Under the new situation, the relevant policies and regulations on urbanization have brought new opportunities to the flooring industry. At the same time, the rising cost of the industry has also caused mixed flooring companies to face mixed challenges and continue to face new challenges. This article explains the current situation of the flooring industry from the perspective of the seven major policies and analyzes the future development direction.
The popular saying in the official forum is “There is a policy, there are countermeasures.” In the conventional understanding, this sentence has a derogatory taste. Too strong, pointing to the phenomenon of “policy” Yang and Yin. However, if it is adjusted to “there are policies, there are decisions”, it is in line with the development of China’s wood flooring industry in the past few years, and it has moved to the international or national policies and promptly turned the rudder. The introduction of policies is in line with the interests and will of the majority of people in this country or region, so individuals or enterprises that survive and develop in this society need to strictly abide by them. From the perspective of green sustainable development, the introduction of relevant policies is for the more standardized and healthier development of the wood flooring industry, and it is a favorable guide for the industry. Therefore, the floor enterprises need to face up to the problems that may exist in the implementation of policies. And actively rectify to achieve longer-term development.
Policy 1: The new urbanization construction floor market is gradually expanding
The party’s 19th report proposes to “promote new industrialization, informationization, and urbanization” “Synchronous development of agricultural modernization” “Building an urban pattern of coordinated development of large, medium and small cities and small towns with urban agglomerations as the mainstay.” This clarifies the mission and direction of socialist urbanization with Chinese characteristics in the new era, and is conducive to promoting regional balance, urban-rural balance, and filling shortcomings in the development of small and medium-sized cities and small towns. In the process of gradual advancement of new urbanization construction, new rural communities have emerged, and urban functional areas have been re-planned, effectively driving the local real estate economy. From the population base, more and more people are included in the urban living system, new housing (new development community) will inevitably increase, and the home improvement and tooling market have considerable breakthroughs. The emergence of new towns has stimulated the revitalization of the real estate economy and created new growth space for the building materials and home furnishing industry, such as the wood flooring industry!
Policy 2: Accelerate the construction and manufacture of strong country flooring industry optimization and upgrading
The report of the 19th National Congress pointed out that to build a modernized economic system, we must focus on the development of the economy on the real economy, and improve the quality of the supply system as the main direction, accelerate the construction of manufacturing power, and accelerate development. Advanced manufacturing. At present, the world has already ushered in a new round of industrial revolution that has a far-reaching impact. What is different from previous industrial revolutions is that it is not dominated by a single technology, but a cluster of innovations, integrated developments and breakthroughs of various emerging technologies. It will set off a new wave of innovation and development. As a traditional manufacturing industry, the wood flooring industry should accurately grasp the connotation of the era of manufacturing a powerful country in the new era, and profoundly understand that technological innovation is an important driving force for manufacturing a strong country. The introduction of intelligent production lines to achieve automation, numerical control, and standardized production operations can not only reduce the dependence on labor, improve the production efficiency of wood flooring and enterprise production capacity, but also eliminate old technology and old technology, and improve the precision of products. Improve the quality of the wooden floor. The wood flooring industry should also accelerate the integration of informationization and industrialization, accelerate the optimization and upgrading of the industry, and use Internet technology to broaden new sales channels and channels of communication. Through the big data to achieve accurate supply, to achieve personalized, customized, intelligent new flooring manufacturing, especially under the impact of “new retail”, the flooring industry needs more online and offline efforts.
Policy 4: Hardcover delivery policy for flooring companies to refine
Since 2016, all over the country have begun to introduce full renovation and fine decoration. According to the policy regulations, the full decoration policy of seven regions will be implemented before 2020, that is to say, the era of “raw house” delivery will gradually withdraw from the real estate market. Fine decoration delivery policy, for large benchmark enterprises such as Anxin, Bell, Nature, Del, St., Jiusheng, Shiyou, etc., there have always been real estate tooling products and departments, in the renovation of the project bidding, capacity guarantee, project management, Standardized systems and methods have been established in design and construction. They are also very familiar with real estate companies and procurement procedures that require fine decoration. They have mature and perfect experience in fine decoration engineering management. But for high-end flooring brands, the appearance of fine decoration may not be good news. After all, ordinary residential real estates generally do not use high-end solid wood flooring, which will kill some consumer opportunities. However, for some small and medium-sized flooring companies, there are many problems such as lack of talents, unfamiliar processes, strict procurement, and more complicated acceptance and delivery. Therefore, standardization and process development of fine decoration products is a major challenge for such enterprises. . Faced with the sudden outbreak of demand for hardcover in the future, flooring companies must cultivate their internal strengths, do a good job of adequate funds and personnel reserves, and then contact the corresponding real estate enterprises according to their own brand positioning, and gradually accumulate and precipitate. Of course, the implementation of fine decoration delivery will involve implementation and supervision. It is necessary for the real estate industry and the home building materials industry to work together to combat unfair competition or avoid abnormally coping with the phenomenon of “superior”. A second renovation occurred in many places. Floor companies may be insignificant in front of real estate giants, but they must adhere to the brand’s consistent philosophy and standards to ensure product quality and service quality.
