Four Obstacles to Block the Development of China's Bamboo Flooring Industry

As a new industry, bamboo flooring has a relatively short period of development in the country and the market is not yet mature. The area and output of bamboo resources in China ranks first in the world; about 90% of the bamboo with the highest performance and highest utilization value is distributed in China. However, in the entire floor market, the market share of bamboo flooring is minimal, the entire market share of less than 5%, sales have not seen growth. However, the weak status of the bamboo flooring market is not the product quality is not good, but the industry itself has a fatal flaw. These most critical and fatal problems have limited the development of the bamboo flooring industry and have also limited the expansion of the bamboo flooring market. Therefore, the bamboo flooring market has only kept pace and has fallen into the bailout of the market.

First, the issue of market profitability, gross margin is too difficult to increase profit margins is critical for an industry, is the key to assess whether an industry can rise and grow. The gross margin of the general industry is generally more than 40%, the gross profit of the wooden floor industry is more than 30%, and the gross margin of the domestic bamboo flooring is only 20%. As soon as a company puts it into the market, according to the prevailing logistics cost 5-8%, the marketing cost is 8-10%, the sales expense and the dealer's year-end return profit is 15-20%, and the company basically loses money by doing promotion. Moreover, the gross profit margin must reach the level of the ordinary industry, even higher than the level of the general industry, can be suitable for the market to grow. However, nowadays, companies are turning to foreign trade for domestic sales. Their habits are low-margin operations. As a result, they find that their 20-point gross profit is simply not suitable for building shops to advertise. Therefore, many companies did not do it at the end, and they did not dare to advertise. Despite the demand, it is difficult for bamboo flooring companies to expand in the face of low gross margins, making it difficult for the entire bamboo flooring market to do so.

If the bamboo flooring market is to be large, it must change the gross profit structure of the industry. Bamboo flooring companies want to change the status quo in the industry, we should introduce high-margin business model. By improving the high sales margin of the category, it can make up for the lack of gross profit margin, thereby increasing the profitability of the entire industry. For example, Kang Maisen heavy bamboo flooring in the industry has basically solved this problem. When it designed the price of a product, it generally achieved a gross profit of more than 40%, as well as 30% of the distribution. This effectively solved the problem of low gross margin of bamboo flooring, thus ensuring the full interests of the company itself and its stakeholders.

Second, the original material grade problems, bamboo born with cheap bamboo is a symbol of high spirits, bamboo culture has a huge impact on China, exclusively for Chinese culture. Although bamboo has a high national sentiment, it has never been able to become a precious thing in the hearts of the people because of its endless life. The common view held by China’s public for bamboo is that bamboo itself is cheap. If it is suddenly announced to them that how expensive bamboo is, it will be unacceptable. Therefore, when consumers purchase bamboo, they do not have enough sense of quality. Unlike wood, they have high quality and high value, and there are scarcity of tree species. The bamboo is low-cost and it grows faster and more. It has never been scarce, so it is almost inferior to solid wood.

Charcoal and diamonds are also carbon, but they are arranged in different ways and have different values. For bamboo, it has a lot of excellent characteristics in itself, with high toughness and hardness, and there must be room for valuable 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. Kang Maisen made substantive innovations when pushing bamboo flooring, and proposed the concept of “bamboo springs” from the source and processing of bamboo raw materials. The bamboo spring is to extract 100% bamboo ribs as raw materials, which greatly enhances the value and preciousness of bamboo and solves the problem of bamboo grades. At the same time, Kangmai Sen’s bamboo flooring has undergone a period of cultural upgrading of bamboo, thereby enhancing the cultural connotation of bamboo flooring and basically solving this problem. This is a good example.

Third, the product applicability issues, the scope of application is limited The rise of China's bamboo flooring in the 1980s, due to factors such as technology, equipment, industry technology is not mature enough, so there are some hard problems bamboo flooring. Early bamboo flooring was easily deformed, and its service life was short. It was prone to insects. It was not suitable for use in a heating room, resulting in the consumption of bamboo flooring. At the beginning of entering the market, bamboo flooring was mainly sold in the south, and the northern market could not be sold at all. Because bamboo flooring needs a certain moisture content, and the weather in the northern part is too dry, it can easily cause cracks in the bamboo flooring. Even northerners prefer bamboo flooring and do not dare to buy it, which further limits the use of bamboo flooring.

However, after the emergence of heavy bamboo products, basically completed the product problem and solved the problem of applicability. Heavy bamboo flooring density up to 1200kg/m3, is more than 1.6 times the ordinary bamboo flooring, high hardness, high strength, high impact toughness. Therefore, it has the characteristics of high density, high strength, impact resistance, wear resistance and so on. At the same time, it has the advantages of water absorption resistance, no deformation, etc. It is determined that the 24-hour water absorption thickness expansion rate is only 0.4%, which is far better than the European standard of ≤ 2.0%. Bamboo flooring overcomes the deficiencies of ordinary bamboo flooring, but also has a more superior performance, the scope of application is not limited.

IV. Consume guidance problem, lack of attention from mainstream media and promotion of leading brands Bamboo flooring After so many years of development, industry technology has been very mature, but the bamboo flooring market has always been too young and immature. Develop and grow. The reason for this market status lies in 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 instead pay attention to the three major decorative panels, especially solid wood flooring. Although many companies in China are doing bamboo flooring, it is difficult to see advertisements on bamboo flooring, and there is no strong leading brand, so there is a lack of promotion. Bamboo flooring has not entered the mainstream market, and sales rely on people with traditional spirit and feelings. Until recently, some bamboo flooring brands began to do some simple promotion. In general, the bamboo flooring market lacks the media's effectiveness in guiding consumers, and it lacks the strong leadership brand to pass information to the audience.

In order to get consumers' attention, the bamboo flooring market must first inform the audience of the information before it can induce purchases and expand the market. At the same time, it is necessary to carry out a strong promotion of market education in order to improve the social influence of bamboo flooring. This cooperation between companies and mainstream media will jointly promote the development of the bamboo flooring market and educate consumers. If companies continue to promote, the media focus on bamboo flooring to guide consumer trends, then in China and the world, this category will obtain long-term development.

Bamboo flooring has a good market prospect and meets the call of the era of low carbon and environmental protection. It is the mainstream trend of consumption in the future. Compared to other floors, the advantages of bamboo flooring are obvious, and it also caters to consumers' pursuit of health and environmental protection. Facing the ever-increasing competition in the market, the bamboo flooring market has excellent opportunities for development. Therefore, in order to make the bamboo flooring market stronger and bigger, its own fatal flaws have yet to be resolved in order to ensure that the market will develop quickly and well.