Wen/Zencan
Although life under the COVID-19 epidemic is difficult, it still feels like time flies by. The "What to watch last week" that started on March 2 has reached the fifth issue in the blink of an eye (it was actually supposed to be published on Monday). "Last Week's Highlights" has been postponed to today). This means that March has become a thing of the past, leaving one month less time for the ceramics industry and ceramics companies affected by the epidemic to buck the trend and complete their annual goals!
Since time is of the essence, let’s stop talking and let everyone follow Brother Chan to review the recent hot events in the ceramic industry.
一
The terminal market is surging
Since 2020, affected by the COVID-19 epidemic, almost all walks of life have experienced a bad start, and the building materials and home furnishing industries including ceramics are no exception. Recently, the terminal market of the building materials and home furnishing industry has been turbulent, and many major events have occurred: the first branch of Juranzhi in Changsha will be closed due to serious losses; the Red Star Macalline Taiyuan Changfeng Street store was closed down by the fire department in accordance with the law due to serious safety hazards. During the period of confiscation, they were operating privately; a building materials store in Xi'an increased rent, causing more than 160 merchants, including ceramic tile dealers, to collectively close their doors and go on strike; Jinan Jinniu Building Materials Market demolition and reconstruction project started, and a large number of ceramic tile dealers had to face the problem of where to go with their stores... …
Jinan Jinniu Building Materials Market Demolition and Reconstruction Project
There is a lot of discussion online around the rent increase at a building materials store in Xi'an.
"It's too late to wait for the old hen to lay eggs, so just kill the chicken and eat one meal!"
"The food looks so ugly. Although we are not from that market, we can't stand it. To be honest, without these merchants, would the market be what it is today? Mutual benefit can lead to a win-win situation."o;
"The country has strongly called for rent reduction and exemption, and some building materials and home furnishing stores have also actively implemented rent reduction and exemption. At this time, raising rent is really taking advantage of the situation!"
"Nothing can be taken too far. It will not be easy for both sides. It is better to negotiate amicably and work together to overcome the difficulties."
"Everyone should think of ways to do Douyin and WeChat business, and leave the shops to landlords, or build warehouses + sales. Stores can no longer operate!"
"The free rent is a lie. It has actually increased by 20%. Increase it! It has been passed on to consumers to pay the bill. Do you still go to a shopping mall like this?"
……
In response to the current difficult situation in the terminal market, Zhongtaojun also interviewed relevant personnel through WeChat.
Ge Liju, Marketing Director of Xuzhou Shenghui International Juran Plaza reported, “It’s not so bad here anyway, but some of them are pretty good. All brands reported that the recovery speed after resumption of work was better than they expected, especially on weekends. This may be because we are targeting hardcover, large-bag and other channels. However, the epidemic has accelerated the exposure of problems of various brands. The impact is more long-term.”
Li Xuezhi, Huida Housing Marketing Director believes, “Everyone is suffering, and those who can’t stand it will collapse. In fact, the reform of the overall model is required. ! Every change is actually foreshadowed. The ceramic industry has already emerged, but the terminal is a little slower. Now under the epidemic, it seems to be faster. The changes in dealers and terminal stores are actually the response of consumers."
Melco Marble Tile Yantai & Weihai Distributor Huang Huangshui said, "I just withdrew from Red Star. Now, building materials like those in the harbor The market has basically been demolished, and the rental costs of the remaining hypermarkets are high. After working in the ceramic tile industry for so many years, it has become apparent that the door-to-door retail business is really pitiful in the past few years. There are actually only one or two brands that are still doing business in the stores. It's profitable, and the rest is just struggling. Since I rented this building in 2018, I have started to integrate home furnishings and charge the partners inside.Very low rent because I never wanted to make money collecting rent. It is equivalent to providing a platform for all categories, and everyone integrates resources to bring orders to each other."
