Natural disaster "man-made" Qi strikes China's ceramic producing areas

With the regulation of real estate, rising raw material prices, rising labor costs, and continuous floods and droughts, the trend of China's ceramics industry is sluggish this year. After the recent months have entered the off-season, the already depressed market has been aggravated. After a large-scale production shutdown in the production areas, the Jiajiang and Yunnan production areas in Sichuan have also ceased production. This year's production and sales situation is not optimistic.

Jiajiang Production Area: The production line has stopped production for more than half of the time. From the phenomenon that some Jiajiang ceramics companies open-air piles of enlarged ceramic tiles, it can be seen that the days of these companies are not good enough. The reporter also learned from the person in charge of some companies that many corporate warehouses have been piled up with finished products. Difficulties in sales have once again become a severe test in front of the Jiajiang ceramics industry. According to this situation, the person in charge of the marketing of a large-scale ceramic enterprise in Jiajiang stated that the Jiajiang ceramics industry has already entered a period of reshuffle. Certainly, some enterprises will be shuffled and exchanged for blood in this year's severe market environment.

According to industry sources in Jiajiang, the top five companies in Jiajiang have decided to stop producing conventional products (polishing tiles, antique tiles, tiles) on June 16. A certain famous brand in Guangdong has already been in the local factory. Cut production by 50%. This year's sales reached a new low in nearly two or three years. Industry insiders estimated that production of Jiajiang's production line will cease in the area from late this month to early next month. The discontinuation of production of conventional tiles, polished tiles, and antique tiles will reach over 50% of Jiajiang's local production capacity.

In 2008, the Jiajiang ceramics industry showed signs of reshuffling in the industry. Some companies have been struggling to manage their business, and several companies have stopped production. However, after the Wenchuan earthquake, the reconstruction market made Jiajiang ceramics a new one. Some companies that have already faced closure were put back into production. According to industry sources, in the two years of reconstruction, the market demand was large, competition was small, and the company’s survival was very easy. As a result, a large number of small and medium-sized enterprises went into production and the production capacity expanded rapidly.

This year, in the face of heavy pressures such as power cuts, real estate controls, and raw material prices, Jiajiang companies have become overwhelmed. In the past two years, the ceramic production areas in various regions have continuously emerged. The products in the foreign production areas continue to flow into the southwestern market and continue to occupy the market that was originally occupied by Jiajiang Ceramics. According to industry sources, there are four or five hundred vehicles per month. The ceramics of the foreign production areas entered the Sichuan market. Before, Jiajiang Ceramics occupied 50%-60% of the market share in Chengdu. But now, Jiajiang Ceramics has been marginalized in Chengdu and once occupied the position of “dominant” in the low-end market in Sichuan and Chongqing. Jiajiang has no past scenery. One of the reasons was that local companies lacked awareness of the crisis. During the past two years when industrial upgrading occurred in other production areas, Jiajiang Ceramics was lopsided because of the huge market after the disaster, and there was no danger of thinking, equipment modification, and technology. The technology has gradually fallen behind and the quality of the products has deteriorated. The second is that the influx of products from foreign production areas has impacted the local market. According to sources in the industry, Guangdong's ceramics are shipped to Jiajiang, the quality is better than Jiajiang, but the price is lower than the ex-factory price of Jiajiang Ceramics, and the competitive advantage Obviously, Jiajiang Ceramics naturally lags behind. The third is that the market prosperity of post-disaster reconstruction has long ceased to exist, and some companies rushed to the line in 2008 and 2009, and production capacity was fully released in these two years. About 80% of Jiajiang Ceramics' products are sold in Sichuan and Chongqing. On the one hand, the rapid expansion of production capacity, on the other hand, the limited market capacity. It is understood that Jiajiang currently has no full release of production capacity of about 20% -30%. Therefore, in the situation of “less glutinous rice”, some companies “hungry belly” are inevitable.

