Analysis of China's Stone Market in 2010

At present, although the trend of the world economic situation is still unpredictable, a number of leading companies in the industry have taken precautions in terms of new products and new processes for R&D, transformation of marketing models, creation of national stone brands, and exploration of emerging markets. hair. Winter has arrived and spring is no longer far away.

For the Chinese stone companies above designated size with international trade and domestic high-end construction projects as the main source of orders, the 2009 recession index was presented in a large area, making it a difficult year for the development of the stone industry since the reform and opening up. . Among them, due to the impact of the global economic recession and the huge increase in costs of resources, environment, labor, etc., some companies started to work less than half. However, stone industry enterprises in China have enhanced their comprehensive competitiveness in the predicament, sought new market opportunities, and achieved overall improvement in industrial strength.

World economy downturn Stone industry encounters cold prophet

Since the beginning of 2008, the overall situation of China's stone industry has been relatively good, with rapid growth in production, a slowdown in growth rate, a downward trend in efficiency, and increased pressure on business operations. The financial tsunami triggered by the US subprime mortgage crisis has led to a global financial crisis.

The output value of stone in the three major stone distributing centers in Nan'an, Laizhou, and Yunfu both fell by more than 30% year-on-year. In addition, the impact of the world economic recession on the stone industry still has a certain hysteresis in conduction, and construction projects generally have a period of about one year from civil construction to decoration. Chinese stone companies will face the test of a true “winter.”

Adjusting business strategy in 2010 to extend market reach

After more than 20 years of low-cost development, China's stone industry has entered a stage of high-cost development with the changes in the world economic situation and the adjustment of relevant national policies. Accordingly, the adjustment of the business strategy, the renewal of ideas, and the accurate positioning of the market have become a top priority. Zou Chuansheng, president of China Stone Industry Association, pointed out at the report on the development of China's stone industry recently that market strategy is a problem that must be studied by all industries and enterprises first, and it is a guiding issue. At present, the stone industry must pay special attention to studying the changes in the domestic and foreign stone market, correctly handle the relationship between the international regional markets and the investment and consumer markets among the various regional markets, and implement a diversified market strategy.

First of all, under the unfavorable situation of the traditional export market of stone products, we must be good at grasping and expanding emerging market areas, such as the UAE, Saudi Arabia and other Middle East countries, as well as emerging markets such as Russia and Kazakhstan that have “awakened” in recent years. According to statistics, in 2007, China’s stone exports to Russia increased by 58.6% over the previous year, and stone exports to the three oil-producing countries in the United Arab Emirates, Saudi Arabia, and Qatar reached US$70.816 million, a rapid upward trend. Therefore, while continuing to pay attention to traditional markets such as Japan, the United States, South Korea, and the European Union, China's stone exports should focus on vigorously developing new emerging international markets.

Secondly, in the domestic market, we must continue to adapt to China's macroeconomic policies of insisting on expanding domestic demand, especially consumer demand, and promote economic growth from the main reliance on investment and export to the reliance on consumption, investment, and export coordination. Therefore, the stone industry's market must also shift from being mainly oriented toward engineering investment and exports to consumption (mainly home-based household consumption), and the consumer market should be the focus. From 2007 to the beginning of 2008, some large enterprises in Fujian and other places have started to expand their domestic markets. They have "sported" marketing branches and processing plants to the western and northern regions of China. They have initially shown large-scale stone materials. The guiding role of companies in predicting markets and resisting risks.

Again, China's economic development has shown a layout from south to north, from east to west. As a result, the traditional layout of the stone industry, which is weak in the south and weak in the north and weak in the east, is bound to change accordingly. The development of the Bohai Economic Zone, the revitalization of the old industrial base in northeastern China, and the implementation of the Western Development Strategy have caused concern in the stone industry. The abundant stone resources, relatively cheap labor resources, and potential huge market space in the Midwest have attracted a lot of attention. A large number of powerful companies invest in factories. Integrating mine resources, entering the Midwest, the Bohai Rim, and the Northeast China market has become a beautiful landscape of the stone industry in 2008.

Domestic demand promotes product upgrading

After more than 20 years of development, “everybody makes money”, the stone industry in China has rapidly grown into a world stone power. To a certain extent, it is supported by the “advantage” of the domestic labor force, land, stone resources, and low environmental protection costs. The innovation of R&D, branding, and business model is a phenomenon in which the “small, earthy, scattered, and chaotic” phenomenon in the entire industry is still serious. Small businesses that rely on buying wool boards and earning profits from processing are all alive. These companies often do not have the corresponding design capabilities and the level of communication and cooperation with decoration companies and builders. The company's operating mechanism and marketing network are also extremely imperfect and do not have the ability to withstand market risks. Therefore, under the adverse conditions of a large economic environment, these stone companies have been forced to close down or have been annexed, which has become an unavoidable reality.

The good news is that in the stone industry clusters such as Fujian Shuitou, Laizhou Shandong, and Yunfu Guangdong, the industry segmentation is relatively mature, and a large number of powerful large-scale stone companies have grown up. Most of these companies are export-oriented enterprises. They have earlier learned the marketing concept of the developed countries in the stone industry and have strong product innovation capabilities. At the same time, after more than 20 years of development, they have accumulated sufficient strength and development stamina. There are indications that this world financial crisis will provide a rare historical opportunity for China's stone industry to reshuffle. The pace of integration of China's stone industry will accelerate with the development of the economic situation, thereby promoting the overall improvement of the industry.

At present, the state has successively introduced a number of favorable policies for stimulating domestic demand. However, for the emerging Chinese stone industry, the market areas and product development and application fields that have not yet been touched on are still quite broad. It is understood that in the face of the huge economic environment impact on stone companies, Shandong, Fujian Nan'an and other places have begun to implement the stone industry policy of “giving benefits to the strong, elimination of backwardness, and major changes to small”, from large-scale modern enterprises from the land Support for funds, policies, and other aspects. For enterprises that are backward in technology and unable to transform and upgrade in accordance with the requirements of scientific development, use economic means as the main force to eliminate them.

Judging from the fundamentals of China’s economic development, the construction of urbanization will take a long way to go. The construction of a new socialist countryside will also provide a broader space for the development of stone products. Judging from the long-term policy goals of energy saving and emission reduction, natural stone products with the lowest energy consumption in building materials will be more widely used in modern urban construction projects and home improvement markets.