Introduction: From the ceramic chemical raw materials, logistics, management costs, ceramic production and operation costs are all "up" sound. Inflation is the main reason for rising prices. In addition, expansion of ceramics companies, non-renewability of mineral resources, rising supply and sales of logistics, and human resource management costs add weight to product costs.
One word in mind, "up", ceramic sanitary ware companies have made a slogan in 2010: "Whatever goes up now means that wages don't go up." Behind the utterly ridiculed words, it brought with it the bitterness of the countless middle class called "Ya Li Shan Da." Indeed, in the global inflationary market, prices are soaring, excess capacity, and the price of living materials are rising. Rice oil and salt prices rose, the ceramic industry does not lose momentum. From the ceramic chemical raw materials, logistics, management costs, ceramic production and operation costs are all "up" sound. Inflation is the main reason for rising prices. In addition, the expansion of ceramics companies, the non-renewability of mineral resources, the increase in logistics in supply and marketing, and the cost of human resources management all add to the cost of products.
Foshan ceramics enterprises in Guangdong responded to the “Eleventh Five-Year Plan†and closed a large number of Foshan ceramics factories and moved them to the surrounding areas. Along with the transfer, the company’s production scale has been continuously expanded. Plant expansion, production capacity increase, and new production lines have been formally put into production. Increase the demand for raw materials. In addition, the contradiction between the non-renewability of mineral resources and the increasing demand in the ceramic industry, the country’s restrictions on the exploitation of resources have become increasingly stringent. In order to prevent labor shortages after the Spring Festival holiday, enterprises have also made a lot of efforts in terms of personnel salaries and employee benefits. The large amount of capital investment is in return for increased costs.
Taking ceramic chemical raw materials as an example, in recent years, ceramic chemical raw materials have been on the rise, and raw material prices have now risen sharply. The supply of potassium-sodium-sanded sand has been very tight. Since the end of 2009, the ceramic raw material market has experienced “prosperous production and sales, and some product prices have continued to rise. "Strong higher" feature. The price of zinc oxide soared from 9,000 yuan to 18,000 yuan per ton; the price of antimony oxide rose from 80,000 to 90,000 yuan per ton, and now 200,000 yuan per ton may not be available; as an important raw material for color glazes In the frit, the price rose from 5,000 yuan per ton to more than 6,000 yuan, up by as much as 20%. Although there was no major change in the clay price system, the logistics factor caused a certain supply shortage and freight charges.
With rising costs, is "to withstand" or "to pass"?
The most direct result of the general increase in raw materials is that the profit rate of ceramic companies has been reduced, and most ceramic companies are responsible. There are even corporate sources who said that the profit rate in 2010 was almost 15 percentage points lower than in 2009, and even individual companies' profit margins fell even more.
Does the building sanitary ceramics product follow the tide of price increase, or can it push up the cost pressure and continue to sell at the established price? The reporter visited some ceramic sanitary ware companies for this purpose and faced the soaring cost of ceramic production, how companies decided. The architectural ceramics industry and the sanitary ware industry have shown different trends. According to market research, the prices of ceramics in the architectural ceramics industry will remain relatively stable in 2011, and the prices of new products for rural development will decline, while high-end products will also You will encounter the challenge of price competition. The sanitary ware industry after the New Year's Day in 2011, facing the high inflationary pressure of the domestic economy, some of the well-known bathroom brands fear the market sales pressure, have raised product prices. Predictably, there will be a collective price increase in the sanitary ware industry in 2011.
Ceramics company, the reporter visited the new Runcheng Group home furnishing ceramics, brand manager Yu Wenwei said, "Since the Spring Festival holiday, the new Run-cheng companies have not yet ordered the price increase. Ceramic raw materials doubled growth, the problem of increasing costs Home companies will encounter, but New Run Shing companies will not easily consider the price increase of products, and will be internally digested through corporate management, production, technology, etc. Under the premise of ensuring product quality, technological innovation will reduce losses to achieve Energy-saving and emission-reduction, and the purpose of increasing revenue and reducing expenditure."
