Wooden door market uncertainties are mainly external
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The wooden door market is currently experiencing a period of transformation. This year's economic outlook is expected to be better than last year, but uncertainties remain largely external. Foreign demand is still weak, and there is even a risk of further decline. In response, wooden door companies must prepare thoroughly and adapt to the changing environment.
Since last year, the pan-home market has seen a continuous drop in sales. Although early this year showed some signs of recovery in the real estate sector, the overall performance of the pan-home industry has not improved significantly. Major brand stores in provincial cities are increasingly pulling out of the wooden door segment, which used to be highly sought after by dealers. These stores were once considered prime locations, and many had to use various strategies—like public relations and networking—to gain access. Now, these same brand stores are accepting smaller, previously overlooked brands, signaling a major shift in market dynamics.
This shift reflects a decline in consumer purchasing power. Even hypermarkets in suburban areas have been hit by weaker spending. Despite numerous promotional activities such as advertising campaigns, discounts, celebrity endorsements, and cashback incentives, many stores are still struggling with declining sales and business closures.
Market changes highlight the limitations of traditional production models. The wooden door industry is moving toward more integrated solutions, with many companies shifting from simple manufacturing to comprehensive service models. However, the current home market remains sluggish, and it’s common for dealers to close down, change brands, or even exit the market altogether.
Low-end and mid-tier companies are particularly affected, with shrinking sales and fewer dealers. Since 2008, the cost of wood and the price of wooden doors in mainland China have risen sharply compared to coastal regions like Guangdong. Labor shortages are also becoming a big issue, with skilled workers demanding higher wages. This has led to increased operating costs for wooden door businesses.
Last year’s challenges haven’t fully disappeared, and this year looks even more uncertain. Rising raw material prices, increasing fuel costs, and a 10% rise in logistics expenses are making things harder for businesses. Some custom wooden door owners are feeling the pressure, saying that running a home business is getting tougher.
Experts predict that this year will be a critical time for the custom home industry, with many low-end companies unable to sustain themselves and eventually being eliminated. On the other hand, high-end solid wood products have remained resilient, with some segments reporting a 20%-40% growth. High-end consumers prioritize quality, craftsmanship, design, and service over price, so well-executed projects can still succeed despite market turbulence.
The market is showing clear polarization: one side is struggling, while the other is thriving. As the home industry continues to evolve, companies that only focus on wooden doors, staircases, or flooring may face increasing pressure and eventually exit the market. To survive, businesses need to focus on cost control, human resource management, and pricing strategies.
Professor Yuan Yuan Liu from Renmin University of China noted that China’s economy is expected to continue its recovery in 2013, with positive effects from policy reforms, reduced real estate pressures, and a more stable external environment. While external uncertainties remain, the overall economic situation is expected to improve compared to 2012. Similarly, Minister Chen Deming of the Ministry of Commerce believes that foreign trade conditions next year will be better than this year, with the second half improving further.
Many believe that the wooden door market will see improvement this year, but external factors still pose risks. Companies must be proactive and prepared for the ongoing challenges ahead. As the market continues to shake out, those with strong R&D capabilities and innovation will thrive, while smaller players without technical strength will find it increasingly difficult to survive. The industry is evolving, and only those who adapt will make it through.