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In today's real estate market, first-tier cities in China are experiencing a saturated home store environment, with declining sales and increasing challenges for dealers. Many traditional home stores have struggled to maintain their relevance, with some even exiting the market entirely. For example, in 2011 alone, Hangzhou saw the closure of four major home stores, including a well-known domestic chain that shut down just eight months after opening.
Over the past few years, our products gained popularity due to their high quality and strong performance. However, the flooring industry has seen significant changes in recent years. Market demand has declined overall, and more brand competitors have entered the market, leading to reduced profit margins and intensified competition. To capture a larger share of the market, flooring companies have adopted various marketing strategies.
Since the implementation of real estate regulation policies, the turnover of the flooring market has continued to shrink, pushing the entire industry into a "low tide" phase. As a result, dealer pressure has increased, prompting both companies and dealers to seek new paths. This led to the rise of the whole-wood home improvement concept, which is now gaining traction as a key trend in the industry.
The whole-wood home improvement sector has gradually become a mainstream direction in the building materials industry, shifting towards custom wood solutions. For instance, local Hangzhou brands like Dharan Zhuang Flooring have introduced top international brands such as Stanley, Mannington, and Wood-Be, integrating wood flooring, doors, wall panels, and furniture into one comprehensive design solution.
On June 8, 2012, the first new model experience store of Huierbang Home opened in the New Age Home Living Plaza in Gudun Road, Hangzhou. Lin Qiang, chairman of Whirlpool Home Furnishings, stated that consumers in Hangzhou require a wide range of wooden products during renovation, from cabinets and wardrobes to floors and doors. Whirlpool offers full-service solutions, including customized production and installation.
From "Helberg Cabinets" to "Hirbon Home Furnishings," and from "Gu Family Crafts" to "Gu Family Home," many companies have rebranded and expanded their product lines. This shift reflects a broader trend in the Hangzhou home building materials industry, where companies are moving from single-product models to comprehensive home improvement solutions.
Despite the current economic constraints, the whole-wood home improvement sector is dominating the high-end market. With the home building materials industry still struggling, this new development model is spreading rapidly. Both top-tier and mid-tier brands are eager to adopt the whole-wood approach to gain more market share.
However, establishing a complete whole-wood home improvement model is not an easy task. It requires a fully integrated production system and a focus on high-end consumers who can afford customized solutions. As a result, these products may not be widely sold, but companies must build strong brand awareness through quality, technology, and service.
Customization is a key advantage of the whole-wood home improvement model, but it also brings challenges. Disputes often arise due to the strict requirements for size, color, and style, along with longer production times and limited return options. Therefore, clear communication between dealers, consumers, and manufacturers is essential to avoid delays and ensure satisfaction.
After-sales service is another critical aspect. Companies should focus on supporting their dealers by providing training and assistance in marketing and customer relations. By setting up dedicated service teams with professionals in marketing, design, and after-sales support, enterprises can better assist new stores in adapting to market changes.
As the saying goes, "It’s better to teach someone to fish than to give them a fish." Whole-wood home improvement companies should prioritize service, offering comprehensive support to help dealers succeed. During economic downturns, transforming from traditional manufacturers to service-oriented businesses is becoming a major industry trend.
In a competitive market, flooring companies must rethink their strategies, enhance their marketing efforts, and provide excellent services to meet evolving consumer demands. The future of the industry lies in innovation, customization, and strong customer relationships.
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