The Development and trend of Chinese modern cupboard industry

For a long time, the room environment of Chinese people, particularly the family kitchen, is generally characterised with small space, simple furnishings and bad sanitary conditions. Aimed at improving the housing conditions of residents, a large number of civilian residentials are built since reform and opening up. Meanwhile,the issue of poor kitchen conditione exposed, due to which a theme "kitchen revolution" was raised by the State Ministry of Construction in 1989. At the end of the 20th century, with the market-oriented reforms of Chinese housing, private housing has gradually become the main force, and the real estate in China has been developing at an unprecedented speed, which benefits home building business and of course, the integral cabinet industry as well.

Relevant data shows that the domestic market capacity of cabinets in 1999 was about 80,000 sets. About 1.44 million families bought new houses in 2000, 12% amony which set up kitchen cabinets in the kitchen decoration, which means the market capacity of cabinet doubled to about 160,000 units. it is predicted that for the next five years the total purchasing power to cabinets of the Chinese city residents will reach 2.9 million units, which are valued as 23.2 billion yuan. The rapid development of cabinet industry depends on three aspects : First, the improvement of people's living standard;second, cabinet occupies an increasingly important position in the decoration with the booming development of real estate; and the third is the change of people's concept about house fitment consumption-the opinion that " kitchen is more important than living room" has not only been deep-rooted in big cities, but also been spread among small cities and towns and countryside.

According to the authorities experts, the perspective of Chinese real estate market is very attractive with an average annual housing demand of 520 million square meters from 2000 to 2010. Suppose they are 60 million family units , 1/3 of which have the demand on cabinets and the cost of each is about 20,000 yuan, then the cabinet market of the whole country during the period should be 400 billion yuan while the annual turnover is only about 50 billion nowadays, and the market gap is obviously enormous. All this proves that the development space for Chinese cabinet industry is very great in the 21st century, and the future is bright.

Advantages of us

As one of the early cabinet manufacturer and dealer in China, AUCMA entered this industry in 1997 and has always been the advocate and practitioners of the "kitchen revolution", and is playing a leading role in the indstry.

With nearly ten years' market and brand accumulation ,AUCMA has become a famous brand in domestic cupboard industries.Up to today,our franchised stores have been founded in provinces all over the country, and the number is rapidly growing.

All the top management personnel of the company have the educational background in famous Chinese universities, some of whom come from the military-industrial enterprises.The company has a huge number of skilled workers, and 30% of the staff are from college graduated or above.

Covering nearly 100,000 square meters, the AUCMA cabinet industry garden has world-class imported production lines, on which 96 fine procedures under ISO9001 system guarantee the "excellent quality" of our products.

Attaching great importance to the reserch and development of new products and technology, we bring new materials and technology into our products according to the latest international environmental standards and style of design.We have eight major series of cabinets products with several hundred patterns and combinations,and the variety of products makes AUCMA in the lead in this industry.

AUCMA has made a huge investment in establishing a networked sale system,and has founded an informaion platform between franchised stores and the headquarter on the internet.

With kitchen and bathroom products at the core,we carry on a diversified operation with a rational combination of product lines of kitchen cabinets, bath cabinets,inner doors and electrical appliances.

AUCMA attaches importance to the cooperation with real estate developers: as one of the manufacturers that earliest provide cabinets as mate facilities to real estate housing in China, we are especially good at cooparating with real estate developers and have built good credit among them.Up to now we have provided cabinets to housing of over 100 well-known real estate companies in Qingdao, Jinan, Beijing, Wuhan, Hangzhou,etc., and "sale with AUCMA cabinets" has become a sales strategy adopted by many real estate developers.

AUCMA cabinet products are exported to over 20 countries and districts including the USA, Canada, Austrilia, Japan and South East Asia etc.

Opportunities

Nowadays there are around 500 cabinet enterprises in China, but those with good scale is still a handful. While in developed countries such as Germany,its biggest cabinets enterprise produces 1500 sets of cabinets per day, and the annual output is up to 350 million US Dollars,which is far beyond the capacity of domestic cabinet enterprises.Hence the development of Chinese cabinet industry requires a reshuffle within the industry-to create several big brands by means of mergers of small companies. As a result of this industry consolidation,good brands benefit customers with good product quality and service,meanwhile mass production brings mass profit as well as lower cost,from which the whole industry will benefit.

With the market-oriented reforms of Chinese housing, the real estate industry in China has been developing at an unprecedented speed, which will inevitably benefit relevant home building industry. In the period of market development, kitchen and bathroom products has a booming market demand.With its strong brand influence and sound sales network,AUCMA enjoys its favorable position of top brands in the market competition of the domestic cabinet industry.