[Zhongtaojun Comments] Brother Chan believes that the current turmoil in the terminal market of the building materials and home furnishing industry is of course closely related to the epidemic, but Looking at the root cause, the fundamental reason is consumption upgrading and channel fission. The epidemic is only a catalyst. Even if the epidemic does not occur, many building materials and home furnishing stores and building materials dealers will be eliminated. For ceramic enterprises and ceramic tile dealers, although the current publicity function of online sales activities such as live broadcast sales is greater than the sales effect, the actual effect is not ideal, but in any case, online and offline integrated marketing is the general trend. Therefore, we might as well make a bold prediction: More and more dealers of ceramic tiles and other building materials will follow the already existing trend of significant reduction in terminal store area and increase online and offline sales. Coordinate and integrate marketing practices to reduce dependence on building materials and home furnishing stores, thereby reducing operating costs and risks; in this case, the leading building materials and home furnishing stores can also actively develop into "commercial complexes" by virtue of their favorable location and strong strength Transformation, and those building materials and home furnishing stores that lack strength can only be eliminated.
二
Jiangxi Construction Ceramics News spreads frequently
Under the epidemic situation, whether we look at the ceramic industry from the manufacturer level or the terminal level, it can be said that the situation is not good. However, the Jiangxi production area has "uniquely beautiful scenery" - "Gao'an Ceramics' competition has produced a report card: 100% resumption of work, catching up with Foshan in 3-5 years", "Six ceramic companies have revenue exceeding 1 billion, and one A batch of strong enterprises have achieved breakthrough development", "'Crazy' expansion of production: 12 new lines will be added in 2020, and 18 lines will be renovated and rebuilt", "17 ceramic companies in Gao'an have paid taxes exceeding 10 million yuan, with the highest tax exceeding 100 million yuan" (details See Ceramic Information》Related articles recently published by the newspaper) have attracted widespread attention in the industry.
Jiangxi Ceramics Industry Base
Does this mean that Jiangxi Jiantao can really surpass Foshan and even the entire Guangdong production area within 3-5 years? In this regard, industry insiders have relatively consistent views.
"Gao'an still has a long way to go compared with Foshan. The output is almost second in the country, but there is no brand that ranks second in the country. It's more about price for volume. The Gao'an brand, the brand Gao'an, and the long way to go It’s a long road ahead!”, “Gao’an ceramic enterprises have no innovation ability and no brand awareness. They follow the trend and follow the general trend, which leads to serious product homogeneity. Various companies compete to imitate. In the past two years, they have even built large kilns and raised the price. The purpose of production capacity is to reduce costs, but ignore quality. How far can it go? " This is a comment made by two industry insiders on WeChat and Toutiao.
"In the past, Zibo could not replace Foshan as the leader, and neither could Gao'an. Moreover, the pollution in the Gao'an production area had been criticized. So what should we do to surpass Foshan? Comparing output value? It is meaningless. Why is Foshan so popular in the industry? Such high status is never measured by output value. You can ask Jiancer Aircraft Carrier New Pearl where the leading companies are. They will set up a production base in Jiangxi, but the headquarters will be there. Are you moving here from Nanzhuang? There are several large-scale ceramic companies in Gao'an, but I can't think of any brands they have. Any second-tier brand in Foshan is more famous than them, let alone Dongpeng and Oushen. "Compared with big brands such as Novo." This is the view of an industry insider who was interviewed anonymously by Zhongtaojun.
"Similar to 'Gao'an Ceramics catching up with Foshan' has been mentioned more than once, and more than one production area has this idea. However, China's first-class architectural ceramics brands, products, talents, channels, marketing, management, Services, the strongest internal and external capital, scientific research strength, equipment and technology, logistics, supporting facilities, etc. are all created and controlled by the Guangdong production area and even the Foshan production area. It is not without reason that Foshan ceramic tiles are well-known throughout the country. With the support of ecological system, it is impossible to achieve a great enterprise by just fighting for the price. Why do the leaders of Gao'an call on the Gao'an production area to pursue the development ideas of "green, high-end, brand, and intelligence"? guide, and theseIt cannot be solved in 3-5 years, nor can it be solved by the government. This is exactly the problem. Of course, Gao'an production areas have their own advantages, which is the strong support of the local government. Constant self-improvement and striving for the top are fine traditions of the Chinese nation, and the confidence and ideas to catch up with the Foshan production area deserve recognition. We still have to have dreams, what if they come true? ”This is the opinion of Huang Xunlong, a professional in the industry.
