The continued introduction of the national policy of benefiting farmers will stimulate the sustainable development of rural construction. The rural terminal market will be an important piece in the future development of related hardware companies.
At the beginning of this year, the Central Document No. 1 of the Central Government of the People's Republic of China on “Intensive Planning for Urban and Rural Development and Strengthening the Foundation for Agricultural and Rural Development†in the first document in 2010 pointed out that “emphasizing the strengthening of infrastructure in agriculture and rural areas and establishing a sound socialization of agriculture. The grass-roots service system, to strengthen grass-roots organizations in rural areas with the core of the party organization, lay a solid foundation for the development of agriculture and rural areas, coordinate the promotion of industrialization, urbanization and agricultural modernization, and strive to form a new pattern of integration of urban and rural economic and social development.†More specifically It is required that “a sound policy system for strengthening agriculture and benefiting the countryside should be adopted to promote the allocation of resource elements to the rural areas; actively directing social resources to invest in agriculture and rural areas; and vigorously develop rural marketsâ€.
After the “Home Appliances Going to the Countryside†and “Automobiles to the Countryside,†the Central Government has also proposed to seize the opportunity for the rapid growth of rural housing construction and abundant supply of building materials, and to support farmers’ housing construction as a major measure to expand domestic demand and take effective measures. Promote “building materials to the countryside†and encourage farmers to build self-use housing in accordance with regulations.
With the continuous attack of the country's relevant agricultural policies, not only the emphasis on agricultural development and increase farmers' income, but also related to supporting hardware products to open up a new consumer market. As a result, the construction of rural basic projects, the development of agriculture, and the integration of urban and rural areas have also brought about greater consumer markets for related hardware and related products. Hardware companies should pay close attention to this plan as soon as possible, carefully layout, occupy the lead in the game of snatching the rural market.
Infrastructure Project: Promoting Hardware Tools to Open Up Market
The state's preferential agricultural policy has opened up new consumer markets for some agricultural equipment manufacturing industries that are committed to rural infrastructure. The construction of rural basic projects and the development of agriculture will surely bring about a greater consumer market for supporting hardware. Hardware companies can use this to build new consumer markets. It can be said that rural infrastructure projects will further promote the development of hardware tools to open up larger markets.
China is a big country in agriculture. In recent years, with the follow-up of the process of agricultural modernization, agricultural machinery has also experienced new development and it is necessary to better match the machinery and equipment of the rural market. These policies will bring benefits to the hardware and other industries. The input of agricultural production tools can have a stimulating effect on the hardware industry. The iron and steel industry can also use this to digest the inventory, and the refractory manufacturers attached to steel production can also benefit. With the "backflow" of migrant workers brought about by the financial crisis, agriculture will have greater development. The development of agricultural production such as sowing, farming, harvesting, and sieving of grain will also result in the consumption of corresponding production hardware tools such as shovels, hoes and trowels. In the traditional agricultural sector, agricultural tools will continue to be favored, including mechanized equipment and manual hardware tools. Garden hardware tools are also quite popular among farmers in the forests in the mountains. Of course, civil and wood tools are also more promising. Such products are suitable for the needs of rural civil workers. The most worthwhile thing to mention is of course to repair and maintain all kinds of hardware tools. Now.
With the deepening of Huinong’s policy, the rural infrastructure construction project will be further developed. Road construction and civil construction will bring a greater consumer market for supporting hardware. The hardware industry can learn from the home appliance industry’s marketing methods of home appliances to the countryside to open up new consumption. market. According to the features of the hardware industry, new consumer markets have been opened up. For example, the construction of rural infrastructure will inevitably increase the use of construction hardware, and will inevitably increase the demand for construction hardware. Faced with some domestic policies related to domestic demand, hardware companies should establish new consumer markets in due course. Many companies in the hardware and tools industry have faced the huge business opportunities in the rural market, whether they have accumulated the customers of the downstream companies that produce these tools, and whether they have created appropriate products for them?
New Rural Construction: New Opportunities for Door and Window Hardware Development
For many large-scale doors and windows enterprises, the city is still their main battlefield. At present, there are still plenty of room for development in the city to take the high-end routes, and their products do not fully meet the needs of the rural market. Therefore, there are The view is that the countryside is not optimistic for many first-line doors and windows companies, and ultimately the gains that can be obtained are limited.
So, can the first-line doors and windows enterprises break the ice before they break through the ice?
First, the "building materials to the countryside" into the marketing strategy.
With the popularization of new rural construction and urbanization construction, there will be a huge gap in demand for building materials. Rural areas are the last of the building materials industry and the biggest business opportunity. The homogenization of marketing now has reached an incandescent level, and the era in which one product or “one stroke†is used to eat all over the world has already been written into the dusty history. The current market for smoke has entered the era of strategic deciding, and winning the strategic starting line has become the consensus of the vast majority of companies. "Building materials to the countryside" is expected to stimulate spending of about 550 billion yuan each year. It will be a great opportunity for the window and door companies to open up the third and fourth-level markets, and it will also be a watershed for aspiring and promising companies with doors and windows to become bigger and stronger.
Second, expand product lines and develop new products accordingly.
The existing product lines of first-line doors and windows enterprises are mainly aimed at mid-to-high-end markets in large and medium-sized cities. However, this cannot be an important obstacle to the front-line door and window companies' struggle for the rural market. The first-line doors and windows enterprises should change the thinking mode from the inside out, but from the outside to the inside, use their own talents, research and development, equipment and other advantages to develop new products that are closer to the market demand for the market demand of the third and fourth line markets.
Third, channels are actively expanding and sinking.
