Sanitary Dealer Talks: How to Deal with "Overcapacity"

With the intensification of market competition, many companies have been blooming, building sanitary products have long been oversupply, sanitary companies are facing a crisis, but this year's sluggish market situation has many industry insiders often talk about this topic. Browse the recent ceramic sanitary industry news, often can see a certain ceramic industry base to increase the number of production lines or the new production line of a certain ceramic fire ignition news. One side is a lukewarm market, while the other is the rapid expansion of production capacity. The Taowei companies that are in the “cold winter” of the market should actively change to face the market with overcapacity.

Overcapacity is a necessary stage in the development of the industry. Du Gao bathroom general manager Tang Yudong, like other industries in China, ceramic industry overcapacity is not a new topic, in addition to some companies have their own long-term, systematic strategic objectives, most companies are Blindly following the trend, blindly building production lines, and blindly increasing product inventories will inevitably make the depressed market indigestion and eventually lead to vicious competition in the market and a price war. Excessive production capacity also causes serious waste of resources to the society and brings unnecessary pollution to the environment.

Overcapacity is an inevitable stage for the natural development of the industry. Its arrival will speed up the reshuffle of the ceramics industry, promote the integration of industry resources, and ultimately make the ceramic industry develop in a standardized, orderly, healthy and stable manner. Of course, if this process has a government, Or guidance from associations and other related departments is even better. It can minimize the wasted social resources in the industry's reshuffle process, minimize the time required for the industry's reshuffle, and eventually achieve a "healthy shuffle."

The hardware and bathroom industry temporarily did not feel excess capacity. After all, it is not as mature as the ceramics industry. There is still a lot of room for development in the market. However, like the ceramic industry, it is bound to experience the stage of overcapacity. Therefore, we should prepare in advance. , To create a corporate brand, increase the added value of the product, thereby enhancing the competitiveness of the product in the market, eventually finding a foothold in the market when the overcapacity period arrives.

Enterprises need to attach importance to improving the value-added products Shen Renfeng, general manager of Foshan Nica Building Materials Co., Ltd. In recent years, many ceramic industrial bases have been built across the country. However, the market's demand has not kept up with the increase in production capacity, making the ceramic market crowded and overcapacity. , excess investment. The increase in raw material prices and labor shortages have caused continuous increase in production and operating costs. To cope with the unfavorable situation, many companies have simply increased production capacity to achieve economies of scale to reduce costs, and have not considered increasing R&D or innovation to increase the added value of products. .

Overcapacity has made the homogenization of products even more serious and the price war has followed. Many companies produce the same products and can only face the same market. The same customers do not have differentiated operations. The competition is naturally fierce. Ceramic companies only continue to innovate, so that products meet the needs of all types of people, build brands to increase product added value, so that products sold in different market channels, the formation of sales diversion, in order to make the company a virtuous circle of development.

The overcapacity in the sanitary ware industry does not affect the overall development. The marketing director of Aubell sanitary ware, Lin Ruijie, has launched a large number of production lines quickly in many emerging production areas, which will undoubtedly intensify the competition among enterprises. However, if there is no excess capacity, it will not be called a market economy. Only when there is surplus will it be eliminated and only progress will be made. The sanitary ware industry is a completely marketized industry. The internal profits and losses of the company are borne by itself. The company will evaluate the production capacity according to its own product positioning and conduct a healthy competition. Therefore, I think that there is a sign of excess capacity in the sanitary ware industry, which will not affect the overall development. If the strength of individual companies has not been increased correspondingly, simply by expanding the scale of production to reduce costs, it is bound to cut prices and stimulate the competition in the sanitary ware market.

In the face of this reality, the brand building and marketing innovation of sanitary ware companies are particularly important.

Ceramic sanitary market competition is certainly more and more fierce. Sanitary companies want to improve their competitiveness. First of all, it is necessary to improve the product's cost-effectiveness, and the most cost-effective is the most important competitiveness. Sanitary companies need to find ways to reduce production costs and ensure product quality. This requires companies to optimize their internal management and reduce the waste of resources and raw materials from within, in order to meet the needs of the market. Second, the grade of products needs to be continuously improved. The improvement of product quality should be faster than the increase in consumer purchasing power, so that the company can maintain its brand advantage and lead the trend; again, aiming at the current phenomenon of the major purchase groups in the market after 80s, and the design and personality aspects of product innovation. The design is more important than the importance of meeting the aesthetic needs of these people. At the same time, we can specifically study the consumer needs of some segments of the population.

The impact of overcapacity on small and medium-sized enterprises (SMEs) Qiu Aibin, manager of the Thai market department, is currently overcapacity. The large enterprises have strong foundations, improved channels, and strong brand appeal. They can survive in unfavorable market conditions. The small profits of small and medium-sized sanitary ware companies were not high. Overcapacity, coupled with rising raw material prices in recent years, could not guarantee profits, and the product backlog was severe. Some companies had to stop running some of their production lines.

According to the development of the industry, the situation of overcapacity is becoming more and more serious. Ceramic sanitary ware companies should carry out long-term business strategy planning to avoid sacrificing the quality of “short-sighted” behavior that impacts sales at low prices; enhancing corporate marketing planning and Operational, strict control of operating expenses, and integration of resources. In the off-season, enterprises with serious stockpiles should properly stop running some production lines according to the actual situation, and wait for the sales season. I believe there is a real rigid demand. As long as the products are well prepared, no matter how the market environment changes, they can eventually survive and develop.

Tao enterprises need to take the road of branding. Wang Wenli, manager of the sales department of Hongbo Ceramics Co., Ltd. At present, the emerging ceramic companies in the industry have gradually had a certain “climate”. This is not good news for the entire ceramic industry. This year, under the circumstances that the overall environment is not ideal, the rise of emerging production areas will further reshuffle the industry, which will put more SMEs under greater pressure to survive. Overcapacity is extremely serious in Zibo. Although the overall output of Zibo Ceramics is comparable to last year, many companies have serious stockpiles, and many companies have to close some production lines.

The formation of emerging production areas has played a “two-sided” role for Zibo’s ceramic production areas. On the one hand, Zibo’s product radiation scope has gradually narrowed, resulting in the loss of many customers; on the other hand, Zibo’s ceramic companies have been recognized. To their own crisis, they had to shape the brand image, build their own well-known brands, and shape the brand image in the eyes of consumers.

According to the development trend of the current pottery industry, it is expected that after 3 to 5 years, there will be fewer and fewer ceramic companies, and the market for OEMs will be even more arduous. The development direction of the ceramic industry will be the same as that of the home appliance industry. The enterprise survives and develops.

The Tao Enterprise should take a rational view of the current situation The deputy general manager of Jingdezhen Wright Ceramics Co., Ltd. Zhu Zhaoyuan's newly emerging production area is constructing a large number of production lines in a disorderly and rapid manner. It is a means for the local government to achieve political achievements. Only Jiangxi Province has Gao'an, Jingdezhen, Pingxiang, and Feng. Several ceramic bases in the city, the distribution of the ceramic industry is already very dense. The national real estate policy controls, inflation of prices and other factors, leading to serious overcapacity in the building ceramics industry.

Capacity is a guarantee for the survival of a company. If there is an imbalance between production and sales, it will bring tremendous pressure to the company, but it is also a driving force. Because of the increase in inventory and the increase in the cost of raw material purchases, enterprises have to think of ways to get out of the woods. As a production-oriented enterprise, we must strengthen product development, technological innovation, increase brand value, improve the quality of terminal after-sales service, and build a combat service team. Ebb Tide, a powerful company, a brand-conscious company, and a visionary company can survive in an unfavorable environment.

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