The Jiajiang ceramics industry faces two difficulties. First, the product cannot be sold out, the backlog is serious, and the company's cash flow is difficult. Second, the product's profits are too low. The company sells its products only to earn a profit. The actual profits are not high. In the same production area, it is only individual companies that can maintain the balance between production and sales.

Yang Wei, chairman of Sichuan Guangle Ceramics, once said in an interview with this reporter that companies need brands, but the product itself is still the company's core competitiveness, there is no strong product support, no matter how brand building is no use . The ceramics industry is still a low-profile industry, but this is an industry that ceramic distributors are highly concerned about. The vast majority of ceramic companies are difficult to direct their influence directly to consumers, but companies can establish a good image and reputation in the dealership. When most dealers in the market recognize the product quality and reputation of the company, the company It is easier to build outlets and build specialty stores.

However, why are dealers of many ceramic enterprises in Jiajiang unstable, and many dealers of Jiajiang Ceramics are still switching between Jiajiang ceramics brands? When interviewing the market, the reporter had some exchanges with Jiajiang Ceramics distributors. The unstable quality of products and the slow update of product designs are important reasons for their brand changes. Without a solid dealership channel, it is difficult for companies to ensure stable business conditions and to keep moving forward. Without stable product quality, there is no stable dealer group. Therefore, Jiajiang ceramics companies still have to work hard on the product itself. Only if the foundation is firm, can the company go steadily and go further.

Yimen Production Zone: One-third of the production line stopped production Yunnan Province suffered a major drought last year. This year, the weather was in good condition and there was no shortage of electricity. However, the situation in the Yimen area of ​​the southwest border is still not optimistic.

The reporter dialed the phone of Ling Dongxu, Secretary General of the Yimen Ceramics Chamber of Commerce, and talked about the current production and sales situation. Ling Dongxu sighed and said: “Oh, one third of the production lines have been stopped.” Yimen County is The production areas with the highest concentration of ceramics in Yunnan have 18 production lines of ceramic building materials, and the production capacity accounts for about 80% of the province. According to normal development, the acceleration of urbanization in recent years and the improvement of rural living standards have promoted the demand for wall and floor tiles. It should be able to lay the foundation for the ceramic companies in Yimen County to enter the golden age. However, the reality is the opposite. In the past few years, the days of the Yimen ceramics enterprises have become increasingly saddened. Ling Dongxu said that although there were no natural disasters and there were no power cuts in other production areas, the situation this year was even more severe compared with the same period last year.

The director of the office of Asia-Europe Porcelain Co., Ltd. Bai Yuezong received a phone call from reporters and began to complain: "I have problems, now the production and sales problems." Bai Yuezong said that this year's sales fell by 30% compared with the same period last year, now Asia and Europe There are 1.5 million square meters to 2 million square meters of inventory in the factory, and sales continue to go down. Asia and Europe have yet to stop producing production lines, but product inventories are almost full, and there are still between 15,000 and 20,000 square meters of production each day. Speaking of ways to cope with the off-season and inventory, Bai Yuezong sighed and said, "What can we do? If the warehouse is full, we can only stop production and wait for the off-season to digest the inventory again."

Yimeng Ceramics Co., Ltd. Marketing Department officials told reporters that other production areas are either electricity shortages, or floods and droughts, compared to easy door situation is relatively good, but the day is still very sad. "Rising raw material prices, rising electricity prices, and artificially rising costs have risen sharply, but product prices haven't risen. This year, the number of square meters has risen by two cents."