Channels are the bridge for products to reach consumers. "The channel is the one who gets the world." The existing channel layout of first-line door and window hardware companies is basically concentrated in large and medium-sized cities. First-line doors and windows enterprises must open channels to the third and fourth-tier markets. There are currently two ideal methods for first-line doors and windows enterprises: one is the direct investment promotion of the third and fourth-level channels; the other is the delineation of regions to encourage the development of third- and fourth-tier distributors in the region. The direct investment enterprises have invested more manpower and material resources, but the channels are flattened to facilitate future channel management and construction, and their contribution to sales growth will be manifested in the long term; encourage regional development of distribution, low cost, and rapid sales growth in the previous period, but the management and implementation Difficult channels are difficult to plough deeper, and later growth is difficult. Door and window enterprises should adapt to local conditions.
Fourth, rationally design the brand structure, avoid brand damage, and form a brand force.
First-line doors and windows corporate brand positioning in the high-end, product development in the rural market facing two key issues above the brand: First, worry about the brand will cause damage to the high, difficult thankless: First, after the end of the relevant benefits farmers policy, whether it should Exit the third and fourth line markets. Once it has decided to participate in the competition in the rural market, it will certainly invest considerable material and financial resources. If it quits the market after the end of the policy, it is undoubtedly a huge waste and a serious mistake. One-line doors and windows enterprises should rationally design the brand structure, launch sub-brands for the third and fourth-line markets, and form an endorsement brand brand architecture. In this way, the brand personality of the sub-brand can be fully developed to bring it closer to the third and fourth-line markets, and also to avoid the damage of the original brand and to form a powerful corporate brand together.
V. Strengthen brand integration and publicity.
The price elasticity of the third and fourth-line markets is large, but it does not mean that consumers just pay attention to prices and do not care about brands. In fact, consumer shopping in the third and fourth-tier markets lacks rationality and they are more likely to follow suit. They even love the face more than urban consumers. In their price logic, they are more willing to buy brands, and life branding is the show they dream of. First-line doors and windows enterprises should cleverly integrate the existing advantages of the brand and formulate effective communication strategies. Limited to the current state of the media in the third and fourth markets, outdoor and public transportation advertising will be better.
Find a bathroom market in small towns
According to related investigations, in many small towns that are not noticeable, but hundreds of millions of consumers with certain spending power, they are an important development opportunity in the next 10 years, but many companies have ignored this market.
In fact, the total household income of these small towns is already about 50% higher than that of the first and second-tier cities.
Since small towns in rural areas are relatively unfamiliar to most companies, understanding the psychology and behavior of customers in rural small towns is crucial to the development of corporate brand development strategies and marketing guidelines.
In addition, many companies believe that these remote and backward areas do not have high brand requirements. They may even become sites for selling backlogs and processing products. If they think so, they are wrong. This is precisely the reason why some companies have failed to develop these markets.
However, it is very difficult to enter the market of small cities and towns in China. First of all, the cost of logistics is extremely high, because the population is highly dispersed, the transportation facilities are backward, and the sales network is not perfect. The population of the potentially affluent population in small towns is 135 million, which is equivalent to the total population of 137 million in the first and second tier cities. The average income of the two families is also the opposite, but the former is scattered among the 12,000 small towns and 2000 villages and counties in the country. The difficulty in market development and costs are high. This is also the reason for the failure of Changhong Home Appliances to the countryside in the 1990s. Therefore, it is necessary to have sufficient understanding and preparation for the development of the small town market.
The development of small cities and towns by enterprises is an inevitable trend of China’s economic development, and is also the direction in which the central government develops strategic planning for county economies. Therefore, enterprises must abandon short-term behavior and must adjust their strategic direction, organizational structure, and operating model to overcome difficulties and achieve success. .
First of all, because the rural market is highly fragmented, cultural differences are large, and local living habits and natural environments are very different. Therefore, they have very different requirements for home decoration. Not only do they differ from cities but also vary from country to village. In view of this situation, companies must study Their living habits, and based on their characteristics, develop products that adapt to them, for example, they need to have piling rooms to place production tools, various debris and food and the like, due to differences in the use of the environment, on the tiles The wear resistance and other characteristics will have special requirements. Only by understanding them and designing their favorite products will they be welcomed by the market.
The second is to establish a sales network. The sales model of enterprises for the city certainly cannot apply to the rural market. Since the countryside has a large area, it is necessary to develop a flat sales network, and the company must set up a special leadership organization, organize the forces to research the market, formulate the rural market development strategy, and train Sales staff, this is a long-term action related to the survival of enterprises, any short-term behavior is doomed to failure.
This is followed by reducing logistics costs. In the early stage of development in the United States, the world-famous Sears Company delivered products to villages through mail-order channels, and through this channel, mail-order manuals designed specifically for farmers were sent to farmers through the post office. This is the market synergy, that is, through the post office. This channel is configured to send items. Therefore, our current approach to lowering logistics costs can only be achieved through synergies. In particular, current home appliances to the countryside have become a major trend, and companies must study how to use these existing channels and share resources to share in reducing logistics. cost. The building materials industry must truly go to the countryside and reduce logistics costs. This requires the concerted efforts of the industry and even the industry to develop a new model to achieve the reduction of logistics costs.
Developing a township market with great potential is a big trend and a fertile land for training brands. However, opportunities and challenges coexist, and only companies that use hardware to the countryside as a development strategy are not a temporary solution to the crisis, but also have a corporate structure. We must make changes, invest resources in research, formulate new operating models, cultivate talents, and organize strengths to implement them so that we can seize opportunities and be successful.