Ceramic sanitary industry faces six challenges

According to the information released by the Ministry of Information and Economic Operations of the China Building Materials Federation, after entering the third quarter of 2012, the steady development of the economic operation of the building materials industry has further manifested, although overall volume prices have rebounded, and the decline in profits has narrowed. , entered the "steady progress," the development track, but the downward pressure on sanitary ceramics is still great.

Facing the obvious signs of bottoming out, China's ceramic sanitary ware industry will still face six major challenges in a long period of time.

Ceramic sanitary industry faces six major challenges in 2013. Cost factors are affected by factors such as inflation. In recent years, the cost of production and operation of the ceramic sanitary ware industry has continued to rise. From labor costs to raw material costs, from management costs to technical innovation, from logistics costs to marketing costs, the continuous increase in costs brings about a thinning of corporate profits. Under the secondary impact of price competition, corporate profitability is increasing. Weakened. The increase in cost has not only become one of the key pressures in the “12th Five-Year Plan” period of the Taoweiye industry, but also means that the golden era of Tao Weiye as a world-scale processing factory has begun to fade gradually. Today, fundamental changes have taken place in the ecological environment and industrial policies. The era of "high growth" has come to an end and the era of "high-cost, low-growth" has come. The cost factor is one of the lifeblood of a company. It is related to multiple deadly links such as the company's capital chain, profit chain, and survival chain. The pressures and challenges from costs are not only a must for Taowei companies, but also one of the key considerations for transformation and upgrading.

One of the motives for the development of “dividend” losing gradually the transformation and upgrading of ceramic sanitary ware industry is that various “dividends” that have supported the rapid development of Tao Weiye have gradually weakened, from demographic dividends to resource dividends, from policy dividends to market dividends. In particular, the demographic dividend, according to relevant data, shows that the number of strong laborers in China will decline by 1.2% each year in the next decade. This, together with the continuous increase in labor costs, will make the comparative advantage of the population bonus of the industry, which is characterized by labor-intensive industries, continue to be lost. At the same time, under the policies and regulations of energy saving and emission reduction, low carbon products, ecological civilization, and green environmental protection, Tao Weiye needs to constantly adjust its development trajectory and seek new comparative advantages and core competitiveness in the loss of dividends. It should be said that at present, the biggest dividend facing Tao Weiye is reform and innovation. It is a fundamental long-term good for economic and social development and has huge domestic market potential. It is still in an important strategic opportunity period.

Transformation and upgrading as one of the hot vocabulary transformation and upgrading, both familiar and strange to the ceramic sanitary ware industry. Familiarity with the additive effect from internal and external factors has already made Tao Weiye go to a dead end. Transformation and upgrading are the only choice for the sustainable and healthy development of Tao Weiye. The strangeness is that Tao Weiye’s practices, directions, and goals for transformation and upgrading are still not very clear and clear. If this type changes, how does that level rise? Product innovation is interrupted by cloning, homogenization, and lack of intellectual property protection environment. What are the criteria for energy conservation, emission reduction, recycling economy, and cleaner production? Where are the roads for innovation in exporting international markets? How are the motives for independent brands and independent innovation? What are the signs of success in the selection, transformation, and upgrading? How can we focus on the development path of quality and efficiency? Therefore, these are all unknown items and all require the ceramic sanitary industry to constantly explore and study, innovate and confirm, and constantly correct and correct.

Overcapacity According to industry sources, in 2012, there were approximately 3,275 ceramics production lines nationwide, with a production capacity of approximately 11 billion square meters per year. Affected by real estate demand regulation in 2012, there is currently over 30% of excess capacity in the country. Since the second half of last year, a large number of factories across the country have entered the state of production cuts, kiln shutdowns and closures in advance. Although the overcapacity in the ceramic sanitary ware industry is now attributed to structural overcapacity, the proportion of high-end products is low, and the status of middle-to-low-end products is in serious oversupply, resulting in fierce price competition. If it cannot be effectively prevented and controlled during the period of structural overcapacity, if it continues to increase production capacity, will it become a full surplus? As a labor-intensive and resource-consumption industry, can it completely complete its own reshuffling and integration? In the face of continued growth in absolute numbers, investment enthusiasm continues to increase, new capacity is similar, and the challenge is industry-wide, requiring all companies to “pay”. The immediate consequence of overcapacity is that the industry is highly homogenized, the efficiency of the company is falling, and the risks it faces may endanger survival.

The industry is highly homogenized in the ceramic sanitary ware industry. The shadow of homogenization covers all aspects of the industry and companies. It can be said that homogeneity is everywhere in the industry. From product to innovation, from marketing to management, from brand to design, and even trademarks are all alike. Due to the development of homogenization for many years, the ceramic sanitary ware industry was lack of design capabilities, lack of personalized product design, lack of motivation for independent brand building, industry homogeneity and immersed in the price war vortex, keen on low-level redundant construction, and urging excess production capacity. The launch date of various innovative products is the beginning of the product's rise from the pinnacle of the masses to civilians. Although not like God, but a combination of price and similarity, once allowed the domestic Taowei companies to deter product innovation. With the immature protection environment of intellectual property rights, the “licious ghost” breeds, and even the phenomenon of “Li Gui” defeating “Li Zhi” has occurred from time to time.

The downturn in the international situation is undeniable. The rise of China's ceramic sanitary ware industry has both the objective factor of accepting the transfer of international ceramic sanitary ware production and manufacturing centers and the coincidence opportunities in the international market. In order to achieve the ceramic sanitary ware production and export powers. However, the international environment it faces is increasingly complex. “Going global” is faced with rare historic opportunities as well as greater risks and frictions. Since 1998, the international financial crisis and the debt crisis have occurred in series, which has not only caused the international market to show a downturn and weakened demand. Downward pressure has caused many companies that specialize in foreign trade, such as Tao Wei, to transform its domestic market, or to develop new markets to avoid international The downward pressure on market demand has also made international trade protectionism increasingly gaining ground. Anti-dumping and other trade barriers have increased. For Tao Wei’s exporting countries, the challenge is no exception.

In the face of severe challenges, where should the ceramic sanitary ware company go? The challenge is a breakthrough for the national pottery industry to become bigger and stronger, and it is a quick way to catch up with internationally renowned brands. Tao Wei Enterprise must not only clarify the development ideas, grasp the pulse of the times and the main theme, and change to a new stage of development with innovation as its core. It is a new era that aims at transformation and upgrading. Only the realization of the Taowei enterprise and the success of the transformation and upgrading of as many Taowei enterprises as possible is the fundamental way to cope with the challenges, achieve the structural adjustment and the transformation of the development mode, and is the best way to realize Tao Weiye’s “Create China” world power. select.