The survival strategies of enterprises dealing with electric telescopic doors in a deflationary environment

Famous economist Xu Xiaonian said that, in general, the Chinese economy is currently in a historic turning point. The rapid growth of industrialization has brought about a peak of development. Various industries and sectors in China have witnessed a phenomenon of overcapacity. The economy has changed from the inflation commonly seen in the past to deflation now. Under the new normal, policies have shifted. In the context of overcapacity, enterprises of electric telescopic doors are beginning to show a depressed mood regarding future development.

Currently, the major challenges faced by Chinese electric telescopic door enterprises at this stage are:

First, the market is showing signs of fatigue, and there is overcapacity.

Over the past decade, China's driving force has gradually waned. The golden era of large-scale construction has come to an end. China's industrialization has basically come to an end, and new construction sites and real estate have gradually slowed down. After a decade of rapid development, the demand for electric telescopic doors has entered a saturation stage. The market fatigue is gradually emerging, and it is no longer possible for telescopic door enterprises to rely on expanding production capacity to achieve sustained development.

Second, technology is homogeneous, and low technology prevails.

Some powerful electric telescopic door enterprises have utilized this decade of rapid development to conduct technological research and development, product research and updates. Latercomers in the electric telescopic door industry simply adopt existing products without much initial development and become followers. A new product is launched and quickly copied, followed by the launch of low-cost and low-price products.

Where should electric telescopic door enterprises go? This is a very serious problem.

1. Electric telescopic door enterprises should shift from traditional manufacturing to research and development and innovation.

The macro environment is the same for all enterprises and all peers. In a deflationary environment, a large number of Chinese manufacturing enterprises are on the path of transforming from cost competition to technological innovation. The next step for telescopic door enterprises to develop technology must rely on their own research and development and continuous innovation to enhance their core competitiveness. Innovation transformation does not mean changing the industry; traditional industries still have huge potential. McDonald's, for example, achieved the standardization and industrialization production of hamburgers, which is the best example of technological innovation in traditional enterprises.

The innovation we refer to can be marketing model innovation, product innovation, innovation in customer service, and so on. Traditional industries can also become sunrise enterprises. Electric telescopic door enterprises need to focus on doing their own business well and strive to be the best in the market, at least better than their main competitors. In this same unfavorable macro environment, enterprises with core competitiveness can develop better than others.

2. Under the new normal, electric telescopic door enterprises need to solve the thinking of traditional industries + Internet

Using the Internet and data technology to transform traditional industries and improve their efficiency is a new way out. We say traditional industries + Internet does not mean that the marketing channels can simply move from the ground to the internet. It is an ecosystem revolution and a comprehensive upgrade to full informationization. Achieving the deep integration of information technology with production manufacturing, enterprise management, marketing, warehousing and circulation. Some enterprises believe that doing Internet + is simply putting existing products on the internet, creating a web page version or an APP, or opening a store on Taobao. Basically, everything is ready, and then carry out activities and distribute flyers, and people will come to pay for goods. This is the gameplay of Internet 2.0. This approach requires you to have money that cannot be exhausted, and second, you need a strategy. Here, the money spent must be able to find subsidies elsewhere.

The traditional industries + Internet we refer to is not Internet + traditional industries. It is using the Internet thinking and technology to change the communication method with future customers, the management method of the team, and the business model to achieve a decentralized entry, big data, and light assets. This will enable the entire industry to achieve its strategic goals of becoming internet-based, branded and internationalized in the future. A balanced ecosystem combining traditional industries with the internet, where the role of channels will be weakened, and customers will directly participate in the design, production and distribution of products. After all, what customers ultimately need are real products and services. Only when Chinese electric sliding door enterprises can find an Internet business model that is truly suitable for the application in the sliding door industry, can it bring value to the industry, solve the industry's pain points, and thus maintain a good development trend in the new era and new normal.