At the same time, many ceramic companies expressed their concern that the increase in the price of product terminals would solve the problem of increased costs, and that the dealers, engineering, and retail customers would be under greater pressure, coupled with fierce market competition and overcapacity, and consumers would not buy it. A series of problems, such as an overstocked inventory, eventually led to the failure of timely return of investment funds, resulting in a lack of cash flow and the occurrence of cassettes in the operation of the industry chain. Therefore, it is difficult to absorb the rise in prices of product terminals to absorb the problem of rising costs.
Sanitary companies visited the reporters but said that the price increase is not necessarily a bad thing for the development of the company. From a certain perspective, it is more likely to promote the development of the industry.
Mr. Fang Chun, general manager of Wrigley's bathroom, said, "China's economic inflationary pressure, all prices are rising, sanitary products is inevitable, this time better reflect the brand's ability to have premium. Under the premise of premium, the brand The quality of products, functions and services put forward higher requirements. If you can provide higher value, make the value and price match, and even value for money, consumers will naturally accept."
Mr. Huang Xinhong, Secretary-General of China Ceramic Industry Association Professional Committee for Building Sanitary Ceramics, also believes that product price increase is the development trend of the industry. Low-price and low-level industry competition is not what we want to promote. The production cost of the Taowei industry is still relatively high. If we still maintain the original level, it will be unfavorable to the development of the industry. He has been advocating to increase the technological content, cultural and artistic content of products, and to increase the added value of the products as a development goal of Taowei's enterprises, instead of blindly winning with scale or winning with low-level competition.
Postscript:
China's ceramic sanitary ware industry faces two major challenges, first is energy conservation and emission reduction, and energy consumption is reduced through technological advancement in production; in addition, ceramic sanitary ware with energy-saving efficacy is produced through innovation. To do a good job in energy conservation and emission reduction, the previous study requires increased investment, and product costs will increase. The second is the rise in the price of raw materials. Due to the fierce market competition, it is difficult to digest through the price increase of the product terminal, which will lead to a decline in unit profit. The rise in product prices does not enter the white-hot stage. It is internal digestion, or the profit cannot be lowered and the price is increased. All these require the company's own control. Just as the ceramic sanitary industry has entered the reshuffle stage in the industry, the price increase is a phenomenon in the ceramic sanitary ware market, and it also boosted the industry's reshuffle. Therefore, ceramic companies should strive to innovate in the big wave of Ebb Tide, research needs, create demand, in order to stand on the forefront of the industry.
One word in mind, "up", ceramic sanitary ware companies have made a slogan in 2010: "Whatever goes up now means that wages don't go up." Behind the utterly ridiculed words, it brought with it the bitterness of the countless middle class called "Ya Li Shan Da." Indeed, in the global inflationary market, prices are soaring, excess capacity, and the price of living materials are rising. Rice oil and salt prices rose, the ceramic industry does not lose momentum. From the ceramic chemical raw materials, logistics, management costs, ceramic production and operation costs are all "up" sound. Inflation is the main reason for rising prices. In addition, the expansion of ceramics companies, the non-renewability of mineral resources, the increase in logistics in supply and marketing, and the cost of human resources management all add to the cost of products.
Foshan ceramics enterprises in Guangdong responded to the “Eleventh Five-Year Plan†and closed a large number of Foshan ceramics factories and moved them to the surrounding areas. Along with the transfer, the company’s production scale has been continuously expanded. Plant expansion, production capacity increase, and new production lines have been formally put into production. Increase the demand for raw materials. In addition, the contradiction between the non-renewability of mineral resources and the increasing demand in the ceramic industry, the country’s restrictions on the exploitation of resources have become increasingly stringent. In order to prevent labor shortages after the Spring Festival holiday, enterprises have also made a lot of efforts in terms of personnel salaries and employee benefits. The large amount of capital investment is in return for increased costs.
Taking ceramic chemical raw materials as an example, in recent years, ceramic chemical raw materials have been on the rise, and raw material prices have now risen sharply. The supply of potassium-sodium-sanded sand has been very tight. Since the end of 2009, the ceramic raw material market has experienced “prosperous production and sales, and some product prices have continued to rise. "Strong higher" feature. The price of zinc oxide soared from 9,000 yuan to 18,000 yuan per ton; the price of antimony oxide rose from 80,000 to 90,000 yuan per ton, and now 200,000 yuan per ton may not be available; as an important raw material for color glazes In the frit, the price rose from 5,000 yuan per ton to more than 6,000 yuan, up by as much as 20%. Although there was no major change in the clay price system, the logistics factor caused a certain supply shortage and freight charges.
