Should the cabinet enterprise “horizontal expansion” or “longitudinal deep cultivation”?

After the impact of e-commerce and the concept of big home, the cabinet market presents a complex situation of “I have you, you have me”. Many home furnishing brands have entered the cabinet industry, and the cabinet industry itself has begun to enter other furniture fields.

"Diversification" into a trend of horizontal expansion needs to be cautious

Looking at the Chinese furniture industry, diversified development has become a trend. Furniture companies such as large cabinets have been diversified in horizontal expansion. For cabinet companies, diversification is an important way to grab consumers and markets, and to seek breakthroughs in fierce competition. However, diversification is not a panacea, and there are many cabinet furniture companies that have been blindly expanded and destroyed.

Then, what kind of conditions can the cabinet companies achieve in the “pan”? The insiders have revealed that there are two kinds of power to enter the big furniture. First, consumers have decorative phobias, furniture integration services are the market trend; second, cabinet companies have a leading edge in the field, and can naturally expand to other custom areas. It can be seen from this that it is an important strategy to expand relevant fields one by one based on the advantages of a certain field. Most companies with a diversified layout follow this principle. Expanding from related product categories, whether from the technical foundation, resource integration or consumer perception, has inherent advantages.

"Specialization" is less and less vertical deep ploughing also has spring

Compared with the enthusiasm of “diversification”, there are fewer and fewer companies that insist on deepening the professional operation of single category. Does it mean that specialization lacks a broad space for development? The industry believes that specialization is a big market. “To be good, to be good, to be fine, to be fine, is the strongest company.”

From a global and historical perspective, internationally renowned brands and century-old stores have indeed grown through specialization. They have achieved the ultimate in the field of specificity and become the well-deserved leader in their category. For consumers, they tend to think that professional branded products and services are more professional and reliable. At present, most well-known furniture companies that are still deeply cultivated in China have become the leaders in the field.

It is reported that the choice of specialization roads is closely related to corporate culture. According to industry insiders, companies need to be focused, focused, and take a professional development path. However, he also pointed out that companies need to choose a diversified or specialized road according to their own development characteristics, and the future will be adjusted according to changes in the environment.

Cabinet companies diversified and specialized choices or should be on the way

Judging from the current situation, the Chinese furniture industry is quite "diversified" overwhelming the "professionalization" trend. In the future, will more and more enterprises abandon the deepening of specialization and choose diversified expansion?

The industry believes that from the perspective of furniture, it should be both professional and diversified, with a focus on professionalism. He pointed out that diversified layout, especially the "big furniture" strategy, has high requirements for talents, resources, capital, research and design, etc., and not every cabinet company is suitable. In the future, large furniture fields can really produce some powerful brands, but most cabinet companies also need to return to specialization.

Experts look at the diversification trend and believe that cabinet companies should diversify on the basis of a deep degree of specialization of a single category. Because companies cross-border to do other categories there will be "unprofessional" risks, after all, most furniture companies in China have no absolute advantage in the segmentation category.

It can be seen that some industry insiders regard specialization and diversification as the choice of different stages of enterprise development. Liu Yongkang, chairman of the China Furniture Brand Alliance, believes that from the stage of enterprise development, the first stage of enterprise development is to seek survival, that is, what to do to make money, this is the only way for enterprises to grow bigger. "You must be strong after you grow up. At this time, you must take the road of specialization. Only professionalization can form a core competitiveness."