In the experts’ opinion, in the following few years, the industry will be in the stable phase, and the market will show eight features.
Steady growth
Although the government is surpressing the real estate industry, it’s still the hotest consuming and economic growing point in china. Driven by the developing the western china project, developing the northeast, the renewal of cities throughout the country, and construction of new cities, the total market comsumption in doors and windows and glass walls will grow in steay way.
Large enterprises lead and small enterprises follow
Nowadays, the industry has form a structure that consists of over 100 large enterprises, considered as the major group of the industry, and over 50 of them whose annual sales are over 100 million RMB, as the representatives of the group; and the total output of these companies count for 50% of the industry, providing products to most of the national key projects, city image projects, landscape projects and overseas projects, setting up positive image of the industry and becoming the main force to innovate and brand building and market exploration.
Product structure will dramatically change
The glass wall with visible frame and invisible frame, and the aluminum plate wall are still the mainstream of the market. And in large and medium cities, the Unit-glass-wall will have a bright market future, and glass wall with double layers and intelligent sun shade will become mature and accepted by the market. In the doors and windows market, 55% of the market will use aluminum products, which is a big change in product structure. And influenced by the energy-saving policy of the country and dthe enery crisis around the globe, energy-saving products will be more popular than the past.
Environmental friendly, and energy-saving become the topic
As people’s lives getting better, they have higher demands in living environment. Green consumption becomes the leading concept in the building material market, and that leads to a great business opportunity. Hence, manufacturers not only need to consider the appearance of the building or the physical structure or price of the products themselves but also the general influence of the building to the environment after construction, in order the meet the ecological consumption and lessen the contamination to the surroundings and create more comfortable living conditions.
Less differentiation and more competition
As the market enters the mature phase, competition will be more intense, and profitability will be lessened. Besides, as the products become more and more diverse, forming a multiple market that mainly consists of, aluminum, plastic, wooden, steel, four materials. And new technology will still bring in more new products in the future, which will lessen the differentiations among products and bring in more competition.
Credit crunch and "Matthew effect" will occur
Under the national marcoeconomic control and the credit crunch, the business environment of the industry deteriorates, and more money is needed for one project. Meanwhile, the government requires the building companies to provide the worker’s salary margin, which occupies another part of money and slow down the turnover speed of capital. Therefore, large companies are more likely to get larger business opportunities than the small ones.
Technology and innovations will become the core competitiveness of a company
Competitions become scalizational and international
The industry is inclined to form company groups with larger scales and companies of the whole industry chain will get closer to each other, such as, companies that produce raw materials start glass wall producing or assembly business; different companies begin to realized the importance of cooperation which helps to explore the market and make use of one’s limited resource and advantages, becoming strategical alliances.