The plywood and laminate industry is set to witness big change in 2018 when Cheque payments will be preferred over cash. The year is anticipated to be the reckoning of organized distribution and “Cheque is King” era. Year 2018 will be a defining year for brands who have tirelessly worked hard to build up a chain of trusted dealer network who are selling their brands and have built up a trust among intermediaries who process the panel products. The advantage will go with Organized players because they are capable of taking the competition and fight to even regional levels hence the players selling in just a couple of states or smaller regions will have to face tough time.
The advantage in 2018 will also go to those players who have already made sales teams, system of organizing contractor meets and regular trust building ads with good quality product tag. The mid segment players who have already infused needed capital in books, controlled their cost, enhanced their quality of products and flexibility in tandem with market needs will not face any big challenge in 2018.
The unorganized informal sector will start feeling the shortage of funds and will bear the cost of rise in interest against bank loans. The conclusive effect will mount pressure on small level players that will make a clinching opportunity for bigger players. There is a high possibility that small size or highly unorganized and ignorant players will lose their 20 to 30 sales to such brands who are better placed than them by the end of 2018.