The door business will no longer be like yesterday
Everyone knows that at the moment there is an economic crisis in our country. In general, economic crises occur about once every five years. These periods do not last long, and the economy more or less stabilizes in a year. The crisis affects all companies in different ways. For some, this is a drop in sales from 5 to 95%, while others, on the contrary, experience an increase in sales and revenue.
The crisis shows who is worth what and who will stay afloat. Usually, the overall drop is 30%, and in subsequent years, the volume gradually recovers. The last crisis was observed in 2013, but after it sales did not start to grow, on the contrary, there was an increasing decline in demand. Experts attribute this to the fact that simultaneously with the economic crisis came the collapse of business projects. Today, enterprises organized in the 90s are no longer relevant. New technologies involve new business projects that are aimed at meeting completely different needs of people.
The business of making and selling doors is also changing. Today, a huge number of players are represented on the market, but this is no longer relevant. Gradually, the number of offers and the number of companies will decrease, as the situation is quite complex. But 2017 will bring even more surprises. Companies will have to work with minimal margins and survive in conditions of minimal net profit. The increase in efficiency will primarily affect small companies. The era of the producer is coming to an end, the time of the consumer is coming. This even applies to the rental of premises. Currently, tenants have to spend up to 30% of their net profit on rent payments, while in Europe this figure is only 10%. It is this figure that the Russian economy will strive for today.
What to expect in the near future in the door market
We can talk about global changes starting from the end of 2017. And at the beginning of next year, there will be a complete change of scenery. If the company cannot adjust to the market situation in time, it will simply have to leave it. And even if the company does not want to leave its home, competitors with new ideas will displace them. The number of players will drop dramatically. There will be fewer manufacturers and sellers. The situation in the door market now can be compared with what was in 2016 with large retail chains for construction and repair. The Leroy Merlin store has ousted major players from the Siberian market. Small sellers in the door business will not remain, they will be unprofitable retail trade. The development will take place in three main branches: specialized trade, retail, and DIY. In all this situation, the buyer wins first of all, who will receive better products at an attractive price.
For those who are tormented by questions about how to get out of the crisis as a winner, there are some tips. You can compare your business with playing hockey. You also have a field of activity, a team, a coach, the role of which is performed by the head of the organization. Sales staff are the players who catch the puck-the customer. The profit can be compared with the goal. If the situation seems hopeless to you, you need to take a time-out and answer yourself a few questions:
- Are you playing on the right field?
- Are you satisfied with your production team?
- Do the players work well?
By answering these questions to yourself, you will understand what you are doing in this market and where to go next. In a crisis, we must act quickly.
Pub date: 2021.06.01