[Zhongtaojun Comments] Brother Chan believes that it will be a matter of time for the Jiangxi production area to surpass Foshan and even the entire Guangdong production area - - The transcendence mentioned here is only in terms of output. In fact, the output of Jiangxi production areas has surpassed Foshan production areas - However, in terms of brand, talents, marketing, services, especially the entire industrial chain, Jiangxi production areas basically It is unlikely to surpass the Foshan production area, at least there is no such hope at present. There are so many architectural ceramic production areas across the country, and the actual situation in each production area is different. Each has its own advantages and disadvantages. Now that the building ceramics industry has developed so far, as the capital of ceramic brands, the economic center of ceramic headquarters and the ceramic industry chain cluster, there is no need to risk hidden risks in environmental protection, manpower and other factors to reverse history. Recovery has long been out of the question. For Jiangxi production areas that have their own unique advantages in production, labor, and logistics (mainly Gao'an), building terminal brands has missed the best opportunity Opportunities and conditions are obviously not enough to build an industrial chain cluster, but it is the right time to build a manufacturing brand for ceramic enterprises and the entire production area, and it has already achieved initial results.
三
The export situation is not good
From a global perspective, the epidemic has taken a turn for the worse since mid-March. While the epidemic in China has been gradually brought under control, epidemics have broken out in various countries around the world. As the global epidemic becomes increasingly severe, many countries have closed border ports and terminals, including the ceramic industry.All walks of life are trapped in difficulties such as foreign trade orders being canceled or postponed, layoffs, and holidays. The United States has even levied anti-dumping and countervailing duties of more than 250% on Chinese bathroom cabinets and cabinets.
Picture source: Tuchong Creative
In this regard, netizens are all talking about it and have different opinions.
"China has a huge consumer market of 1.4 billion people. All exports are sold domestically. What are we afraid of?"
"The domestic competition in the ceramic industry is already too fierce. It is too difficult for ceramic companies that focus on foreign trade to switch to domestic sales! We can only hope that the epidemic will pass soon!"
"Now the overseas stores of Nike and Adidas, the foreign sports brand giants, have announced the closure. Our company, Nike, has withdrawn more than 70% of its orders, and is preparing to start layoffs this month. All industries are similar in the general environment. If you hear Companies in any industry that focus on overseas markets are starting to lay off employees, so there’s no need to make a fuss.”
"Based on the current situation, it is indeed necessary for the country to provide epidemic subsidies to the people to stimulate the expansion of domestic consumption."
"If foreign trade orders are canceled, liquidated damages must be paid. The spirit of the contract must be maintained. Foreign trade companies must have some backbone, and they are always led by others. The market is still there even if the orders are gone. The epidemic is both a crisis and an opportunity."
"Now if China exports large quantities of medical supplies such as masks, goggles, protective clothing, and disinfectants to the United States, the United States may conduct anti-dumping investigations on these goods afterwards. What can't shameless people do?"
"Some patriots say they would rather eat grass than kill the United States. The time has come to fulfill their promise!"
……
Zhongtaojun communicated with some people in the industry on this topic. For example, Wang Shanshan, Brand Manager of Gold Medal Bathroom Marketing Department reported, “Personally, I think that frustration in export business is something that the industry will face sooner or later. Even if it doesn’t happen, Impact of the epidemic, China’s production costs,The advantage of low labor costs will gradually be lost, competitiveness will continue to decline, and sooner or later the pain of transformation will have to be faced. The epidemic has only made this process happen earlier and more intensely. In fact, the domestic market is the same, and no one can escape the globalized economy.
[Zhongtaojun Comments] Regarding this topic, Brother Chan really wants to say something cheerful: "Don't panic, everyone, keep the original Let’s change the production line to a mask production line. If we make masks for export, Waiguoren will rush for them, and we will gain both fame and fortune!” However, with the development of the times,the world is a global village, and human beings are We are a community with a shared future. No country can survive the epidemic alone. The dust of the epidemic will fall on everyone. The export of China's ceramic industry has been frustrated, and the same is true for foreign countries. This year, we just want to survive. Nothing else matters. It’s the same for individuals and businesses.
