Bamboo Flooring Industry Development

When talking about bamboo flooring market, lots of people have the same viewpoint that bamboo flooring would be the main flooring in the market, however, its current situation is not very good. Do you know which factors have affected the development of bamboo flooring market? In fact, in order to enlarge the its market shares, some obstacles should be overcome.

As for a emerging industry, bamboo flooring only develop a few years in our country, and now according to latest statistic data, the market shares of bamboo flooring in the whole flooring market is less than 5 percent, however, there are lots of remarkable advantages for the bamboo flooring industry development, for example, both the gross area and output of all kinds of bamboo resource rank the first all over the world, what’s more, 90 percent of moso bamboo grows in our country, as is known to all, among all these bamboo resource, moso bamboo has better performance and high value in use.

In following article, we will mainly discuss why bamboo flooring industry is not developed very well at here.

Firstly, we should consider the industry gross profit rate, in fact, no matter which industry you want to participate, gross profit rate is the first factor which should be considered, what’s more, it is considered as the key whether this industry can be developed very fast and strong. As usual, the gross profit rate of some common industries would be above 40 percent, as for flooring industry, its gross profit rate is only about 30 percent, what’s more, the gross profit rate of bamboo flooring in our country is less than 20 percent, based on such gross profit rate, lots of bamboo flooring manufacturing enterprise will be out of pocket every year, because lots of cost should be spend during its sales process, generally speaking, the logistics cost is about between 5 percent and 8 percent, the market promotion cost is about 8 percent to 10 percent, finally the sale cost would be between 15 percent and 20 percent.

In order to develop very well, the gross profit rate of one industry should be higher than common industry, however, lots of bamboo flooring manufacturing enterprises are the foreign trade enterprises at beginning, which always sell products with low gross profit rate, but they find that the bamboo flooring market can not be developed very well with such low gross profit rate, and most of them change to other industries.

In order to enlarge market shares, the gross profit structure of bamboo flooring industry should be changed completely, for example, you can increase the sales margin to make up such disadvantage so as to increase the gross profit rate of whole industry.