Industry downturn Wallpaper companies to control costs is the key

China Paint Network
News: December 12, 2014, Shandong Jinan lead show international home staff to the door of the store to pull up a banner, the content is "the boss of the money absconded to return my hard-earned money." Protest employees at the scene said they did not see anything unusual when they left work on December 10, but when they went to work on the morning of December 11, they found the building sealed, the doors locked and they could not contact the managers of the show's international home. In the past year's home industry, corporate bankruptcy, boss running incidents occur from time to time, in the overall situation of the home industry downturn, many enterprises are also caught in a more embarrassing development situation.
a similar situation in the wallpaper industry, with the exception of a number of unknown businesses that have gone out of business. In mid-2014, the "stone paper" producer, EarthGuard Wallpaper, which claims to have invested 200 million yuan, asked Cui Yongyuan to speak for him. Several of its production sites are experiencing a wave of collective employee pay. Behind the depressed industry environment, wallpaper companies themselves hinder Isu also can not be ignored, want to reverse the situation, wallpaper enterprises from their own start is the best solution.
In recent years, due to optimistic about the development prospects of wallpaper products in China, many enterprises, funds have poured into the industry, because the growth of market demand can not meet the rapid expansion of production capacity of enterprises, so it also caused the current wallpaper products serious surplus situation. The wallpaper market is overcrowded, competition is intensifying, profit margins are shrinking, coupled with increasing human and resource costs, which is why many small and medium-sized enterprises are increasingly difficult to produce and operate. Especially in the "cash for the king" today, the lack of funds, rising costs, declining efficiency and other issues eventually led to the fact that the capital chain broke, but also make the development of wallpaper enterprises into trouble.
in the face of these difficulties and obstacles, the break of the capital chain will lead to more wallpaper small and medium-sized enterprises operating difficulties or even bankruptcy. Therefore, how to prevent capital risk, maintain capital security and improve capital efficiency has become the focus of the wallpaper industry. The driving force and ultimate goal of any wallpaper enterprise is to make a profit, and when the difference between the enterprise and the competitor's market sales revenue is not very large, cost control becomes the key to the enterprise's competitive advantage. Therefore, reducing costs is the only way for wallpaper enterprises to break the ice to make a living. In particular, low value-added wallpaper industry, cost control is particularly important.
industry pointed out that to enlarge to the international market, China's wallpaper industry in brand marketing than Europe and the United States, human resources slightly inferior to some countries in the Asian region, has been in an awkward position. If China's wallpaper industry is to successfully transform, it must break through the situation, through cost control to implement sustainable development, wallpaper industry transformation and upgrading is an important support.
cost control, not for the simple cost reduction and cost reduction, not to reduce costs by any means. In the event of crisis first lay-offs to resolve, in order to reduce costs at the expense of employees, consumers, society and natural interests, but also to relax the product quality standards, to the second best, pit "dad" consumers, are cost-leading misreading and misinterpretation. Wallpaper enterprises naturally can not be so short-sighted.
wallpaper enterprises from raw materials procurement, to product design, production, quality inspection, inventory, to product sales, as well as after-sales service, cost control must run through every link. And each link of cost control must start from the nuances, a large amount of capital losses are often caused by details. Therefore, cost control should start from the details.
optimize your workflow. Wallpaper products from development to sales, construction, is a series of workflow or steps. From the beginning of raw material procurement to the termination of the final product or service, each process incurs significant human resource costs or product wear and tear. Therefore, wallpaper enterprises should try to streamline the workflow, omit the valueless steps, to avoid cost waste. But optimizing your workflow doesn't mean "stealing and reducing material."
reduce inventory. For enterprises, product inventory does not generate any added value, especially in the current situation of overcapacity. It not only takes up space and money, but also incurs handling and storage costs. Because China's wallpaper industry is in a period of rapid development, product replacement speed is very alarming, so wallpaper enterprises are prone to product backlog phenomenon. The value of the backlog will be greatly reduced over time, and inventory corrosion, damage, and waste.
increased transparency in procurement. Any business activities of an enterprise can not be separated from the procurement of materials. Rebates have become an unavoidable "grey area" for wallpaper companies. The source of cost control lies in raw material procurement cost control, which extends to production process cost control, marketing cost control and so on. Therefore, reducing procurement costs is the key and core of wallpaper enterprise cost control.
find new sales channels. In recent years, entry into the big stores has become the main channel for wallpaper sales, but soaring rents have left businesses and dealers struggling. The growing maturity of online sales methods also provides enterprises with more alternative sales channels. Compared with the traditional sales channels in the big stores, the biggest advantage of online sales is to reduce operating costs and store rent. Under the great pressure of rising "incoming fees", more and more wallpaper companies are exploring online sales models.
in the current economic situation, rising costs are inevitable, but that does not mean that costs are out of control. The exploration of new terminal channels by wallpaper enterprises is imperative, which is the key part of reducing the burden for enterprises. Enterprises only work more efforts, from many aspects to control costs, in order to get more profits, in the wallpaper industry on this road to develop better.
wallpaper industry development so far, enterprises all the way to wind and rain is not easy. In this difficult road, although the external environment is not optimistic, but as long as the wallpaper enterprises from their own point of view, can alleviate the difficulties to a certain extent, and ultimately lead to the other side of success.