Bamboo floor market expansion is limited by four factors

The area and output of bamboo resources in my country are the largest in the world; about 90% of the bamboo with the best performance and the highest utilization value in the world is distributed in my country. As an emerging industry, bamboo flooring has a relatively short development time in China and the market is not mature. However, in the whole floor market, the market share of bamboo floor is very small, the whole market share is less than 5%, and the sales volume has not increased. However, the weak status of the bamboo floor market is not because the product quality is not good, but the industry itself has fatal flaws. These most critical and fatal problems limit the development of the bamboo flooring industry and also limit the expansion of the bamboo flooring market. Therefore, the bamboo floor market has been standing still and fell into a dilemma of the market.

Market profit margin problem, gross profit is too low to expand

Profit margins are critical to an industry and the key to assessing whether an industry can rise and grow. The gross profit rate of ordinary industries is generally more than 40%, the gross profit of wood flooring industry is more than 30%, and the gross profit rate of domestic bamboo flooring is only 20%. As soon as an enterprise enters the market, according to the general logistics cost of 5-8%, the cost of marketing is 8-10%, and the sales cost and the year-end counter-profit of the dealer are 15-20%. Basically, the company will lose money in promotion. Moreover, the gross profit margin must reach the level of ordinary industries, or even higher than the level of ordinary industries, in order to be suitable for the market to expand. However, the current enterprises are from foreign trade to domestic sales, and their habit is to operate with low gross profit. It turns out that their 20-point gross profit is not suitable for building stores and advertising. Therefore, many companies did not do it after the end, and they dared not advertise. Although there is demand, in the face of low gross profit margins, it is difficult for bamboo flooring companies to expand, so it is difficult for the entire bamboo flooring market to grow.

To make the bamboo floor market bigger, the gross profit structure of the industry must be changed. If bamboo flooring companies want to change the status quo of the industry, they should introduce a high-margin business model. By improving the high sales gross profit of the category, it makes up for the lack of gross profit margin, thereby increasing the profit margin of the entire industry. For example, the Commesen heavy bamboo flooring in the industry has basically solved this problem now. Its gross profit generally reaches more than 40% when designing product prices, and 30% on distribution. This effectively resolves the problem of low gross profit margin of bamboo flooring, thus ensuring the full interests of the enterprise itself and stakeholders.

The original material grade problem, bamboo is innate

Cheap bamboo is a symbol of high style and bright festivals. Bamboo culture has had a huge impact on our country and is exclusive to Chinese culture. Although bamboo has a high national sentiment, but because of its endless growth, it can be seen everywhere in our country and has never become a precious thing in the hearts of Chinese people. The common view held by the public in our country about bamboo is that bamboo itself is cheap, and it would be unacceptable if they were suddenly told how expensive bamboo is. Therefore, when consumers buy bamboo, the sense of quality is not enough. Unlike wood, it has a high-quality and high-value sense, and the tree species is still scarce. And bamboo is cheap and real, and it grows fast and many times. It has never been scarce, so it is almost inferior to solid wood.

Charcoal and diamond are the same carbon, but they are arranged in different ways and have different values. For bamboo, it has many excellent characteristics, high toughness and hardness, and there must be room for value improvement. There is a big difference between heavy bamboo flooring and ordinary bamboo flooring, so the value of heavy bamboo flooring is high, so bamboo flooring can also be conceptually marketed. When Kang Maison promoted bamboo flooring, he made substantial innovations, and proposed the concept of “bamboo spring bars” from the source and processing of bamboo materials. Bamboo spring tendons are made by extracting 100% bamboo tendons as raw materials, which greatly enhances the value and preciousness of bamboo materials and solves the problem of bamboo grades. At the same time, Kangmaison heavy bamboo floor has been upgraded with bamboo culture in the later period, thus enhancing the cultural connotation of bamboo floor and basically resolving this problem, which is a good example.

Consumption guidance problem, lack of mainstream media attention and leading brand promotion

After so many years of development of bamboo flooring, the industry technology has become very mature, but the bamboo flooring market has always been in a too young and immature state, and has not developed and grown. The reason for this market situation is the lack of attention and promotion in the bamboo flooring market. Most of the domestic mainstream media do not pay attention to bamboo flooring, but focus on the three mainstream decorative panels, especially solid wood flooring. Although many domestic enterprises are making bamboo flooring, it is difficult to see the advertisements of bamboo flooring, and there is no powerful leading brand, so there is a lack of promotion. Bamboo flooring has never entered the mainstream market, and sales rely on some people with traditional spirit and feelings. It was not until recent years that some bamboo flooring brands began to do some simple promotion. In general, the bamboo flooring market lacks the effective guidance of the media to consumers, and the lack of strong leading brands to transmit information to the audience.

In order to gain the attention of consumers in the bamboo flooring market, it is necessary to inform the audience of information in order to induce purchases and expand the market. At the same time, it is necessary to carry out strong promotion and market education in order to enhance the social influence of bamboo flooring. This is the cooperation between enterprises and mainstream media to promote the development of the bamboo flooring market and educate consumers. If enterprises continue to promote and the media focus on bamboo flooring to guide consumption trends, then in China and even the world, this category will achieve long-term development.

Bamboo floor has a good market prospect, which is in line with the call of the era of low carbon and environmental protection, and is the mainstream trend of consumption in the future. Compared with other floors, bamboo floors have obvious advantages, and cater to consumers‘ pursuit of health and environmental protection. In the face of the ever-increasing competition in the market, the bamboo flooring market has great opportunities for development. Therefore, in order to make the bamboo floor market stronger and bigger, its own fatal flaws have yet to be resolved, in order to ensure the rapid and sound development of the market.

Product suitability issues, limited scope

Bamboo flooring in my country emerged in the 1980s. Due to factors such as technology and equipment, the industry technology is not mature enough, so there are some rigid problems in bamboo flooring. The early bamboo floor is easy to deform, and the service life is short, and it is prone to insects. It is not suitable for use in heating rooms, resulting in an embarrassing consumption situation of bamboo floors. At the beginning of the bamboo floor entering the market, it was mainly sold in the south, and the market in the north could not be sold at all. Because bamboo flooring needs a certain moisture content, and the climate in the north is too dry, it is easy to cause cracking of bamboo flooring, so even northerners who like bamboo flooring dare not buy it, which further restricts the use of bamboo flooring.

However, after the appearance of Strand woven bamboo products, the product problem was basically completed and the applicability problem was solved. The density of Strand woven bamboo flooring is as high as 1200kg/m3, which is more than 1.6 times that of ordinary bamboo and wood flooring. It has high hardness, high strength and high impact toughness. Therefore, it has the characteristics of high density, high strength, impact resistance and wear resistance. At the same time, it has the advantages of water absorption resistance and no deformation. According to the measurement, the thickness expansion rate of water absorption in 24 hours is only 0.4%, which is far better than the European standard of ≤2.0%. Strand woven bamboo flooring overcomes the shortcomings of ordinary bamboo flooring, and also has more superior performance, and the scope of application is not limited.

Post time: Dec-07-2022