The wooden door industry is currently facing a major transformation. The overcapacity in the upstream manufacturing sector has triggered a chain reaction, leading to a slowdown in the home building materials market across several first-tier cities, including Hangzhou. This has exposed operational challenges at all levels—manufacturers, agents, and retailers alike. With the national economic landscape and real estate control policies continuing to shape the market, the entire wooden door sector is undergoing a significant restructuring.
Since last year, sales in the broader home industry have been on a downward trend. Although there were signs of recovery in the real estate market this year, the overall decline in performance for the home sector hasn't been effectively reversed. Major brand stores in provincial capitals are now retreating from the wooden door segment, a move that once seemed unthinkable. These brand outlets were once considered the "golden gates" that dealers desperately wanted to access through various means, but now they are being replaced by smaller brands that were previously overlooked.
This shift reflects a weakening consumer demand. Even hypermarkets in suburban areas are feeling the impact of reduced spending power. Despite aggressive marketing strategies such as advertising campaigns, promotional events, celebrity endorsements, cashback offers, and subsidies, many businesses still struggle to maintain sales or avoid closure. These ongoing changes highlight the inadequacy of traditional single-production models in today’s evolving market. As a result, many wooden door companies are shifting toward more integrated business models, moving beyond just production to offer comprehensive solutions.
Currently, many wooden door retail markets remain in a state of stagnation. It's common to see dealers closing their shops, changing brands, or even transitioning out of the industry altogether. Companies in the lower and mid-range segments, which are experiencing declining sales and fewer dealers, are finding it increasingly difficult to survive. Since 2008, the cost of wood and the price of wooden doors in mainland China have risen more sharply than in coastal regions like Guangdong. Labor shortages are also a growing concern, with skilled workers demanding higher wages, further increasing operational costs.
The challenges faced by the wooden door industry last year haven’t disappeared. This year’s outlook remains uncertain, with additional pressures such as rising raw material prices, higher fuel costs, and a 10% increase in logistics expenses. These factors have made it extremely tough for businesses, especially small custom door manufacturers, who find themselves struggling to stay afloat. Some entrepreneurs feel that running a home business is becoming more challenging than ever.
Experts predict that 2023 will be a pivotal year for the custom home industry, with many low-end companies lacking sufficient capital likely to be weeded out. In contrast, high-end solid wood door segments have not only weathered the downturn but have seen performance improvements of 20% to 40%. Industry professionals note that high-end consumers prioritize quality, craftsmanship, service, and design rather than price. As long as the project meets customer expectations, other details can be easily resolved.
The market is showing clear polarization: one side is struggling, while the other thrives. Due to the broader home industry boom, companies specializing in wooden doors, staircases, or flooring are facing increased pressure and may eventually exit the market. Store closures are becoming inevitable, and profit margins are under threat. To ensure future growth, effective cost management, human resource planning, and pricing strategies are essential.
Professor Yuan Yuan Liu from Renmin University of China stated that the Chinese economy is expected to continue its recovery in the fourth quarter of 2013, driven by ongoing policy effects, tighter real estate regulations, and a more stable external environment. With improved financial conditions, the macroeconomic situation is anticipated to surpass the “new normal†and enter a phase of faster growth. While uncertainties remain, the overall economic outlook for 2013 is expected to be better than 2012.
Chen Deming, Minister of Commerce, also expressed optimism about the foreign trade situation for next year, predicting that the second half would perform better than the first. Many believe that the wooden door market this year will improve compared to last year, although external uncertainties persist, particularly in terms of foreign demand, which could still weaken.
In response to these challenges, wooden door companies must adopt a comprehensive strategy. The market is undergoing a “restructuring†process, with many small enterprises lacking R&D or technical capabilities struggling to survive. Meanwhile, those with strong innovation and technological capabilities are gaining strength and further driving market concentration.
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