Domestic sanitary ceramics industry urgently needs change

Since the reform and opening up, the rapid development of China's ceramic industry has now become a world leader in ceramic production and consumption. China produces about 70% of the world's total daily-use ceramics, 65% of the world's art ceramics, and architectural ceramics account for half of the world's total production. The cheap labor cost and resource advantages have continuously enhanced the competitiveness of Chinese companies and products, and China’s position in the international ceramics market has continuously improved. The development of the ceramics industry is changing with each passing day, but the operating mode of many companies still sticks to the old methods. Some people in the ceramics industry also pointed out that at present, the business model of the ceramics industry has shown signs of fatigue, and some new products and new methods are in urgent need of new marketing models to reflect the maximization of the value of their products.

Therefore, we can see that the leading companies in the industry have realized the importance of the problem and started to upgrade channel construction through their own initiative. The process of upgrading and transforming the business model is often very painful. However, if it does not advance, it will retreat. If it is not strong, then the ceramic enterprises should take the initiative and take a step forward to occupy the favorable position of the market and survive the waves. Looking at the history of the development of China's ceramic industry, the real market budding of the domestic ceramic industry probably began in the middle and late 1990s. The peak period of development should be from the late 1990s to the middle of the 21st century. Accompanied by the development of the entire ceramic industry, ceramic sales channels are changing. From the perspective of the development history of the industry sales channels, the sanitary ware industry has experienced the development stages of factory direct sales, product wholesale, distributor operations, regional operations, brand sales agency, and franchise operations. No matter which business model, the manufacturer and the channel provider There are both interests and contradictions, but no one can do without.

The traditional factory outlet center is a product of production development and abundant market products. With the emergence of the buyer's market, the production enterprises can not meet the production needs through the distribution of merchandise, sales agency sales, and their own affiliated supply and marketing systems. In particular, a large amount of backlogs of inventory goods need to find their way out. Under such circumstances, some real estate developers have built a contiguous independent store with a certain scale and are easily accessible between the city and the city, and use the rental form for manufacturers to directly sell goods. This type of business group formed directly by the manufacturers is called Factoryoutlctcenter, translated into a factory outlet center or a factory salesroom center. However, in China, especially in the ceramics industry, in order to open the market, manufacturers initially set up a store in the local market and directly sell their own products. With a certain degree of business, they will slowly develop to other places directly. There is a distribution shop there, but this mode of operation will only increase the pressure and cost of the manufacturers. The more the store is opened, the more costs and expenses will be. If there is a mismanagement, manufacturers cannot support it directly. However, there are certain advantages, that is, manufacturers directly control the profit space.

The reporter learned from a number of sanitary companies that many ceramic companies first started to take this business model. It can be said that the accumulation of the original capital, the development of the enterprise to a certain extent, there will inevitably be new sales model. Wholesale business model wholesale business model is generally the agent in order to start up the business, sell the product in batches, get the funds back. However, this business model has a small profit margin, low cost, and does not require much after-sales service. However, this model is only limited to the quantification of products, does not require much investment in costs, and the added value of the brand is not high. Of course, this is also the easiest way to make money. However, this kind of quantified business model has developed to a certain degree and a new business model will inevitably emerge. Therefore, there has been a general agent and district-based business model. The so-called general agent and district-based business model can be understood as dealers are divided by region, such as the provincial general agent, or a certain number of areas added to the general agent. Then expand the business channels to the following prefecture-level cities and counties. However, due to profit considerations, manufacturers often develop the business model to a certain extent and cancel the business model of this general agent, which has evolved into a relatively common brand monopoly agency business model. This model is a normal mode of deposit for manufacturers or merchants. Although the mode of investment in monopoly sales is much larger than that of general agents, it is easy to manage. Manufacturers generally choose this model. Cooperation model, for the business, profit is the primary issue, opening the door is to do business.