Is the accumulation of sanitary products overcapacity or market sluggish sales?

First of all, let's look at a set of data. The excess capacity in the sanitary ware industry may reach 60 million. From January 2000 to September 2010, nearly 70 million new urban housing units were built in China, and farmers built more than 9,000 new housing units each year. Ten thousand households. From this, it is estimated that China will build about 7 million new urban housing units each year, and farmers will build 9 million households each year. If urban housing is built with 2 toilets per set, and farmers build houses based on 2 toilets for each household (in fact, less than 50% use flush ceramic toilets), China's annual market demand for toilets should be 32 million. From the perspective of the investigation of various industrial bases, the capacity of Chinese ceramic flush toilets has exceeded 120 million each year. The actual output is over 65 million and exports are about 30 million. If domestic sales are calculated at 32 million, Chinese manufacturers will annually The inventory of 3 million, the industry's excess capacity will reach 60 million.

The continuous development of the real estate industry has brought new business opportunities to the building materials industry. The continuous increase in people's consumer demand has brought a lot of profits to the sanitary ware industry. However, under the stimulation of market demand, the overcapacity of many sanitary ware companies is very serious. .

This algorithm, I believe that is one-sided, this algorithm ignores the need for bathroom in the renovation of some old houses in the process of the renovation of the old city, the demand for sanitary ware in the hotel and public places construction, the amount in the entire bathroom needs It occupies a very large proportion. Recently, when the author visited the Chaozhou Sanitary Ware Enterprise, they found that except for some companies that had accumulated serious product accumulation due to poor management, most of the companies reported that their products were in short supply this year. Why would such phenomenon happen?

Incentives caused by irrational management is a cause of overcapacity. I saw a warehouse in Chaozhou that was originally used to store sanitary products was already full, and some of them were piled in open spaces outside the factory. Stacked products were toilets, washbasins, and toilets. Toilets and so on. Some products are covered with a thick layer of yellow dust over a long period of time. At first glance, they look white and yellow, especially dazzling, and it can be seen that the company’s products are seriously stacked.

Why is there such a serious accumulation of products, the person in charge of the company is not willing to talk about it, but simply said that in recent years, due to deviations in the product positioning and business ideas, the resulting products have not been sold and accumulated.

The author was informed by many parties that the company has been engaged in sanitary ware production for more than a decade, mainly exporting and OEM. The export business was hot in the past few years, and many foreign orders were received. Other regions in the country came to request OEM production. There are many companies. The company originally had only one production line and the product was once severely strained. In order to alleviate the short supply of the product, a new production line was introduced, and a warehouse of nearly 1200 square meters was built to store the product.

Measures to move to the consumer market In this situation, the company decided to go to the domestic market to attack the mid-range market. However, due to the long-term neglect of the domestic market and the lack of understanding of the domestic market demand, after switching to the domestic market, the original production of export products is difficult to sell. Domestic new products also fail to meet consumers' requirements in terms of appearance and function. More and more products have accumulated and there has been a serious overcapacity.

Excessive capacity and sanitary products like this enterprise are also found in other domestic production areas. The reason for this may be the imbalance between investment and consumption, the asymmetry in supply and demand, and the impact of exports to domestic sales. But the most important thing is that The positioning of the company itself and the deviation of the business ideas are caused. It is understood that after the financial crisis, some small and medium-sized enterprises closed down due to unsustainable shocks and left behind a large number of products. These products have not been dealt with for a long period of time and have accumulated at the gate of the factory or on the roadside, exacerbating excess bathroom production. With the recovery of the market and the improvement in demand, many companies have gradually emerged a situation in which the supply of products falls short of demand. Therefore, the oversupply of the sanitary ware industry is still in short supply, and people in the industry also have their own opinions.

Focusing on branding For a long time, the advantages of Chinese ceramics enterprises have been concentrated on the market of medium and low-grade products. China has become the world’s largest producer and consumer of ceramic equipment. China’s ceramics account for 30% of the world’s total, and ceramic accessories also account for Nearly 35% of the world's total. Foreign brands have almost swept the Chinese high-end ceramics market, and took a variety of measures to grab market share.

At present, in China's ceramics industry, there are more than 3,000 local brands in addition to the international brands in the high-end market, of which 50-100 are large-scale ones. Others are small and medium-sized enterprises, which weakens the market competition of the entire domestic high-end brands. . With the US, Japan, and European brands robbing the country, the competition of high-end ceramics brands will become increasingly fierce. At present, although there are many domestic ceramic brands, no one company in the market has occupied 10% of the market share. The monopoly effect of big brands has not yet formed. The brand awareness of small and medium-sized ceramic enterprises began to strengthen, pay attention to the brand. Ceramic companies are beginning to focus on the development of branding.

At present, in the ceramic industry, resource integration has become a development need. The complementary advantages of professional ceramic product manufacturers also help to promote faster development of the industry. Cross-product resource integration is becoming a kind of ceramic industry. trend. The integration of resources in adjacent production areas can also make up for some deficiencies in the enterprise itself, complement each other, and make use of their respective advantages in the professional field. In the future, in the ceramic industry, the integration of resources across industries and the integration of resources within the industry will accelerate.