In recent years, the debate on corporate diversification and specialization in many home industry forums has been very enthusiastic. Most business leaders believe that the diversification strategy is not suitable for all companies. In the process of building materials and home diversification, the European style case is worth learning. Diversification has become an inevitable choice for large companies in terms of corporate diversification and specialization. In recent years, exchanges in various home industry forums have been very enthusiastic. Most business leaders believe that the diversification strategy is not suitable for all companies. In the process of building materials and home diversification, the European style case is worth learning. Yao Liangsong, chairman of the European Group, explained the European faction at the annual cabinet meeting held in Changsha in 2010 as a “prudent and comparatively advantageous diversification strategyâ€. The reporters on the European website saw that the European industry has covered the whole cabinet, the whole wardrobe, the whole bathroom, the kitchen appliances, the decoration works, the hotel kitchen utensils, the solid surface materials, and even the medical equipment! The reporters saw the “Thousands of Shops†and “Hundreds of People†and the talent recruitment plan of the European facts in various media, indicating that the European faction may be “cautious†in the diversification strategy, but it is absolutely full of energy and enthusiasm. ! And you should have tasted the "sweetness" brought about by diversification. According to industry insiders, the diversification strategy has great advantages for companies with deep foundations, and will provide positive feedback on the growth of performance scale. However, enterprises need to have good talents, technologies and channels in addition to foundations. Strong support in terms of aspects. In addition to Europa, we have also seen a lot of corporate diversification cases. Take the sanitary industry as an example. The three brands of Lehua Group have gone from sanitary ware to ceramic tiles, and they are relatively successful and mature. From ceramic tiles to sanitary wares, such as new Zhongyuan, Huasheng Ceramics, etc. From these cases, it seems that the integration of ceramic tiles and sanitary ware has become inevitable. At the same time, there are more kitchen and tube enterprises entering the sanitary wares. For example, Supor enters the sanitary ware market, and there are rumors that the US group is investing heavily in the sanitary ware industry. There are two traditional pipe companies, Philippine and Rifeng, entering the sanitary ware market. The five major families in Nan'an, Fujian (Jiumu, Huihuang, Shenluda, Zhongyu and Huasheng), almost invariably consider the production of cabinets. There are countless examples of diversification, and some entrepreneurs insist on professional development. For example, GROHE focuses on taps, and its output value abroad is very amazing. But companies that stand out as well as GROHE, such as Moen, are traditional faucet manufacturers, and have launched their own bathroom cabinet products in China this year. The author believes that the faucet and bathroom cabinet products should be organically combined. When the last visit to China Ceramic City saw the exhibition hall of GROHE, it was only a monotonous faucet display, which was difficult to attract consumers to buy. In fact, the faucet products should be combined with bathroom cabinets or basins. A better match between style and function can lead to consumption, which also means that product diversification strategies should be consumer-related. Zhejiang Feizhou, a water producer in Taizhou, is in a leading position in the water separator industry. It should be said to be a very good case in the field of professional products, but this company has launched its own bathroom store this year. From the water machine to the whole bathroom, I believe that this diversification process is not a level, from marketing to brand to product integration, is a new breakthrough. From the perspective of these corporate diversification strategies, another perspective reflects the still strong domestic demand market, and it also represents the multi-integration that companies need to find bigger breakthroughs. But at the same time, some industry insiders pointed out that in the future market structure, the Matthew effect will inevitably occur, the market will be refined, there will be a whole home, and there will be a single product production, forming a supporting + overall market structure. Moreover, as for the diversified strategies that have emerged at present, there are also market analysts who analyze that it is because there are no truly monopolistic enterprises occupying market share in China, and there is still an opportunity for enterprises to enter a diversified market. The diversification strategy of building materials and home furnishing enterprises seems to be “forced†by the market. The overall concept of package consumption, one-stop shopping and services has gradually been accepted by consumers, and the desire for consumers to purchase in sets is significantly stronger than in any previous period. The reporter believes that the diversification strategy led by market demand is very desirable, but only to pursue more types and brands. When the system is bigger, there will be many implementation problems, such as talents, production technology, after-sales service, promotion, etc. Once the company does not have this control capability, it will not be worth the candle. Channel sinking to open up the third-line market In recent years, many building materials and home business managers talked about the regional managers, the most talked about is "advance three lines", "channel sinking." The author saw in a county in Jiangxi Province that there is already a tile and bathroom store in a small township, which is completely absent in two or three years. In the past, a private brand that can only be seen in first- and second-tier cities has a large-scale franchise store in the county. Nowadays, there are indeed many building materials and home furnishing enterprises that have rushed to second- and third-tier cities and even developed township markets by the momentum of home appliances going to the countryside and building materials to the countryside. Moreover, enterprises and distributors have already deeply experienced the difficulty of market saturation in first- and second-tier cities. Therefore, advancing the third line is an inevitable choice for traditional enterprise channels. From the traditional channel, this is a bit of a "life-saving straw" feeling, but for companies, this is not necessarily a new way.
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