There were rumors in the market that the crisis in other producing areas would bring opportunities for the ceramic industry in Yimen, but this is not the case. The majority of the ceramics in Yunnan's low-end market come from Jiangxi and Sichuan, while the majority of Jiangxi comes from antique bricks, and Yimen does not have an antique brick production line, so there is no direct competition. The reporter saw in the Kunming Guoya Ceramics Wholesale Market that Yimen Ceramics is concentrated in the back of the market, most of whom are directly renting warehouses, setting up offices to do wholesale, and not establishing image stores. Although local ceramics products have price and geographical advantages, because of relatively backward marketing strategies, production strength, etc., compared with foreign products, the competitiveness is not strong. In this year's big economic environment, although there are no natural disasters in Yunnan and there are no power and other limiting factors, due to the inability to break through the original pattern of production and sales and seize the market share of foreign ceramic products, it still faces a sales crisis. And the sales situation is more severe than in any previous year.

The Hunan Tao Enterprise is facing one of the four attacking Hunan as one of the emerging producing areas. It is connected with the large-scale production area in the east of Jiangxi, and the impact of Hubei in the north, Guangdong and Guangxi in the south, Zibo in Shandong, and Jiajiang in Sichuan. Chen Xiong, the chairman of Hunan Jincheng Ceramics Co., Ltd., said that Hunan is a sandwich cookie and is limited to all sides of the occupants.

Since the Foshan Taoqi large-scale migration in 2004, the ceramics industry has been at its peak since 2009, but it has begun to decline in 2010. Chen Xiong’s personal opinion is: “Before 2010, despite the fact that ceramic companies have sprouted after rain, they are still In the construction period, the production capacity has not been fully released, and by 2010, the national layout has been basically stable, production capacity has been released, competition has intensified, ceramic companies have been forced to cut back on sales of capital, and there has been a fierce price war. The film market is mainly Hunan. Before the Jiangxi market, we also accounted for 20% of the market share, and now the Hunan market has been occupied by Jiangxi 40% to 60% share. In addition, in 2011, raw materials and fuel needed for ceramic production rose up, which greatly reduced the profit margin.

Antique bricks have a competitive advantage Hunan Hongkang Ceramics Co., Ltd., which mainly produces antique bricks, has been prosperous since it opened fire this year. Its executive director Ji Xindong said: “Small-scale enterprises may face relatively little pressure, and large companies may suffer from market impact. And in the polished tiles and antique tiles market, the antique brick market still occupies a certain advantage.” He analyzed the advantages of the antique tiles in the current market.

Antique tiles have advantages in production costs. Polishing bricks have more requirements in production, so the prestige rate is lower than that of antique bricks. Antique tiles also have advantages in sales. Today's consumers are increasingly demanding decorative effects. Antique bricks have a wide variety of designs and they have a large selection space and are more in line with consumer needs.

Zhaobang Ceramics is the largest manufacturer of polished tiles in Hunan with a total of 10 production lines. However, the entire kiln has not been open for a long time. At present, only 6 to 7 are opened. The company’s vice president, Cheng Daguang, said: “The products produced by Siu Pong have always been based on Guangdong ceramics, and the production cost is high, but the price is not up. A price increase market will be diverted. The current market can not digest 10 The production capacity." He is optimistic about the antique brick market.

Optimum management To combat the market crisis and face the demands of all enterprises, only Gu Yongming, deputy general manager of Hunan Baisen Ceramics Co., Ltd., has different opinions. He said that the increase in costs has indeed greatly reduced the profit margin of ceramic production, but it can reduce production costs and improve competitiveness through corporate management.

His approach is indeed effective. First, strengthen employee training and develop incentive systems. If the class or group is used as a unit, all rewards will be awarded for high productivity, good quality, and no accidents such as work-related injuries within one month. Since the implementation of the new year, most employees have been punished in March. However, there are rewards in April. The employees are even more nervous than the management staff. Secondly, the construction of corporate culture is strengthened and employees are organized to carry out meaningful activities to increase internal cohesion. The “expanding” activities organized last month were welcomed by employees; the upgrading of the third equipment and the selection of high-quality raw materials can improve the product pass rate and the excellent rate. Every level of product raised is also perceived to reduce the cost of a graded price, which is very impressive.

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