Intense Competition And Corporate Differentiation
- Large number of enterprises: The entry threshold for the heating radiator industry is relatively low, and there are numerous enterprises. However, there are relatively few enterprises with innovative capabilities and high management levels, and a large number of small and micro enterprises are at a disadvantage in market competition.
The advantages of top enterprises are obvious: by 2025, the TOP10 brands in the heating radiator industry will occupy 68% of the market share. Top enterprises will quickly sink through “direct sales+franchising” and have advantages in channels, brands, tecnologia, etc., while small and medium-sized brands will gradually withdraw from the market.
Changes in market demand lead to adjustments in the competitive landscape
- Impact on the real estate market: The adjustment of the real estate market has reduced the demand for radiator installation in new houses, and the enthusiasm of manufacturers and distributors to participate in the engineering market has decreased.
The rise of the southern market: The penetration rate of household heating in the south has exceeded 40%, and the new installation market has driven brands to accelerate their store opening, such as the Yangtze River Delta and Sichuan Chongqing regions, which have become emerging markets for brand competition.
Coexistence of product homogenization and price competition
Serious product homogenization: The industry generally lacks innovation capabilities, and the phenomenon of product homogenization is prominent. Most companies’ products have little difference in terms of functionality, appearance, and other aspects.
Intense price competition: Many small brands compete through low price strategies, causing price chaos in the middle and low-end markets such as hardware stores, eroding the market share of big brands.
Channel competition has become an important aspect
Key to store layout: 70% of consumers need to conduct on-site inspections before choosing radiators, making the store the core entrance for brand customer acquisition. High end brands are upgrading to experience stores, while mid to low end brands rely on community stores and fast loading services.
Channel strategy differentiation: Different brands adopt different channel strategies, such as Golden Flagship focusing on high-end stores, Sende sinking to county towns, and Sunflower densely deploying in building materials cities.
Technological innovation and brand building are gradually receiving attention
Technological innovation trend: The future development trend of the industry is safety, energy conservation, intelligence, low-carbon, environmental protection, etc.. Some enterprises are increasing their research and development investment in new material applications, intelligent control technology, and other areas.
- Increased brand competition: With the upgrading of consumption, consumers’ awareness and loyalty to the brand gradually increase. Brand image, product quality, and after-sales service have become important factors for consumers to choose. Top brands strengthen their brand influence by creating brand activities and improving service standards.