Policy 5: Real estate policy is booming in the flooring industry
Although the current property market regulation is based on “destocking”, it is still more than the previous two years. A little change. For example, the real estate purchase restriction policy makes it a problem that the proportion of foreign purchases is high in the vicinity of the cities that have been restricted, and there are prominent problems such as excessively high housing prices and strict implementation of regulatory policies. Known as the “China’s wooden floor capital”, Nanxun, as the back garden of Shanghai, the city’s construction is booming, and the price increase has exceeded 40 in one year.%the above. For the flooring industry, focusing on the rapid development of the third- and fourth-tier cities, the brand’s sinking strategy is adjusted and the company is preemptive. With the rise of the middle class, the government canceled the differential credit of commercial banks, and supported the middle-level home buyers through low interest rates, low down payment, and higher loan ceilings for housing provident fund loans. It also gradually eliminated affordable housing and encouraged them to purchase more cost-effective products. Good new or second-hand commercial housing. For the middle class of 200 million people, the flooring industry should understand its consumption behavior, consumption philosophy, consumption habits, and cater to demand and seek better development. The Ministry of Housing and Urban-Rural Development has introduced the commodity housing inventory cycle for more than 36 months, and the city has stopped supplying land; the proportion of down payment for foreigners to purchase houses has increased; the second suite has been restricted; the newly purchased houses have been banned from trading within a certain number of years; the restriction policy has been expanded in cities across the country. The restricted sales team has further expanded. This series of policies to promote real estate “destocking” has inhibited the emergence of real estate economic bubble to a certain extent, and to some extent affected the activity of the wood flooring market. Let’s talk about the real estate tax that has attracted much attention. It is reported that the real estate tax law has been included in the first type of legislative project. The introduction of the real estate tax system is only a matter of time. This is a trend. Many consumers are worried that real estate taxes will become a cost of buying more. Taking the pilot Shanghai as an example, according to the current local tax policy, the real estate tax is indeed a real cost, which may inhibit real estate investment and have a certain impact on the home improvement and wood flooring market. Perhaps the real estate policy may have new content or adjustments in different social and economic development stages and cities in different regions, but the Chinese economy is moving forward step by step. The demand for new housing and secondary decoration is approaching the standard of good living. The floor is healthy, comfortable and beautiful, which is in line with the needs of a beautiful home.
Policy 6: Timber control paint taxation floor industry raw materials rose
Forest forest fires, insects, diseases, and deforestation are serious, countries Tight regulation of timber exports has caused the market to win wood shortages. In recent years, China’s timber production has decreased significantly, making it difficult to meet the needs of the downstream market. In this case, in order to solve the huge demand for wood in our country, we began to increase the import of wood. Therefore, the international dynamics of the timber market will control the power of most flooring companies in China. Since 2017, Mozambique has completely banned the export of unprocessed logs to protect damaged domestic hardwood forests. Malaysia has reduced its 2020 timber export target to $25 billion to $30 billion, a reduction of 43%-53%. Myanmar stopped exporting timber and wood products last May. At the end of last year, Russia imposed a quota system on unprocessed timber exported from the Russian Far East and revised the export tariff rate to reduce log exports. Natural disasters or man-made damages lead to a decline in timber resources, domestic and international markets restrict timber deforestation, and major producers restrict timber exports and other policies, so that the producing countries continue to raise higher export requirements and raise the price of wood for the development of the local economy. China’s flooring market is facing a situation of rising timber prices. The consumption tax on paints collected from February 1, 2015 not only adds to the burden of coating companies in the difficult transition, but also increases the production costs for downstream wooden household enterprises, such as the wood flooring industry. But one thing is certain, that is, it is understandable to promote energy conservation and environmental protection. Floor companies provide consumers with healthier products through the use of environmentally friendly coatings, which is conducive to the formation of market reputation.
Policy 7: Logistics Transportation Costs Adjust Floor Transportation Costs
In July 2016, global container shipping costs increased, including Europe, North America, etc. The cost of container transportation in the six continents of the world has risen sharply. If the cost of overweight is increased, the “collapse collapse” of Hanjin Shipping in September 2016 caused temporary capacity shortage in the container transportation market. In this case, other international shipping The company has taken the opportunity to increase the shipping costs of containers, which is about 100-300 US dollars / cabinet. For example, the 40-foot container shipping rate from East Asia to South America has gone from $500 to $3,285. China’s most stringent “limited tonnage order” issued in 2016 has carried out serious rectification of overloading, overweight and super-wideness of freight vehicles, which has reduced the amount of goods running in the same time and time, which means that the motor transport has also joined the price increase army. For example, the maximum weight limit of the six-axle truck of the largest truck has dropped from 55 tons to 49 tons. As a result, the original transportation of 5 趟 now needs to be transported to 6 趟, and the price of timber transportation has also risen. Perhaps for the high-end materials with high prices, the profits of the merchants are relatively high. The increase of tens to one or two hundred per cubic meter will not affect the profits, although the profits will be affected to some extent. Compressed, but you can still take it lightly. On the whole, the increase in sea and land freight rates has led to an increase in transportation costs, which directly affects the rise in timber prices and increases the production costs of wood flooring companies. In addition, since the implementation of the POS card processing fee collection standard, many merchants who design large-scale consumption have chosen to pass 0.6% of the handling fee to consumers. In the past, buyers bought tens of thousands or even hundreds of thousands of goods in timber merchants or wood flooring companies. The handling fee was up to 50 yuan, but now the handling fee has risen more than ten times. The introduction of the New Deal has increased the pressure on wood purchases of wood flooring companies, and increased the purchase cost of consumers through the transfer of disasters. However, under the advocacy of healthy and comfortable homes, it did not cause substantial sales impact.
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