■ Reporter Tao Lulu
Recently, there have been successively production lines of ceramic companies in Shandong, Fujian and Jiangxi, which may be shut down or transformed. The rapid changes in industry enterprises make industry insiders sigh. Since the Evergrande incident broke out, the continued downturn in the real estate market and the impact of the epidemic, Jiantao Sanitary Ware companies have undergone a major reshuffle in 2021, with nearly 10,000 small companies going bankrupt, and the profits of leading companies have also been seriously damaged. Some industry insiders pointed out that the ups and downs of industry enterprises have always been there, but it has been difficult in the past two years, and the industry reshuffle is accelerating.
may be eliminated or transformed. It may not be a bad thing for ceramic companies.
reporters obtained such a set of data from the Shandong Ceramics Association. As of August this year, Shandong Province has 76 construction ceramics production enterprises and 124 production lines. Among them, there are 120 ceramic tiles and production lines, with a total daily production capacity of 2.6172 million square meters; 4 ceramic tile production lines, with a total daily production capacity of 900,000 pieces. In 2020, two years ago, Shandong had 82 ceramic construction manufacturers and 144 production lines. Among them, there are 143 ceramic tile production lines with a daily production capacity of 2.4786 million square meters; there is 1 ceramic tile production line with a daily production capacity of 180,000 pieces.
"Through data comparison and analysis, in the past two years, the number of Shandong ceramic construction enterprises and production lines has been reduced again, and a number of low-efficiency backward production lines have been eliminated again; but on the other hand, ceramic enterprises have greatly improved production efficiency through demolishing old and building new, technical transformation, etc., and the province's tiles production capacity has increased instead of reducing. It shows that in the past two years, the efforts to upgrade Shandong ceramic enterprises have increased significantly." A person in charge of the management committee of industrial parks in Zibo, Shandong told reporters. He gave an example to illustrate that in terms of the structure of product , in the past two years, under the rapid iteration trend of building ceramic products, the number of Shandong porcelain tiles production lines has been greatly reduced, while emerging categories such as medium board and floor paving stone have grown rapidly. Overall, the product structure is becoming more diverse and the product categories are becoming more diverse.
Also in August, Fujian's industry data showed that there are currently 198 construction ceramic manufacturers in the province, with 393 production lines, a daily production capacity of tiles of 4.0496 million square meters, an annual production capacity of 1.255 billion square meters, and a daily production capacity of 1.15 million pieces of ceramic tile. In the past two years, the number of ceramic enterprises in Fujian has not changed much, but many enterprises have reduced production lines, so the number of production lines has decreased by 43, and the daily production capacity of ceramic tiles has decreased by 283,500 square meters.
In Gao'an production area, Jiangxi, in September, 7 ceramic tiles production lines of 4 ceramic companies were transformed into lithium slag blank projects. As of September 15, from January to September this year, 30 production lines of 14 ceramic companies including Gao'an Bode, Jingcheng, and Jinli have been withdrawn and transformed into lithium slag blank project. According to statistics, the 30 production lines of 14 ceramic companies that have transformed into lithium batteries, based on the 310-day production cycle , the total annual tiles production capacity is 130 million square meters, accounting for more than 13% of Gao'an Ceramics' annual production capacity. Local companies also believe that in the current environment, production line transformation may make a living.
Do segmentation and market development. Brand building surpasses the product itself.
After recent years of development, my country's ceramic companies have made great progress in production scale, new products and new technologies. It is no exaggeration to say, "We have new products abroad, and we have new products that are not abroad." However, in the process of the ceramic industry moving from "Made in China" to "Creation in China", its original and revolutionary innovative achievements and innovative products still seem a little rare.
Take Zibo, Shandong, which was once known as the capital of Jiangbei. Due to the lack of its own brand, many local companies have been doing OEM for leading ceramic companies. When the market is in good condition, they naturally make a lot of money. In recent years, the market has weakened, so local companies naturally cannot continue. This has also made more and more companies realize that "brands are extremely important intangible assets for companies." In the current market environment, the performance of first-tier brand companies is significantly better than that of second- and third-tier brands, and their revenue and profit growth are basically presented in the steps of first-tier brands, second- and third-tier brands, and third- and fourth-tier brands.
"I only know who is swimming naked when the tide is low." In the market downturn, the value of the brand is becoming more and more valuable. Brands are becoming a watershed in the differentiation of the industry. One needs to survive and the other needs to develop.One is looking for factories everywhere to buy OEM, while the other can only produce OEM. An indisputable fact is that with the continuous increase in industry maturity and concentration, the difficulty of building a brand is becoming increasingly greater and the cost is becoming increasingly high. After more than 30 years of development, the
industry has long entered a mature stage, and the top brands, waist brands, tail brands, etc. have long been in their positions. Among countless trademarks and brands, only a very small number of brands stand out, become first-tier brands in the industry, and are widely recognized by the market and consumers; more brands are classified as second- and third-tier or even low-end brands, and it is almost difficult to have the opportunity to advance, and there are fewer and fewer "dark horses" of brands.
In fact, " Matthew effect " will further solidify the array of top brands. The market shows that the strong are getting stronger and the weak are getting out. Early first-tier brands were more likely to obtain a large amount of market resources because they were recognized by consumers. Suppliers, dealers, and partners are more willing to choose excellent first-tier brands in the industry to obtain more stable returns, while low-end brands can only rely on low quality and low prices to attract consumers, and will be eliminated if they are not careful.
The increasingly fierce market competition has made companies realize that only by creating their own brand, doing detailed and refined products in a certain category, or even becoming a single champion can they have long-term development. At an industry meeting, Yang Junzhi, the relevant person in charge of Jianyi Group, expressed this view.
The external environment has undergone profound changes. When one encounters an innovation ceiling, it has become unrealistic to establish the brand's position in the market by relying solely on an innovative product leading the industry. The status of brands is also undergoing violent fluctuations. Many former first-tier brands have long disappeared, while a group of strong new brands are constantly advancing with aggressive momentum.
Ceramic rock slab Tao Lulu/Photo provided
At the same time, the rapid development of mobile Internet and the influx of information have allowed the brand's value to be continuously diluted and differentiated. Young consumer groups are more willing to focus on those personalized and professional niche brands. Secretary-General of Foshan Ceramics Association Yin Hong believes that "only by constantly maintaining innovation and activity, can the brand maintain its status and influence in the industry." Behind the brand is not only the product, but also its positioning, channels, R&D and innovation, promotion and packaging, etc. Brand construction has long surpassed the product itself and turned into a powerful system project.
This article was originally published in the 7th edition of China Building Materials News on October 17,
Editor: Hexinlong
Proofreading: Hexinlong
Supervision and Review: Hedan
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