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In the floor industry, 2013 marked a pivotal year for second- and third-tier brands as they aimed to expand beyond their regional bases and establish themselves on a national scale. This period saw several key trends shaping the strategies of these brands, reflecting both challenges and opportunities in an evolving market.
**Trend 1: Strategic Layout of “Spot-to-Face + Horizontal Integrationâ€**
As regional premium brands sought to become national names, the need for a strategic layout became crucial. These brands had to break through geographical barriers and expand into new markets. The focus was on expanding beyond their local regions, with the external market becoming a major driver of growth. By targeting neighboring provinces and implementing horizontal integration—essentially forming strong partnerships—regional brands could strengthen their position and better meet growing consumer demand.
**Trend 2: Building Brand Soul Through Cultural Value**
In 2013, the emphasis shifted from aggressive advertising and promotional tactics to building a deeper brand identity. Brands needed to define their core values and communicate them effectively. Experts highlighted two key aspects: the extraction of cultural claims and the dissemination of those values through appropriate channels. A strong brand soul helped differentiate itself in a crowded market and created emotional connections with consumers.
**Trend 3: Dislocation and Regional Competition**
Rather than directly competing with first-tier brands, which would be costly and inefficient, second- and third-tier brands focused on dislocation competition. This involved targeting niche markets and filling gaps between high-end and lower-cost options. By focusing on regional strengths and avoiding direct confrontation, these brands could thrive without overextending their resources.
**Trend 4: Consolidating the Local Base Market**
Many second- and third-tier brands were already dominant in their local areas, benefiting from strong regional identities and geographic advantages. However, moving beyond these regions proved challenging. Without the support of local networks, brand recognition and customer loyalty could quickly diminish. Therefore, maintaining and strengthening the local base remained a priority.
**Trend 5: Winning with Odds – Reimagining Distribution Strategies**
To gain an edge, many brands began choosing alternative distributors who had access to social and political networks. This allowed them to reach high-end customers and group-buying segments more effectively. By bypassing traditional distribution models, brands could activate new channels and improve their market presence.
**Trend 6: Organizational Rigor and Brand Differentiation**
With multiple sub-brands and product lines, second- and third-tier brands often faced internal conflicts. To address this, they implemented stricter organizational structures, including divisional management and clear market segmentation. This approach reduced brand overlap, minimized price conflicts, and improved overall efficiency.
In conclusion, 2013 was a transformative year for the floor industry, especially for regional brands looking to rise above their competitors. By adopting strategic layouts, building cultural value, and rethinking their operations, these brands positioned themselves for long-term success. As the market evolved, those who adapted and embraced change were best poised to lead the way into a brighter future.