“The current competition in building decoration industry has begun to transit from market competition to industrial chain competition, which requires enterprise to upgrade strategic thoughts to the level of systematic strategy and to build an integral industrial chain that integrates design, construction and materials.” Hu Zhengfu, General Manager of SDCIC, remarked the other day that SDCIC will base upon the new starting point—the 30th anniversary to extend the industrial chain constantly in a horizontal and vertical way and stabilize its flagship status in Chinese building decoration industry.
As one of the three major pillar industries in building industry, Chinese building decoration industry has benefited from the rapidly-growing domestic economy and constantly-quickening urbanization. The starting point of Chinese building decoration industry is later than developed countries such as Europe, America and Japan, but the development speed is considerable. It is disclosed by well-experienced personnel in the industry that the growth rate has slowed down over these two years, but Chinese building decoration industry has still greeted the period of high-speed growth that is driven by the double demands of “Increment + inventory” after it benefits from China’s urbanization.
Located in Shenzhen, SDCIC has maintained advantages incomparable by domestic fellow traders due to its earliest starting point and daring to innovate. SDCIC has not only created multiple “First” in the industry, such as “The first Chinese decoration enterprise”, “The first Chinese decoration enterprise acquiring import-export power” and “The first Chinese enterprise that independently designs and constructs five-star hotels”, but also participated in the construction of many domestic projects of various scales such as the new CCTV Headquarters, Shanghai Expo and Beijing Capital Airport.
However, the market pattern featuring monopoly has been broken in recent years. As such fellow traders as Suzhou Goldmantis and Zhejiang Yasha have gone public, SDCIC has lost its flagship status although it still ranks first among non-listed decoration enterprises.
In 2010, the state-owned enterprise having a history of nearly 30 years was forced to undergo restructuring. SDCIC has completely realized its crisis and taken the nerve to carry out “Secondary business establishment”. “How can we take foot in this industry and achieve expansion in this industry? I think specialty and dedication is a developmental trend of Chinese building decoration industry and the inevitable result of SDCIC’s development.” At the 2011 Summit for Top 100 Chinese Building Decoration Enterprises, Mr. Hu once remarked openly that enterprise should take the path of professionalization as soon as possible, for only specialty can lead to genuine advancement.
When talking about the future development of Chinese building decoration industry, Mr. Hu said that Chinese building decoration industry has begun to transit from market competition to the level of clustered industrial chain competition through making reference to the path taken by developed countries such as Europe, America and Japan. According to the characteristics of building decoration industry, SDCIC has formally proposed three major strategies for future development. The first one is Important Customer Strategy which features input of SDCIC’s advantageous resources in advantageous customers and high-quality projects; The second one is Branch Strategy which features full utilization of local social resources and establishment of nationwide business network; The third one is Design-oriented Strategy which aims to, through establishing an industrial linkage platform cored with design, promote upstream-downstream linkage of decoration industrial chain and enlarge the overall business scale, with design as the orientation, construction as the priority, and materials as the bond, for the purpose of stabilizing the flagship status of SDCIC in Chinese building decoration industry.
In addition, Mr. Hu has fully realized the power of capital since he has successfully operated listed company. “To corporate development, going public is like multiplication, not addition,” said Mr. Hu. He further pointed out that only by virtue of external capital could enterprise realize quick engagement and rapid development and constantly improve its brand and popularity. “We do not abandon the chance to carry out horizontal and vertical industrial merger.””