四
Shanghai Kitchen and Bathroom Exhibition will be held as scheduled
Since the outbreak of the epidemic, news about the postponement of exhibitions in various industries has come one after another. For example, the ceramic industry has announced the postponement of exhibitions such as Foshan Ceramics Expo, Tanzhou Ceramics Exhibition, and Guangzhou Ceramics Industry Exhibition.
Image source: Internet
However, there are exceptions. For example, the Shanghai Kitchen and Bathroom Exhibition is scheduled to be held as scheduled from June 2-5. For this reason, many bathroom associations in Zhongshan, Kaiping, Foshan, Xiamen, Heshan, Chengdu, Chaozhou, etc. have publicly written to Shanghai Global Exhibition Company, the organizer of the Shanghai Kitchen and Bathroom Exhibition, calling for the cancellation of the Shanghai Kitchen and Bathroom Exhibition planned to be held from June 2 to 5. Wei Zhan caused an uproar in the industry.
Industry media reacted strongly to this, either starting discussions in WeChat groups or publicly posting their opinions. Some people think that if these bathroom associations are worried about JuneThere are certain risks for its member units to hold the Shanghai Kitchen and Bathroom Exhibition from 2 to 5. They should communicate with the organizers privately instead of sending letters publicly. Some matters are better solved behind closed doors; some people think that these sanitary ware associations The motives for publicly sending a letter to the organizer of the Shanghai Kitchen and Bathroom Show are not pure. The underlying purpose is to guide public opinion, which is suspected of being a threat. Some people believe that the problem with the Shanghai Kitchen and Bathroom Show is not whether it will be postponed, but that it did not consider participating in the exhibition during the epidemic. Due to the difficulties of the enterprise, the company took the initiative to lower the booth price, but in this difficult period, it fully demanded payment or did not refund...
Zhongtaojun also learned about the views of some ceramic enterprise personnel through interviews. Li Xuezhi, Huida Housing Marketing Director said, "Looking at the seriousness of the international epidemic, it is probably better to postpone it. Just now (March 28) (morning) meeting, the boss’s opinion may be postponed, but we are at the grassroots level and do the preparations first, so we are ready”; Huang Guoli, Brand Promotion Manager of Wrigley Sanitary Ware said, "The association has asked us for our opinion before, and we all agree that we hope to postpone it. But how effective can our appeal be? If there are not many companies participating, the appeal is still useful."
An industry insider who did not want to be named said with concern, "It is done with such great fanfare. It will be more embarrassing if the exhibition is not canceled! However, this wave of operations can indeed win the favor of enterprises."
[Zhongtaojun Comments] Brother Chan believes that based on China’s current epidemic control situation, it will be held as scheduled from June 2-5 The Shanghai Kitchen and Bathroom Show doesn’t seem to be a problem. But don’t forget that the Shanghai Kitchen and Bathroom Exhibition is an international exhibition. Only foreigners participating can be called an international exhibition. The current situation of foreign epidemics is extremely severe. It is hard to say whether it can be controlled in June. Although the domestic epidemic has been brought under control, it is still far away from the true safety stage. Even the two sessions have been postponed, and even the Olympic Games have been postponed. Can the Shanghai Kitchen and Bathroom Exhibition be more cautious?
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Looking back on the hot topics of the week, I found that except for the good news about Jiangxi Jiantao, the rest was basically unfavorable news, which can’t help but make people feel sad.The feeling is heavy.
Today is April Fools' Day, April 1st. According to Baidu Encyclopedia, one of the origins of April Fool's Day is: "April Fool's Day" is a holiday of lies that first appeared after the religious revolution in the 15th century AD. At that time, King Philip II of Spain once established an "Inquisition". Anyone who was not a Catholic would be considered a heretic and would be sentenced to death on April 1 every year. The subjects felt very frightened, so they took pleasure in telling lies and making fun every day to dilute their fear and hatred of the ruler. Later, it was used for a long time and evolved into today's "April Fool's Day".
In view of the significance of this origin, we ceramic people might as well temporarily forget the painful reality and find a little happiness of our own during this special festival. Click on the video below and join Zhongtao Jun to become a happy brick mover!
