There are many pitfalls. How can small and medium-sized ceramic enterprises break through?

Since the beginning of this year, the continuous control of real estate and its “aftereffects” have caused the ceramic tile market to slump. Before the 2014 academic annual meeting of China Ceramic Society’s Ceramic Sanitary Building Ceramics Professional Committee’s 2014 annual meeting, Secretary General of the China Building Sanitary Ceramics Association, Sui Bin, described the overall situation of the ceramic industry in the first half of 2014: “The output is still growing. However, the overall environment is not optimistic. Production growth is within 5%, while sales have fallen by nearly 10%.

Dr. Yin Hong, a well-known scholar in the industry, analyzed that this indicates that the company’s product inventories have increased significantly in the first half of this year, which means that the ceramic tile industry in the third quarter is likely to have a large area of ​​self-adjustment of the kiln shutdown. A new round of shuffles appeared in the area."

Subsequently, in Guangdong, Foshan, Henan Neihuang, Jiangxi Gao'an, Hunan Yueyang, and other major production areas, respectively, the company reported that the company was forced to suspend production because of capital chain breaks.

In fact, for the data that "sales fell by nearly 10%," representatives from various companies think this is an overly optimistic data. "Dealer feedback, last year, sales this year fell by nearly half." A Tao enterprise sales representative told reporters. He believes that "sales fell by 30%" or closer to the actual situation in the industry.

As a result, under the dual pressure of sales pressure and environmental protection and rectification, a large area of ​​kiln rectification has begun to appear in all producing areas. Coupled with continued declines in real estate, rising raw material prices, and difficulties in financing for SMEs, more and more companies in the industry have a more pessimistic view of the future: “The gold nine silver and ten” that were previously expected in the off-season may not be available this year. For the company to bring about improvement, whether the market can warm up next year is still unknown."

Under such circumstances, large-scale ceramic enterprises may rely on brand influence, or rely on channels, or rely on cost advantages to withstand pressure and even develop. However, for many small and medium-sized enterprises that have not yet formed a brand advantage in the industry, every market changes, monetary tightening is difficult, and if they do not pay attention, they will fall into the crisis of breaking the capital chain.

At the same time, SMEs also ushered in opportunities for development at the same time - the development of urbanization. Han Tao, director of ceramics marketing at Says State, believes that the guidance of national policies can lead to a large market, such as small and medium-sized home appliance companies that once used the opportunity of “home appliances to the countryside”, but it is worth noting that the one that emerged from then on The phenomenon of collective failure of small, medium, and large enterprises in the near future should also be alarmed. “Urbanization brings at least ten years of development opportunities to ceramic companies, but at the same time it must also be considered. When it comes to making profits and making money, brand building and future development How to do it?"

There are many pitfalls. How can small and medium-sized ceramic enterprises break through?

View of the status quo: capital is king

"The era of irritability is gone forever." Fang Chengjie, vice president of marketing at Foshan Weige Ceramic Tile Co., Ltd., said in an interview that the industry may really enter the reshuffle stage this year.

The news of closures and closures in prolific businesses is tantamount to deepening people’s panic. However, in Fang Chengjie's opinion, although it is no longer "hot," the domestic market is still better than Europe and the United States. “The problem of unreasonable industrial layout has led to panic in the industry, but the fact that the real estate industry 'goes to bubble' means that the government is trying to revitalize actual demand instead of creating inflationary illusions by printing money to increase inflationary pressure.” He stressed that this moment is not a panicking period.

However, in the current domestic economy continues to decline, the overall decline in ceramic tile sales is an indisputable fact. In the ever-increasing competition, a number of companies have been forced to suspend production due to the disruption of the capital chain. Industry experts have warned that enterprises in the ceramics industry where small and medium-sized private enterprises are highly concentrated must also be vigilant about the issue of the capital chain.

As we all know, ceramic companies are mostly in debt operations, monetary tightening, SMEs have repeatedly increased difficulty. "Only 300,000 people have been given me, what's the use? The wages of the workers are not enough." The head of a mosaic factory recently complained to reporters, saying that especially since this year, he was deeply puzzled by the fact that the company's ** was too difficult.

According to Mr. Han, a ceramics marketing director of a ceramics company, the financing difficulties of small and micro enterprises are even the most critical problem encountered in the current industry development: the ceramic industry has excess capacity and has been questioned by the “three highs,” in the eyes of banks and other institutions. It is not a good investment direction.

From the January to July this year, the number of domestic orders for presses fell by more than 20% year-on-year, which shows that the new investment of the industry has declined. Mr. Han thinks this is a "wise move" and "industry development is in a period of adjustment." He feels that in this sensitive period, especially for small and medium-sized enterprises, sales pressure is increasing, and there is a lack of channels. The normal operation of the normal capital chain should avoid irrational investment behavior. He quipped, "It's safer to keep your money in your pocket."

Positive attitude: survival is the hard truth, positioning is fundamental

“This market is like a melting pot, whether it is slag or fine iron, one more and one less, and it has no significant impact on the entire market.” Well-meaning company chairman Ji Xuesong laments that in the current market environment, For enterprises, survival is the hard truth.

Bao Jiejun, chairman of the EU-Shenzhen-based ceramics, once mentioned in a public speech that “small businesses do not talk about the general trend,” saying that in the face of the general trend of the country, companies are unable to shake their slightest, and a more sensible approach is to do well.

Ji Xuesong cited it as a classic and shared with reporters similar stories he had read: Two people met a bear in the forest. Instead of thinking about how to fight a bear, it was better to think about how to run faster. "Running your opponent, you are a little further away from 'Bear' and it will not be the one that is eliminated."

Exist, then work hard. This is the experience that Ji Xuesong has been doing business for many years.

Yin Hong, deputy secretary-general of the China Building Sanitary Ceramics Association, pointed out that companies want to base themselves on the market, have three choices, or brand, or carry out technological innovation, or build new technologies and new equipment (such as roller kilns, continuous ball mills, etc.) Cost advantage.

Technological innovation and cost advantages need to be built on a solid foundation of funds. However, for most SMEs, this is exactly where they are weak. Therefore, most companies still face the realization of “small” awareness.

Some industry insiders pointed out that many SMEs blame macro-control and blame the financial storm when they fail, but this is not the main factor. 80% of the factors are actually no independent brands and no core competitiveness. The first one is thrown away when it encounters problems. In fact, the only way to change this type of SME's problems is to close down or go bankrupt. The only way is to create its own brand.

"Small businesses must also strengthen their position." The above person said.

In this regard, it is well-intentioned that the company's approach is: What resources are there around and what can be done, just do it well. Ji Xuesong believes that it is not necessary to devote resources around him. It is a big circle to look for so-called high-spirited and unwise. "Small businesses make products that must not drift, because they can't play or play." He said that whether it is a company's positioning or brand, product positioning, we must do to meet the actual situation of the enterprise.