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In the ever-evolving landscape of the Chinese wallpaper industry, companies are continuously seeking ways to diversify their sales channels and address the most pressing challenges in distribution. Expanding into new channels has become a strategic direction for growth, but it also brings unique obstacles that must be carefully navigated.
**Store Channels: Balancing Brand Presence and Rising Costs**
Despite the increasing costs associated with physical retail spaces, many leading wallpaper brands continue to prioritize store presence. In major cities, well-known names like Hong Bao and Meikai Long can be found in prominent wallpaper stores such as Ruibao and Longshi. Industry experts suggest that this strategy allows brands to leverage the strong appeal of established retail environments while benefiting from existing marketing and service systems. However, as rental prices soar and logistics and material costs rise, the cost of maintaining these channels is becoming increasingly unsustainable. This financial pressure has forced companies to rely more heavily on traditional retail spaces, creating a dependency that can be difficult to break.
**Independent Stores: A Double-Edged Sword**
As the desire for greater control over brand representation grows, more companies are shifting toward independent store models. For example, Dragonfly Wallpaper set a goal of opening 60 standardized stores in 2013. According to its chairman, Xue Zhangfa, these stores serve as platforms for improved customer service and help maintain consistency across locations through unified pricing and quality assurance systems. While this model offers greater autonomy, it also comes with higher operational costs. The expenses related to labor, training, and maintenance have increased, making it a challenging path for many businesses.
**Tooling Channels: A Growing Opportunity with Risks**
With the shift from rough to fine home decoration, the use of wallpaper in interior design projects is on the rise. However, according to the International Wallpaper Manufacturers Association (IGI), China’s usage rate remains low at only 4% to 6%, mostly in commercial settings. As the home improvement market continues to develop, construction projects are becoming an essential channel for building materials. Yet, entering the engineering sector requires significant investment and careful planning due to high project demands and tight profit margins.
**E-Commerce: A Controversial New Frontier**
The role of e-commerce in the wallpaper industry remains a point of debate. Some industry leaders argue that e-commerce is not yet effective for selling semi-finished products that require professional installation and visual demonstration. Others, however, believe that e-commerce will play a crucial role in the future. With changing consumer habits and digital trends, companies are experimenting with online platforms, though few have yet found a sustainable model.
**Conclusion: Diversification as a Path Forward**
As channel costs rise and product homogenization weakens competitive advantage, the need for diversified marketing strategies becomes more urgent. Building a robust and flexible channel system, combined with innovative customer experiences, may offer a promising path for the industry’s continued growth and transformation.