Floor Enterprises' Transformation and Upgrade Seek New Changes

As consumer demand continues to evolve, the focus on quality in flooring products has become more critical than ever. For domestic flooring companies, especially smaller and medium-sized enterprises, survival and growth now depend heavily on innovation, brand development, and strategic transformation.

“No transformation means no future, and the faster you transform, the better your chances of survival.” This sentiment is increasingly becoming a reality for the flooring industry. As a result, transformation and upgrading are not just trends—they are essential long-term strategies. Some companies have already launched internal meetings to emphasize that they will restructure their business models and marketing approaches while making comprehensive upgrades across five key areas: management, technology, quality, branding, and team building. These efforts aim to open up new opportunities for growth and competitiveness.

Model transformation is at the heart of this shift. While each company may choose different entry points based on its unique circumstances, the ultimate goal remains consistent: to build a stronger, more sustainable business model. In the past, the industry’s reliance on low-cost expansion and overcapacity has exposed weaknesses, especially during periods of slower economic growth and reduced market demand. Simple innovations may no longer be enough—only through systemic changes and structural reforms can companies truly drive meaningful transformation.

The transition from a low-end to a high-end model isn’t just about eliminating outdated production—it's also about shifting from a volume-driven approach to one focused on quality and efficiency. It involves moving away from external investment as the main growth driver and embracing a more sustainable, science-based model. This shift paves the way for the industry to move from “Made in China” to “Created in China.”

Transforming from a low-end to a high-end model is foundational for the entire flooring sector. Business model innovation has been recognized as a key component in the “Twelfth Five-Year Plan,” emphasizing the importance of moving beyond product and tech innovation to include changes in profit structures, marketing strategies, brand positioning, and development approaches. These transformations could bring a new era of growth and opportunity for the industry. The challenge lies in how effectively companies can innovate and implement these changes.

Facing challenges in the domestic market, some flooring companies have formed brand alliances under the Pan-Family model, creating powerful synergies that exceed 1+1=2. In response to rising costs, energy concerns, and environmental pressures, many have turned to innovations in equipment, processes, technology, and management. By collaborating with upstream and downstream partners, they’ve managed to mitigate challenges and even achieve positive momentum in difficult conditions.