Shanghai, China, April 7--Power Dekor, a company that sells wood-flooring materials, knew from its outset that being the industry's leader was the only way for a firm with a single product line to grow, according to China Daily.
Since it opened for business in 1995, the company, which listed on Singapore's stock exchange, has been striving to become No 1. The firm may be nearing that mark.
With total revenues of 1.26 billion yuan (US$151.8 million) last year, up 56 per cent from 2003, Power Dekor is widely regarded as one of the nation's biggest players in the laminated-flooring market.
The company's profits jumped 150 per cent last year, to 120 million yuan (US$14.46 million), and its exports increased 178 per cent, to US$11.35 million.
"Our success in winning market share is based not only on the quality of our products, but, more importantly, the quality of our services," said Guo Hui, Power Dekor's vice-president.
"Of course, product quality is important," Guo said. "But for a low-tech, mass-produced product like wooden flooring, the difference in quality between competing brands plays a deciding factor in the fight for market share.
"We set our hearts on the laminated-flooring market back then because of projected high demand for housing in many mainland cities, and the expected boom of the construction industry.
"Once we decided that was the business we wanted to get into, we did a thorough study of the marketplace, not only on the mainland, but also in some overseas countries."
At that time, only a few companies in China produced laminated-wood-flooring products, which were relatively new to the majority of Chinese home owners, who were used to tile flooring.
Power Dekor spent nine months promoting laminated-wood flooring to the public, through advertising and house calls by its sales people.
By the time Power Dekor was ready to begin selling its products, the firm's managers discovered the market was becoming crowded. At least 10 new players had entered the segment.
"These companies were obviously taking advantage of our efforts and investments in promoting the appeal of laminated-wood flooring," Guo said.
Power Dekor quickly changed its strategy. Instead of promoting its product line, the firm concentrated its marketing efforts on building brand recognition around its quality service.
"We were the first in the business to focus on service, which included not only the quality of workmanship, but also health standards and being environmentally friendly," said Liu Shiming, one of Power Dekor's founders.
The company also mounted a publicity campaign against what Liu described as "substandard" laminated-wood flooring being foisted upon customers by unscrupulous vendors.
Its relentless efforts in the fight against inferior products prompted the government to introduce, last year, official guidelines on the quality of the boards and proper installation procedures.
Greater public awareness has led to much stronger demand for quality by consumers. As a result, many vendors, who failed to meet the standards, were forced out of business.
This "victory" was recorded in Power Dekor's year-end report last year, under the heading: "Maintaining the No 1 position as the market continues to consolidate."
"We think we are justifiably proud of our achievements in creating a healthy marketplace by weeding out substandard operators," Guo said.
"It is our responsibility to lead the healthy development of the sector."
Earlier this month, the company shifted its focus to the quality of fittings and after-sales service.
The shift was in response to a report published late last year by the China Flooring Association, which indicated customers complained most about poor fittings and inadequate after-sales services provided by flooring firms.
