How Sanitary Ware Companies to Seek Self-help Due To COVID-19?

On March 23, the Guangdong Provincial Government Information Office held a press conference. At the press conference, regarding the rumors that the 127th Canton Fair will be postponed, Ma Hua, deputy director of the Provincial Department of Commerce, said that considering the current global epidemic development situation, especially overseas The risk of importing the epidemic is relatively high. The 127th Spring Canton Fair is determined not to be held on April 15 as scheduled.

Except that,

Recently, the sanitary industry associations of the five major bathroom production areas in Foshan, Xiamen, Zhongshan, Heshan, and Kaiping have written to Shanghai Universal Exhibition Company. Due to the impact of the epidemic at home and abroad, the task of resuming production and resuming production is arduous. Effect, it is recommended to postpone or cancel 2020 Shanghai Kitchen and Bath Show!

Cancellations also occur abroad, such as

Japan's March Construction Materials Exhibition Cancelled

In order to avoid the danger of infection, the organizers of several exhibitions in Japan have announced the cancellation of the exhibition. The Tokyo International Building and Home Materials Exhibition was originally scheduled to be held in Tokyo from March 3rd to 6th, and the 2020 Hokkaido Housing and Construction Expo was held in Sapporo from March 4th to 5th. " The 42nd Japan Building Materials Expo held in Tokyo has all been cancelled.

Reasons for cancellation of foreign trade orders and factory shutdown

The exhibitions at home and abroad have been delayed due to the impact of the epidemic. The impact of the epidemic has also affected many foreign trade orders being cancelled and many factories are facing shutdowns. What is the reason for this?

The first is the performance of the order. When the order is postponed, it may be risked by the other party to cancel the order. The number of cancelled orders is about 20%, and the default rate is about 30%.

Secondly, the company's capital flow has also encountered larger problems. The proportion of companies that can only support one month for cash flow is 25%, and the proportion of companies that can support 1-3 months is 50%.

Impact of exhibition extension on 2020 bathroom industry

What are the impacts of the postponement of important exhibitions related to the sanitary industry and the reduction of exhibitors on our development of the sanitary industry in 2020?

The postponement of the exhibition will lead to a significant decline in the transaction volume of manufacturers.

The previous exhibitions were the key channel for docking orders between manufacturers and channel dealers. A large number of orders were signed during the exhibition, and new technologies will also be promoted at the exhibition, and eventually transmitted to the market side and purchased by consumers. At present, the postponement of the exhibition will delay the signing of orders, which will also cause channel dealers to be unable to understand new technologies and purchase new products in advance as in previous years.

The postponement of the exhibition will delay the manufacturer's production plan.

Generally, manufacturers will put into production new technologies in advance according to the progress of previous years, and because new technologies cannot be promoted, manufacturers cannot continue to mass-produce new products, which will lead to longer ramp-up times. In addition, manufacturers used to sign orders at the show to withdraw funds, and due to the postponement of the show, funding pressure will increase.

The postponement of the exhibition also has a great impact on channel dealers.

Every March is the peak time for home improvement and other industries. In the past years, new products have been released and listed at this stage. Channel vendors also have sufficient time to prepare sales strategies and marketing plans. Affected by the postponement of the exhibition this year, the launch of new products will be further delayed. In the past years, the inventory was sufficient and the cost price was relatively low. Channel vendors can also prepare more sales discounts for everyone. .

The postponement of the exhibition also has a great impact on consumers.

For consumers in the sanitary industry, they will not be able to experience new products in the first time as in previous years. Due to the delay in product release, the launch of new products by dealers will be delayed accordingly, so consumers who want to experience new products will have to Wait patiently. For more consumers, it is more intuitive.

How sanitary ware companies to seek self-help?

Affected by the epidemic situation, orders for sanitary ware foreign trade have been cancelled. How can our company seek self-help?

At present, many companies are seeking ways to increase their business scope, such as sales of epidemic prevention supplies, in order to fill the vacancies without main business orders.

In order to actively "self-help", many foreign trade companies have begun to export to domestic sales in the context of high-speed domestic demand consumption, including live-streaming "with goods", trying to sell on e-commerce / social platforms, and receiving domestic orders. Wait. In the eyes of the industry, this may be a new opportunity for foreign trade factories.

However, switching from export to domestic sales is not easy for enterprises. This is both an opportunity and a challenge.

For subsequent new orders, it is recommended that the factory increase the deposit to ensure that the order does not lose money. This way, even if the customer cancels the order or puts it in their warehouse temporarily, there is no need to worry. In the difficult circumstances of reduced customer enquiries and suspended or cancelled orders, companies cannot completely stagnate business. At this stage, customers can be maintained. Whether they are concerned about condolences or sending masks to customers, they can help them after the epidemic situation improves Make orders.