With rising costs, is "to withstand" or "to pass"?
The most direct result of the general increase in raw materials is that the profit rate of ceramic companies has been reduced, and most ceramic companies are responsible. There are even corporate sources who said that the profit rate in 2010 was almost 15 percentage points lower than in 2009, and even individual companies' profit margins fell even more.
Does the building sanitary ceramics product follow the tide of price increase, or can it push up the cost pressure and continue to sell at the established price? The reporter visited some ceramic sanitary ware companies for this purpose and faced the soaring cost of ceramic production, how companies decided. The architectural ceramics industry and the sanitary ware industry have shown different trends. According to market research, the prices of ceramics in the architectural ceramics industry will remain relatively stable in 2011, and the prices of new products for rural development will decline, while high-end products will also You will encounter the challenge of price competition. The sanitary ware industry after the New Year's Day in 2011, facing the high inflationary pressure of the domestic economy, some of the well-known bathroom brands fear the market sales pressure, have raised product prices. Predictably, there will be a collective price increase in the sanitary ware industry in 2011.
Ceramics company, the reporter visited the new Runcheng Group home furnishing ceramics, brand manager Yu Wenwei said, "Since the Spring Festival holiday, the new Run-cheng companies have not yet ordered the price increase. Ceramic raw materials doubled growth, the problem of increasing costs Home companies will encounter, but New Run Shing companies will not easily consider the price increase of products, and will be internally digested through corporate management, production, technology, etc. Under the premise of ensuring product quality, technological innovation will reduce losses to achieve Energy-saving and emission-reduction, and the purpose of increasing revenue and reducing expenditure."
At the same time, many ceramic companies expressed their concern that the increase in the price of product terminals would solve the problem of increased costs, and that the dealers, engineering, and retail customers would be under greater pressure, coupled with fierce market competition and overcapacity, and consumers would not buy it. A series of problems, such as an overstocked inventory, eventually led to the failure of timely return of investment funds, resulting in a lack of cash flow and the occurrence of cassettes in the operation of the industry chain. Therefore, it is difficult to absorb the rise in prices of product terminals to absorb the problem of rising costs.
Sanitary companies visited the reporters but said that the price increase is not necessarily a bad thing for the development of the company. From a certain perspective, it is more likely to promote the development of the industry.
Mr. Fang Chun, general manager of Wrigley's bathroom, said, "China's economic inflationary pressure, all prices are rising, sanitary products is inevitable, this time better reflect the brand's ability to have premium. Under the premise of premium, the brand The quality of products, functions and services put forward higher requirements. If you can provide higher value, make the value and price match, and even value for money, consumers will naturally accept."
Mr. Huang Xinhong, Secretary-General of China Ceramic Industry Association Professional Committee for Building Sanitary Ceramics, also believes that product price increase is the development trend of the industry. Low-price and low-level industry competition is not what we want to promote. The production cost of the Taowei industry is still relatively high. If we still maintain the original level, it will be unfavorable to the development of the industry. He has been advocating to increase the technological content, cultural and artistic content of products, and to increase the added value of the products as a development goal of Taowei's enterprises, instead of blindly winning with scale or winning with low-level competition.
Postscript:
China's ceramic sanitary ware industry faces two major challenges, first is energy conservation and emission reduction, and energy consumption is reduced through technological advancement in production; in addition, ceramic sanitary ware with energy-saving efficacy is produced through innovation. To do a good job in energy conservation and emission reduction, the previous study requires increased investment, and product costs will increase. The second is the rise in the price of raw materials. Due to the fierce market competition, it is difficult to digest through the price increase of the product terminal, which will lead to a decline in unit profit. The rise in product prices does not enter the white-hot stage. It is internal digestion, or the profit cannot be lowered and the price is increased. All these require the company's own control. Just as the ceramic sanitary industry has entered the reshuffle stage in the industry, the price increase is a phenomenon in the ceramic sanitary ware market, and it also boosted the industry's reshuffle. Therefore, ceramic companies should strive to innovate in the big wave of Ebb Tide, research needs, create demand, in order to stand on the forefront of the industry.
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