At present, the real estate market is cooling, house sales are not good, and the number of newly built houses and decorations has shown a sharp decline. The construction industry, building materials industry, and decoration industry are all in a difficult situation.
Under such a severe situation, is there really no turnaround in the business and there is no way to continue?
The answer is not so.
In fact, as long as the three directions of transformation can be seen clearly, there is still a chance to achieve a breakthrough.
First, it slowly changed from “waiting for a new house” to “gnawing at the old house”.
In China, the number of existing houses has exceeded 300 million. Among them, a large number of houses that are more than 10 years old are in urgent need of renovation, such as partial renovation of kitchens and bathrooms, refreshing of walls, and replacement of water and electricity pipelines. The demand for these “minor repairs” is extremely strong.
Many companies have taken the initiative to launch packages such as “Quick Installation of Kitchens and Bathrooms in 48 Hours” and “Renewal of Walls in Three Days”, successfully impressing residents of old communities with their short construction period and low noise.
In line with policy trends, the government is currently vigorously promoting the renovation and urban renewal of old communities, and there is a rigid demand for the installation of elevators, exterior wall insulation, and aging-friendly renovations.
Under such circumstances, building materials companies can rely on their own advantages to develop a series of products suitable for the elderly, such as soundproof windows, anti-slip floor tiles, handrails, etc., to meet market demand; decoration companies need to actively and proactively connect with streets and communities, seeking to contract the renovation project of the entire building, and then seize development opportunities during this policy trend.
In the current market environment, focus on in-depth cultivation of “bureau reform” and DIY market.
When the economy is in a downturn, consumers’ consumption concepts have changed significantly. They no longer intend to spend a lot of money on whole-house decoration, but they are willing to spend thousands of dollars to replace a set of customized cabinets, lay floors, or put up background walls.
In response to this situation, standardized and self-selectable module products are launched, and equipped with detailed video installation tutorials, so that owners with strong hands-on skills can complete these tasks on their own.
At the same time, a light service model is given, which is “design + material + guidance”. Through this model, the threshold of unit price can be lowered, thereby attracting more consumers.
This light service model can meet consumers’ needs for personalized decoration, and can also reduce their financial burden to a certain extent. With the help of standardized module products and detailed installation tutorials, owners can more easily realize their decoration ideas. Moreover, the one-stop service of “design + materials + guidance” allows consumers to not worry about too many links when decorating, saving time and energy. This model undoubtedly has great advantages in the economic downturn and can help companies win more market share in the “bureau reform” and DIY market.
In addition, don’t always limit your attention to the residential sector. The renovation cycle of office buildings, hotels, shops and long-term rental apartments is relatively shorter, and the return of funds is more stable. You might as well focus on the refinement of the tooling renovation business.
In the case of fast hotels, they have to update the corridors and guest room walls every year. In this case, building materials manufacturers can consider transformation and supply easily dismantled materials such as environmentally friendly quick-release boards and stone plastic floors.
The current situation in the real estate market is that house sales are experiencing a lukewarm situation, but this does not mean that no one wants to engage in home renovation.
Under such a situation, whoever can be the first to get rid of the “new house dependence” mentality and look at market demand from a more flexible and diverse perspective will have greater opportunities and survive in the current cold winter economic environment!
The essence of business operations is to find a certain growth path amid uncertainty.
In the process of creating and disrupting business, small and medium-sized enterprises need more systematic thinking and practical methods.
