News

Qianchuan Wood Industry's Luo Baitao: Enterprises Should Also Think Rationally Regarding Rational Consumption

　　[Summary] Future consumption will tend to be rational. Among the more than ten thousand wooden door enterprises in our industry and departments, the number will only increase, not decrease. With so many companies, both large and small, I believe all wooden door enterprises, from big to small, will definitely reflect.

　　[Interview Background] The "China (Beijing) Door Industry Expo," hosted by the China Timber & Wood Products Distribution Association and its Wooden Doors and Windows Committee, and co-organized by the Top 30 Chinese Wooden Door Enterprises with Dual Commitments, grandly opened on February 20 at the Beijing Agricultural Exhibition Hall. This exhibition attracted many well-known wooden door companies to register and participate, and received strong support from the National Federation of Industry and Commerce Furniture Decoration Industry Chamber of Commerce Steel-Wood Door Committee, National Federation of Industry and Commerce Real Estate Chamber of Commerce, German Wooden Door Association, Japanese Wooden Door Association, Liaoning Furniture Association Door Industry Committee, and other organizations. To provide a more high-end and comprehensive report on this door expo, SouFun.com collaborated with many well-known mainstream media to conduct all-round interviews and coverage. The insightful views of many wooden door industry leaders brought consumers the most comprehensive and authentic industry development information.

　　General Manager of Qianchuan Wood Industry Co., Ltd., Luo Baitao

　　Interview Guest: Mr. Luo Baitao, General Manager of Qianchuan Wood Industry Co., Ltd.

　　Interview Date: February 20, 2012

　　Reporter: Wang Xiaoyu, SouFun Home Network

　　[Interview Transcript]

　　[Reporter] Hello everyone, today we are interviewing Mr. Luo Baitao, General Manager of Chengdu Qianchuan Wood Industry Co., Ltd. Hello, Mr. Luo.

　　[Luo Baitao] Hello.

　　[Reporter] Welcome to the Beijing Wooden Door Expo today. May I ask what products Qianchuan Wood Industry is showcasing this year?

　　[Luo Baitao] Our company did not bring any new products to this exhibition. We mainly considered the nature, significance, and purpose of this expo comprehensively. Our company decided to do some corporate culture displays and brand promotion. Regarding our views on the exhibition, we see this platform as a communication hub for the entire wooden door industry. Actually, about 98% of the people here at the exhibition are from within the industry. So we want to take this opportunity. As a standing council member unit of the National Wooden Door Association and one of the drafting units of the national wooden door standards, our company should play a leading and exemplary role. Therefore, despite the long and arduous journey, we came to participate in this China Door Industry Expo.

　　[Reporter] From today's exhibition site, which types of products are visitors more interested in? What changes and trends do you think have occurred in consumers' purchasing demands for wooden doors in recent years?

　　[Luo Baitao] I think with the continuous development of the modern market and the maturing of consumer concepts, I believe that within the next few years, Chinese consumers who are renovating their homes will become more rational in their consumption. Among the more than ten thousand wooden door enterprises in our industry and departments, the number will only increase, not decrease. With so many companies, both large and small, I believe all wooden door enterprises, from big to small, will definitely reflect. Why reflect? Because we need to make our products more rational. Talking about this rationality from several aspects: first, our product prices must be rational; second, our product quality must be rational; third, our service must be rational. I think these three points are especially important. We must ensure our quality and guarantee our standards. The era of excessive profits in the wooden door industry, or the previously perceived high-profit margin in this so-called last golden brick of the building materials industry, I believe this trend will not continue in the coming years. It should be like this.

　　[Reporter] Today, Qianchuan Wood Industry received the honor of being among the Top 30 Wooden Door Enterprises. What do you think are the most important qualifications for companies in the Top 30?

　　[Luo Baitao] Our company has consecutively received the Top 30 award from the China Wooden Door Association for seven years. Our company has always positioned itself as a benchmark and model in the Chinese wooden door industry. Regarding the Top 30 group, I believe that especially in the building materials industry and the wooden door industry, which is a frequently used consumer goods sector, our quality and products should still be the core competitiveness of the Chinese wooden door industry. From this perspective, secondly, with the continuous change in consumer concepts, their service requirements for wooden doors and our industry are also increasing. So I believe that in future competition, it will definitely be a competition of both products and services. Since wooden doors are frequently used consumer goods, word-of-mouth promotion is a very important communication channel. Moreover, our wooden door industry is a low-attention, high-involvement sector. When consumers are not buying, they don't know which wooden door is good, but when they buy, they are very particular. Consumers will seek opinions from friends and family, so word-of-mouth promotion is very important. I think these are the key points.

　　[Reporter] With the real estate market struggling in first-tier cities and the home furnishing industry sluggish, how has Qianchuan Wood Industry adjusted its channel construction?

　　[Luo Baitao] Because 2011 was a relatively sluggish year for the entire Chinese real estate industry, with continuous macro-control policies affecting real estate companies, many companies felt the pressure. But I don't think so. First, the real estate industry has always been growing, although the growth rate slowed down last year and in the first two months of this year, it still grew. This is the first point. The rigid demand in the market is continuously expanding. Second, I think all wooden door companies used to be like many people eating from the same pot when hungry. This year is different; since last year, some changes have started. Now, when hungry, we want to eat from others' mouths. I believe this is also what Darwin's theory of biological evolution says: survival of the fittest. For our company, in 2011, our growth was 45%, which is quite fast for the wooden door industry. We are confident to achieve 80% growth in 2012. Our goal this year is 80%. All our company resources, including sales and production, must ensure this goal. We started a lot of preparation work before and after the Spring Festival. Another key point is the active second-hand housing market. I have learned that many people buying second-hand houses do major renovations and need to replace wooden doors. So I think our channel and dealer concepts must change. The second-hand housing market is actually a big market if done well. Also, some changes in our mid-range promotion methods and discussions in each housing estate's owner forums for publicity, with a service-oriented concept for consumers rather than just sales, is a good growth point. I believe for Qianchuan Wood Industry, 2011 and 2012 should not be considered cold years.

　　[Reporter] With the upcoming March 15 Consumer Rights Day, does Qianchuan Wood Industry have any marketing plans or thoughts?

　　[Luo Baitao] Some thoughts because of the March 15 International Consumer Rights Day. Nowadays, companies and brands have already raised the quality standards to a level that ordinary people don't even need to mention; enterprises should naturally do well. On the contrary, I think March 15 has become a concept for companies to offer discounts and promotions. In response to this, our company, Chengdu Qianchuan Trading Company, has formulated a series of March 15 promotional policies, which have already been distributed to various regions nationwide and are currently conducting some warm-up activities and promotions.