Research On Development Strategy Of Shanghai Kejing Sanitary Equipment Co., Ltd

Under the leadership of the Communist Party of China, China highly holds the principles and policies of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and "Three Represents". China actively takes the road of socialism with Chinese characteristics. According to the reforming and opening up, Chinese economy has obtained enormous achievements in development. Furthermore, the level of income of the people has increased year by year through the continuous efforts. With impressive GDP growth annually, China attracts a large number of overseas investments.With the steady improvement of the Chinese residents’income, quality of life of the people is also increasing rapidly. The annual growth rate of20%in the field of bathroom hardware, the normal function of the product cannot meet the needs of the people at this stage. Today, consumers in the purchase of hardware sanitary products tend to be more concerned about product quality, performance, design concept, brand recognition, etc. Many international high-end brands enter into the Chinese market, and seize the high-end market share. The good news is that the domestic bathroom hardware industry enterprises are actively practicing internal strength, in terms of size, management philosophy and methods, product design, production process, production equipment, and continuously shorten the gap with foreign powerful suppliers of bathroom hardware. In the manufacturing level, the Chinese enterprises have the ability to produce high quality products.Chinese bathroom hardware market looks like a battlefield of the Spring and Autumn War Period. The vast majority of Chinese enterprises still remain in the stage of OEM for foreign companies. Of course, some companies have toward the road of self-designed (ODM). In the low-end market with fierce competition, Chinese enterprises firmly occupy the market share; However, in high/middle end market, especially the top-end market (or called "luxury market"), it has nearly Chinese brands.The speed of Chinese luxury consumption growth increases amazingly, now China becomes the blessed land for luxury goods, however, Chinese Local luxury brands are very limited. In bathroom hardware industry, The KON brand products of KON Sanitary Fitting (Shanghai) Co.,Ltd is the only one local brand. And it is also the only one brand which can form a "complementary" brand for the worldwide top brands. KON brand will also try it best for its four sub-brands in the market segments to be four well-known brands in the world bathroom hardware industry. The four sub-brands are: "KODESIGN" which is specifically for high-end customers for personalized strategies;"KOSTEEL" is the public bathroom products brand and its material is stainless steel for manufacturing."KONOBLE" is luxury brand to the ultimate luxury faucet and hardware accessories;"KAVALE" focuses on the water inlet and outlet products. How to take the right brand and product positioning, and take away from the world’s top brands frontal attack? And using circuitous, even complementary strategy to survive and have a survival place? How to let the KON Sanitary Fitting (Shanghai) Co.,Ltd to be a group company in the following10years, and be an "aircraft carrier" in Chinese sanitary hardware industry, and in the mean while the KON brand and its four sub-brands to be the "planes" on the "aircraft carrier" and complementary with the world’s top brands rather than conflict? How to further subdivide the high-end market and product segments field, and let KON Sanitary Fitting (Shanghai) Co.,Ltd develop steadily in four different segments, and its four sub-brands of the company to become independently subsidiaries by relying on our strong platform in order to spread its wings?This article starts from the macroeconomic environment, industry environment and its internal environmental analysis for KON Sanitary Fitting (Shanghai) Co.,Ltd. It also combines with the SWOT analysis:the strengths, weaknesses, opportunities and threats for KON Sanitary Fitting (Shanghai) Co.,Ltd, in order to leads to the company’s core competencies. Based on core competencies, and use the Boston Matrix to analyze the company’s products and services. Then describe the company’s strategic goals and ideas. Later design and implement the strategic programs and measurements in order to let so that let KON Sanitary Fitting (Shanghai) Co.,Ltd develop steadily in four different segments, and make its brands to form complementary with international top brands rather than simply compete and confront with each other.