Fire door manufacturers expand their channels deep into the county

With the market competition in Tier 1 and Tier 2 cities becoming more intense, the rural markets in Tier 3 and Tier 4 cities and prefectures and counties have gradually matured. Under this situation, the market urgently needs fire door manufacturers to expand their channels in the county.

Nowadays more and more fire door companies are beginning to favor the third- and fourth-tier markets and rural markets. Provincial and municipal agents hope to develop two-level distributors, and second-tier city agents will radiate to the county market to seek new profit growth points.

Third, fourth-line and rural market status:

The emergence of well-known brands In recent years, as national policies continue to lean towards rural markets in the county, some rural economies are now taking off. New farmers in some new villages have already exceeded the income of some urban residents. Therefore, they are building products. The demand has also undergone great changes. Some well-known fire door brands have emerged in the local, county, and even rural markets. When the author interviewed third and fourth-tier cities and townships in Henan, advertisements of some well-known domestic brands have been seen everywhere, and they all have their own small distributors in townships and towns. The arrival of these well-known brands just meets the local residents' pursuit of high quality of life, and shows that the rural market has a certain spending power for medium-to-high-grade fire doors.

Second and third-line brands are more easily recognized. The second and third-tier brands of fire door products are more easily recognized in the county market. On the one hand, due to the generally high cost-effectiveness of the second and third-tier brands, the brand value is not as strong as the first-line brand, but the price is more approachable and at the same time, the quality of the product is also guaranteed; in addition, most of the rural market for fire door products There is no concept of the brand, and the rural market is most sensitive to price. Therefore, the products of the second and third tier brands have an advantage over the first-tier brands in the rural market.

Due to the large added value of the products of the first-line brands, the retail price of the products is too high, and most consumers in the counties cannot afford the high-priced products. The first-line brands want to seize the big cake in the county rural market, must adjust its product strategy, research and development of some cost-effective, both to meet consumer demand for product decoration, but also to control the price at a reasonable level.

Advantages of the third and fourth-tier cities and rural markets:

The profit margin is so great that the market competition in the first and second-tier cities has become very fierce, coupled with high operating costs, the profit space of the merchants has gradually shrunk, and the demand for the strength of the businesses is higher. As a newly-emerged county market competition is far less fierce than first and second-tier cities. Second and third line fire door product brands, the price is relatively low, in the city, the county consumer purchasing power within the scope, the market prospects are more optimistic about the dealers. As the consumption capacity of the consumer market in the counties continues to increase, the terminal profit margin will be even greater.

Low operating costs According to the analysis of dealers, brands are operated in first and second-tier cities, and manufacturers have certain requirements for dealers' storefront area and product inventory. Some dealers revealed that the off-season store sales are not enough to pay rent and property expenses. From the perspective of input-output ratio, the efficiency is not high.

It is understood that in the first-tier cities and second-tier cities, door and window dealers must build a 100-square-meter middle-and-high-end branded specialty store, which requires at least 500,000 startup funds, and only design expenses, models, accessories, materials, etc. Up to 800-1000 yuan / square meter, the rent is delivered on a quarterly basis plus a one-month deposit.

The construction of a 100-square-meter storefront in the cities of the prefectures will have a start-up capital of 1,500-200,000 yuan. If it is in the rural market, the investment in hardware costs will be even smaller, so the dealers' investment will be relatively small and the risk of undertaking will be small.

The prefectural and rural markets are emerging markets for fire door products and are a treasure trove that has not yet been fully exploited. As mentioned above, most rural markets now respond to prices more strongly than fire door product brands. Although in rural areas, many well-known brands of fireproof doors and windows products can be seen (mainly wall advertising), but according to the author's understanding What really occupies the rural and prefectural market is the brand name of the fire protection door industry, but these small and medium-sized brands rarely have regional brand names. For small and medium-sized fire door companies, if they want to occupy a certain regional market in a strong manner, they must act immediately and try their best to exert their advantages in order to reap the fruits of their own.