the pattern of stars and windows in the window and door industry highlights whether the "28 rule" continues to be effective or whether the "long tail theory" is more reasonable. To answer this question, we need to pay attention to whether the leading brand has already been born.

The important consideration in judging the leading brand is the general market concentration. The relative market share index (RSOM index) proposed by the Boston Consulting Group in the US can be used to analyze the market position of each brand. The RSOM index exceeds 1.5, which is a brand whose market share equals or exceeds 26%. Now, looking at the entire window and door market, we find an interesting phenomenon. That is, there is almost no brand with a market share of 26%. This contrasts sharply with other industry sectors.

It should be emphasized here that the above analysis is only in terms of market share. The concentration of the door and window market is not enough to determine the leading brand. This alone cannot explain the problem. Here, the author makes further analysis from the two latitudes of the consumer buying brand prompting degree and the terminal channel monopoly degree.

It is expected that in a certain period of time, the domestic market for doors and windows cannot be a monopoly of several brands alone, and there will be a pattern of blooming flowers and stars. This will also give confidence to domestic small and medium-sized windows and doors enterprises.

In fact, although there is no leading brand in the domestic door and window market, it is certain that there are well-known brands. For example, in the field of anti-theft security doors, Panpan, Maxim, Buyang, Wang Li, etc. through long-term brand building, mass media Successful brand penetration has already achieved basic brand awareness, and is also significantly better than other brands in terms of market share. If compared with the absolute market share, this type of brand also has the characteristics of a leading brand, but due to the special importance of the door and window market is the concentration of the market and the monopoly of the channel is not enough, so the power of leading brands is not sufficient. Due to the diversity and individualized requirements of door and window products, as well as the convenience of channels, it can be said with certainty that for a long period of time, the market for doors and windows will not form a relatively high level of market concentration and channel monopoly. In any central city or second- and third-tier markets, the diversity of doors and windows presented presents a cohesive coexistence of numerous brands, which confirms the correctness of the “long tail theory” in the doors and windows industry.

The theory is gray or boring, but the "long tail theory" can explain the authenticity and reality of the competitive landscape in some markets, allowing us to prospectively predict the future of the window and door industry, at least for quite some time. The domestic market for doors and windows cannot be a monopoly of several brands, and there will be a pattern of blooming flowers and stars. This will also give confidence to domestic small and medium-sized enterprises. As a result, many small and medium-sized brands should also have a long-term strategic vision in the market, have medium and long-term brand strategy plans, avoid all kinds of short-term behavior, do a good job of building brand equity, and thus make their brand truly a century-old brand, a hundred years Old shop, made famous brand in the industry.