This year, the plumbing and sanitary ware market has faced challenges due to real estate regulation. Historically, this industry has always been closely tied to the real estate sector. For example, during 2005 to 2007, a period of rapid real estate growth, the plumbing industry also experienced significant expansion. Even in 2008, amid the global financial crisis, the overall development momentum remained strong.
The past of the plumbing and sanitary ware industry can be described as "small." First, it occupies a relatively small portion within the broader furniture and building materials industry. Second, most companies are not large in scale. Third, the industry's influence has historically been limited.
However, things have changed significantly. According to Luo Baihui, chief analyst at Jinmojia Power Network, the industry has now entered a new phase marked by three "hot" trends. Industry exhibitions and annual conferences have grown substantially, with rich content and increased participation. Last year, over a thousand people attended the Guangzhou conference, including representatives from government departments. This "heat" is evident in several ways:
First, there's a "cross-border fever." Major brands from industries like doors, windows, flooring, and kitchen appliances are entering the plumbing and sanitary ware space. Previously, most plumbing brands came from the building materials and flooring sectors. The advantages of cross-border entry include strong brand reputation, advanced marketing strategies, and the potential for integrated home solutions. However, many appliance companies treat plumbing products as accessories rather than core offerings, which limits their success in this field.
Second, there's an "investment fever." Wealthy individuals from regions like Guangdong, Fujian, and Zhejiang are pouring money into the industry. They either start new brands or invest in existing ones through capital operations.
Third, there's a "talent fever." As the industry grows, professional brands are seeking talent and capital to support their expansion. This has attracted skilled professionals from other sectors, improving the overall quality of the workforce.
While the current "heat" may seem intense or even exaggerated, Luo Baihui believes the industry will eventually become more rational. Looking ahead, the development trend will show three key characteristics: higher specialization, industry growth at around 40% annually, and the emergence of leading brands with mature business models. These could include direct operation, franchise chains, large home concepts, and low-end chain models. As the industry matures, it's set to experience a golden era of rapid development.
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