Supports/Advantages

# Support #

01.Brand: a trademark of excellent reputation of nearly 10 years, developing and increasing in value; Consumer Trustworthy Product of Shandong Province, Chinese famous brand, Most Favorable Brand of Cabinet in China , Assigned Product by State Comfortable Dwelling Project;have passed ISO9001-2000 quality system certification.
02."Four uniform": uniform Aukma logo, uniform CI, uniform dress, uniform training.
03.Free order placement for the store layout and sample design.
04.Complete and free staff training.
05.Implementation of standardized management model replicable to franchised stores.
06.Free professional instruction on fitment and decoration.
07.The management and information systems of computer.
08.trong media advertising support all over the country.
09.Sales Network : hundreds of open franchise stores.
10.AUCMA cabinet products of high cost performance:integral cabinets of medium- and high-grade for the mainstream consumer class.
11.Eight major series, hundreds of fashion patterns, and can meet the demand on individuation and diversification.
12.Development department for professional technology provides new products and new technology to enhance the market competitiveness.
13.Big space of profits.
14.Company size : In the cabinet industrial garden of 100,000 square meter, the area of factories is getting larger every year.
15.According to the nearly ten years' experience,an effective marketing system for different regions has been developed in order to bring the profits of franchised stores to maximum.
16.High growth rate : nearly 50% annual growth, and steady development.
17.Regional protection : exclusive agent for each city (except for capital cities).
18.The core competitiveness : unique AUCMA culture + top production and sales volume all over the country

# System Advantages #

01.with the famous brand of AUCMA, reputation of the franchised stores can be rapidly promoted;
02.the replicable store management system which has already been proven by practice can be established;
03.rapid and effective learning and accumulation of management experience;
04.Independent operation with a sustainable development and low-risk;
05.time for preparation and exploration can be reduced;
06.adopting the exsisting store decoration template saves your time, effort and input and speeds up starting of your operation;
07.regional protection highlights competitive advantage and ensures high benefits;
08.global procurement and mass production ensures "low price and high quality"
09.continuous development of new technologies and after-sale service;
10.with the powerful backing of the general corperation,the risk of running enterprise is largely reduced.You can be a boss and you are not alone;

Our franchise concept is : lower operational risks, stable return on investment. We provide comprehensive staff training and products of quality.Operation with care and good attitude will lead you to success.

Conditions and forms

Franchising is mutually beneficial relationship established through contract between the headquarter and league members. The strong cooperation,in which AUCMA headquarter provides its brand and operation technics and franchisees provide finance, manpower and geopolitical relations, will create a win-win situation.

1.Joining forms : AUCMA authorizes its brand and provides products to franchisees, and franchisees make full investment, establish franchised stores and take charge of the operations with independent accounting and own profit and loss. Franchisees should accept the management and supervision on the image and operation from the headquarter.

2.Finance: total investment of 100,000-150,000 RBM yuan/store, differing according to the economic and administrative levels of regions(see table attached)

3.Conditions

1)store area : 180 m2-250m2 or above for regions of AAA grade, over 100m2 for regions of AA grade, over 80m2 for regions of A grade.
2)choice of location : independent store or enter professional market such as building materials market.
3)number of samples : based on the company's standard configuration sheme-over 12 sets for regions of AAA grade, over 8 sets for regions of AA grade, over 6 sets for regions of A grade.
4)store decoration : according to the national unified standard VI program of the coperation.
5)office supplies : fax machine, computer mapping and internet access.
6)requirement on monopoly : Monopoly of AUCMA cabinet products and other related products provided by us.
7)performance bond: 10,000-50,000 RMB yuan, differing according to the economic and administrative levels regions (see table attached).
8)the minimum turnover : listed on the "cooperation contract".

4.Staffing and operational quality

1) The person in charge shall meet the following conditions :

A.with a strong entrepreneurial spirit, capacity of management and operation and the capacity for sustainable development
B.with necessary financial strength and a good credit
C.educated and able to conduct computer management
D.holding correct cognition and adequate any investment risk, investment risk and Aukma earned a correct perception and adequate psychological preparation towards the benefits and risks of the investment,for risk exsists in every investment.

2) Design personnel: at least one designer per store, college graduated or above, computer majored,skillful with AutoCAD, 3DMAX and mechanical drawing.Orginal of the graduate certificate is required during the learning in our company. Learners with acceptable performance would be given working permit, or stores have to recruite new designers to replace those without acceptable performance.
3) narrators : At least one narrator,high school graduated or above, with good appearance,excellent ability of expression and strong communication skills.
4) Installation personnel : at least one installer , junior school draduated or above, communicative, with carpentry background is preferred.

<List of minimum investment>(unit: 10,000 RMB yuan)　　　　　　　　<performance bond>(unit: 10,000 RMB yuan)