Eco-friendly kitchen and bathroom products are getting more and more attention

Eco-friendly kitchen and bathroom products are getting more and more attention Since the beginning of this year, China's economic policies have become more stringent. Facing challenges such as financial shortages, power cuts, labor scarcity, and rising costs of raw materials and labor, the kitchen and bathroom industry—once considered the last untouched market in the home appliance sector—has now entered a cold phase. The "three wastes and two highs" (pollution, waste, and high energy consumption, along with high costs) have pushed the industry into a period of transformation and adjustment. In both primary and secondary real estate markets, the kitchen and bathroom sectors are heavily influenced by property development. Fewer buyers and fewer renovation projects have led to a noticeable decline in consumer activity. With prices on the rise, many customers are adopting a wait-and-see approach. As a result, sales of kitchen and bathroom appliances in chain stores have dropped significantly compared to the same period last year. In third- and fourth-tier cities, the situation is even tougher, as smaller brands struggle to compete with well-established names like Midea and Vantage, while also facing pressure from cheaper, lesser-known alternatives. Their survival space is shrinking rapidly. Moreover, more channel providers are shifting their focus toward full-house solutions, which further complicates the competitive landscape for kitchen and bathroom manufacturers. Internally, the industry faces numerous challenges: product homogenization, inconsistent quality, aggressive price competition, limited R&D investment, unclear brand strategies, and weak after-sales support. These issues raise important questions about how companies will navigate the next phase of growth and maintain relevance in an evolving market. Industry experts note that consumer demand for kitchen and bathroom products is growing steadily. However, the sector is also encountering new obstacles. Manufacturers are now held to higher standards than ever before, and while channel partners have contributed to the industry’s growth, they also bring added pressure. Despite these challenges, the fact remains that kitchens and bathrooms are essential parts of daily life, offering a vast market opportunity for those who can adapt and innovate. Currently, the penetration rate for major home appliances like color TVs and refrigerators has reached 70% to 90%, but the overall kitchen appliance market is still at around 30%. In third- and fourth-tier cities, and especially in rural areas, the penetration rate is much lower, sometimes below 10%. This gap highlights the potential for future growth. Competition is no longer just about price or design; it now involves marketing, integration, supply chain efficiency, product innovation, and brand strength. As the industry becomes more concentrated, there is increasing attention on eco-friendly and sustainable products. More specialty stores focused on kitchens and bathrooms are emerging, signaling a shift toward quality and environmental responsibility. For manufacturers, the path forward lies in embracing change, investing in innovation, and meeting the evolving expectations of consumers.

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