In 2012, the ingredient water ceramic sanitary ware market will continue to shrink

Many people in the industry believe that according to the current economic situation, it is a matter of time before the ceramic bathroom industry is shuffled. But when will the reshuffle period really come, how long will the downturn in the industry last, which companies will be cleaned, and which companies will rise against the market?

The 2012 or ingredient watershed is currently a tough time, but it is far from the toughest time in the industry. According to Li Zhongguang, deputy general manager of New Pearl Ceramics, according to the current trend, 2012 will be more difficult than in 2011. In 2012, affordable housing will be listed extensively, because affordable housing is mainly targeted at middle- and low-income people, so there will be relatively less secondary renovations. After 2012, it is estimated that the building materials industry will have a new growth point. It can be said that 2012 will be a watershed for the ceramic industry. But when will this downturn in the industry continue? Li Chongguang believes that this is closely related to the government's policy for a period of time. If the state allocates 4 trillion yuan to expand domestic demand in 2008, it will be able to stimulate domestic consumption growth all at once.

Under the influence of the overall environment, most industry players have stated that there will not be a good market sales in the second half of the year and even the next year. Now we can see whether there is a clear direction in the country to increase the sales of products. According to Ding Wei, chairman of Frank Bathroom, the current downturn in the ceramic sanitary industry will continue into 2014, which means that in the next three years, the industry will be trapped in this downturn.

In 2012, the water ceramics and sanitary ware market will continue to shrink, and the shortage of funds will be fatally hit by the country's macroeconomic policies. The decline in the ceramics market this year has become an indisputable fact. Yao Zhengsong, general manager of sales of European and European ceramics, claimed that many business people said "OK," but that is just not willing to speak to the media. The heart is actually very painful. It can be said that the current market is deserted and "unprecedented." Take Euromont Ceramics, although the export market has risen to a certain extent, the domestic market is declining. The northwest and northeast have the most serious decline, reaching 20%. Jia Bin, Marketing Manager of Jiajiang Xinzhongyuan Ceramics Co., Ltd., told reporters that their market sales were sluggish this year, with sales from May to July being about 20% lower than in the same period of 2008.

In such a severe domestic market, powerful companies will behave more professionally. Sufficient financial strength is a powerful guarantee for these companies. Prices are not afraid to rise. Large-scale purchases can be made, production costs can be reduced, and profit margins for products can be increased. Labor costs can be increased, funds can be raised without fear of being scarce, and cash flow can be low. This is for large companies. In terms of nothing, large companies have sufficient cash flow, no competition; peer competition, for large companies, even if the competition is increasing, they are not lost... It can be said that the above four factors are sufficient for large companies with sufficient capital. All are pediatrics. On the contrary, companies that are short of capital are deadly blows, and each of these factors is almost profit-taking. If handled improperly, they will die.

Which companies will fall unfortunately?

According to Fenwick bathroom chairman Ding Wei said that in July this year, the ceramic sanitary ware industry has already had a number of companies unable to support it and fell. The next month, the situation will be even more severe. Ding thinks that this situation will occur in addition to the domestic and foreign economic environment, but also related to the blind entrepreneurship of domestic business owners. In the sanitary ware industry, the threshold for entry is not high, as long as money is available, and it does not require a high level of technology. Due to the unbalanced income of the boss and the employee, the boss’s income is generally much higher than that of the employee. Therefore, the people all like to start a business, and in addition, the domestic investment channels are relatively narrow. In fact, the gap between the rich and the poor is very large in China, and there are many rich people. However, these people do not know where to invest, so they choose to start their own businesses. However, the proportion of successful investment is less than 20%. As a result, those companies that do not have long-term plans and lack strategic vision have fallen during the industry downturn.

According to Zhang Nianchao, deputy general manager of Jinyi Ceramics, in the olive-shaped industry layout, the companies in the middle are more affected. Rural areas and small cities and towns provide a market for many small businesses. Cities provide a market for large companies. Instead, they are middle companies. They can't get up or down, and are more vulnerable to shocks.

Many small and medium-sized enterprises have pressed experts to believe that, theoretically, small businesses have a broad market for rural areas. However, judging from the current competitive situation, once large and medium-sized enterprises are under pressure to transfer the market down, small businesses will suffer. When the environment is relatively harsh, people's consumption will be relatively cautious and consumption will show a downward trend. For example, if a person bought a brand-name T-shirt for 1,000 yuan, he would choose a few hundred yuan, and if he used to wear a few hundred yuan, he would choose 100 yuan, and so on. This will lead to changes in the positioning of the entire industry, but this is not a two-day formation, but long-term formation.

Yao Zhengsong, general manager of sales of European and European ceramics, believes that although some companies are currently closed, they cannot be said to be due to the current status quo of the market. After all, there are many corporate failures, and every industry has a certain elimination rate every year. . No matter how good the market is, if the supply of funds is not enough, companies will fail. The companies that have been cleaned by the industry are those companies that have not really integrated into the industry, such as some roasted rice manufacturers, because they lack the core competitiveness. As in the early years, a ceramics company called Nicholas was closed in a few months. If a company wants to survive in the fierce market competition, it must form its own core competitiveness, organically connect all aspects of funds, products, talents, customers, etc., in order to get consumers and get dealers' approval. In the downturn, companies must learn to tighten their strategies and stay steady.

In terms of external exports, anti-dumping has already become a foregone conclusion. Yao Zhengshun introduced that some foreign trade companies are currently undergoing transformation, and some of them have even started to transform into restaurant catering business.

Which companies can buck the trend?

While the sales of products of some companies with low reputations have fallen sharply, the sales volume of some famous companies in the industry, such as Hongyu Ceramics, Xinzhu Ceramics, and Xinzhongyuan Ceramics, have increased a lot compared to the same period of last year. According to experts in the industry, Hongyu Ceramics has been in a state of insufficiency in supply of products this year, and some dealers are not sure to get the goods even if they pay 2 months in advance. The New Pearl Ceramics still maintains two compared to the same period of last year. The strong growth in the number of digits.

Li Chongguang, deputy general manager of New Pearl Ceramics, believes that the reason why New Pearl Ceramics can maintain stable growth in the adverse market is mainly dependent on four points: 1. The new Pearl Ceramics Group formed a variety of strengths and achieved comprehensive outbreaks in the market downturn. 2. Long-term and stable product quality, strong supply capacity form a good market reputation to stimulate the market; 3. Perfect channel network plays a good role in the adjustment; 4. The corporate culture with integrity as the main line forcibly crushes the stronger corporate spirit and makes New Pearl and its partners face difficulties.

Therefore, Jiuzheng Building Materials Xiaobian believes that those companies with strong brand influence, high quality, low price, various products, and excellent service will break through in the crisis.

In fact, the market itself is not good or bad. Relative to good and bad. It should be said that the previous market was super good, but at present it is generally good. Over the years, the ceramic sanitary ware industry has been growing at a rapid rate, growing at an annual rate of 20% or 30%. However, in fact, for foreign countries, China’s annual economic growth of 8% has been very remarkable. Therefore, domestic ceramic sanitary ware companies do not need to worry too much in the face of the current situation, but they must do everything they can to prepare for hardships.