Yuan Ruizhi Decoration Materials (Shanghai) Co., Ltd.: The blue ocean of the industry requires the joint efforts of all colleagues

Pei Xiaochuan, Chairman and General Manager of Yuan Ruizhi Decoration Materials (Shanghai) Co., Ltd.: The blue ocean of the industry requires the joint efforts of all colleagues

Hello Mr. Pei, what is the biggest change that the soft carpet industry has encountered in the past six months?

[Pei Xiaochuan]: Hello, this is my first time accepting an interview with Sina media because you are also in the soft decoration sector. As a practitioner in the carpet industry, I should say that the impact has been quite significant after the epidemic. More specifically, there are two trends. Firstly, foreign brands were highly valued and respected in this industry before, but since the epidemic, I feel that people's consumption has become more rational. In fact, from a global perspective, some brands in Europe, America, Japan, and South Korea have indeed performed well in the carpet industry, but in terms of cost-effectiveness, domestic brands are also very good. In the past six months, we have seen the gradual rise of domestic brands, which can replace the demand for some high priced foreign products. This is undoubtedly good news for domestic enterprises. The second point is about the demand side. At present, the performance on the demand side is still weak, whether in the export market or the domestic market. Although China's carpet industry mainly exports mid to low-end products, data from the past six months shows that the consumption intensity in foreign markets has weakened, showing a certain downward trend. At the same time, although there has been an increase in domestic demand with some flat trends, the overall boosting effect is not significant. Therefore, the entire industry still faces significant pressure.

Sina reporter: Currently, what are the main businesses and characteristics of enterprises?

Pei Xiaochuan: Our company, Yuan Ruizhi Decoration Materials Co., Ltd., has a history of 26 years and focuses on the sub field of square carpets. A square carpet, as the name suggests, is a piece of carpet that is usually used in secondary splicing and combination in offices, hotels, and other places. However, in the past two years, we have also begun to pay attention to the application of square carpets in civilian and even household fields. Taking foreign countries as an example, some industry-leading square carpet enterprises have a certain proportion of civilian demand, even reaching 10%, 20%, and 30%. I believe that this market segment can also be said to be a blue ocean for the future, capable of carrying our better development. Our company's characteristic is definitely centered around square carpets, with commercial use being our main business and civilian use being a new direction for us to explore and explore. We hope to develop our own brand and market in the relatively weak area of carpet entering the household market through years of investment and focus.

Sina reporter: What do you think is the biggest difficulty that enterprises are facing in their current development?

Pei Xiaochuan: If the problems faced by the commercial end are more difficult to change trends such as industry homogenization, internal competition, and sluggish consumption, then there are many opportunities for the civilian end, but the biggest difficulty lies in consumer cognition. At present, the domestic flooring material market is mainly dominated by ceramic tiles and wooden flooring, with relatively low awareness and acceptance of carpets. Although carpets are widely used in developed countries such as Europe, America, Japan, and South Korea, leading companies and practitioners in the Chinese market still need to do a lot of promotion and assistance. Therefore, the biggest challenge in promoting more carpet entry into the household market is the change in consumer perception.

Sina reporter: What is your view on the future development trend of the carpet industry?

Pei Xiaochuan: Firstly, as a practitioner in the carpet industry, I feel a bit regretful. Many industries in China have gone through stages of introduction, leveling, and even catching up, but the carpet industry is generally an imported product from the West, and there is still a significant gap between domestic and Western companies that are more outstanding. Therefore, for us, the biggest opportunity and task is to establish our own brand and solidify our foundation. At the same time, in the commercial sector, we need to ensure the survival and development of enterprises. Although some foreign giants are gradually withdrawing from the market, we need to solidify our foundation. This is an important task we are facing. Secondly, we have made some progress in exploring the civilian end. This is not a problem that our company can completely solve, but it requires us, the leading companies in the same industry, to jointly discover the blue ocean. In this process, we can learn from many excellent foreign brands. As a factory, we focus on the Yangtze River Delta region and will also introduce high-quality brands for cooperation. For example, we have become the agent and promoter of the Danish royal brand EGE, hoping to bring this globally acclaimed high-quality product to some mid to high end consumer markets in China. After preliminary exploration, we feel that we have gained a lot.

Sina Reporter: Sina Home also sincerely wishes that Yuan Ruizhi can explore a larger blue ocean belonging to civilian carpets in the future. Thank you very much for your answer.

[Pei Xiaochuan]: Thank you, journalist.