Ceramic sanitary industry opens up a new path for development

Recently, it has been reported that on December 16, 2010, Dongpeng Ceramics, a leading manufacturer of ceramic sanitary ware products in Guangdong, signed a cross-border cooperation agreement with Siemens in Guangzhou. Both parties will fully cooperate in product design, marketing, and procurement to create an overall home concept. .

The term “cross-border” is highly sought after, such as cross-border design, cross-border marketing, and cross-border music. The “cross-border” operation has also become a hot topic and has become a practical action for many companies, especially the ceramic sanitary ware industry. Such as:

Hundreds V crossed from the cupboard to the whole closet, Cobb Boloni, Europa spanned from the kitchen space to the bathroom space; the iconic floor entered the ceramic sanitary ware after undergoing the leap to the wooden door and then to the whole closet; the leading brand of the pressure cooker industry Supor will also launch Supor bathroom.

Some well-known brands in the ceramic sanitary ware industry are moving towards cross-border business, from ceramic tiles to sanitary ware, from sanitary ware to ceramic tiles, to hardware, to cabinets, from hardware to ceramic sanitary ware... such as Huida, Wrigley, and Faenza. The brand is involved in tiles, nine animal husbandry, brilliant and other professional hardware to ceramic sanitary ware, bathroom furniture, and the internationally renowned sanitary ware brand TOTO is involved in internal and external wall tiles and floor tiles. In particular, Tangshan Huida Ceramics Group will build Asia’s largest production base of hardware and bathroom hardware and bathroom furniture. Xie Yuerong, managing director of Guangdong Foshan Leroy Ceramics Group, said at a regular mid-year dealer meeting that it plans to enter the cabinets in 2011. Wardrobe, wooden door field.

Cross-border business, so that more industry companies involved in the ceramic sanitary ware industry, but also allow more and more ceramic sanitary companies continue to expand their product categories, thereby achieving the extension of the industrial chain, expand the brand extension, leapfrog business operations strategic objectives. Enterprises involved in ceramic sanitary ware, such as the Sanskrit Sanitary Ware, Shenlu of sanitary ware, Supor sanitary ware, Huida faucet cabinets, etc., shot is generous. Such as Shenluanda Sanitary Ware plans a total investment of 500 million yuan, covers an area of ​​about 560 acres, is expected to complete the completion of five tunnel kiln production within 2 years, when the company's annual output of up to 5 million, with an annual output value of 1 billion yuan ** *the above. Huida Leading Cabinet Industry Base has a total investment of 650 million yuan. After the project is put into production, it will form an annual production capacity of 1.5 million high-grade faucets, 500,000 bathroom cabinets, and 150,000 stainless steel sinks, with a sales revenue of 1.5 billion yuan.

Cross-border business really reflects the low concentration of ceramic sanitary ware brands and has become a new appearance in the ceramic sanitary ware industry. According to reports, the reasons leading to cross-border business to the sanitary ware industry are no less than low entry barriers, low brand concentration, and low market participation in competition. Looking at the domestic sanitary ware brands, although there are many, but no one company in the domestic sanitary ware market can occupy 2% of the market share. Even TOTO, which ranks among the top sales in the country, sold more than one billion yuan in 2009. Relevant data show that at present, the top ten sanitary ware brands such as Huida, Wrigley, Kohler, TOTO, Faenza, American Standard, Anwar, Apollo, and Lejia account for less than 40% of the total market share. Share less than 4%.

Low barriers to entry, low concentration, low market competition, huge profitability, huge market space, attractive development prospects, and an unstabilized industry structure have provided access for latecomers to operate ceramic sanitary wares across borders. Space and opportunity. Therefore, more and more ceramic bathroom brands, market competition is becoming more and more cruel.

Cross-border operations, successful cases, and lessons learned from failure. For the ceramic sanitary ware industry, whether cross-border operations can promote the reshuffle of the industry, whether the stronger Matthew effect can be achieved, whether ceramic sanitary ware industry can bring about gratifying changes, and whether the ceramic sanitary ware industry can change “three” The phenomenon of "low" is still unknown. The relevant person expects that in the next 3-5 years, it will be a critical period for the integration of the sanitary ware industry.

Cross-border management may be a "squid" or a "wolf". It is not known whether it will bring a genuine new atmosphere to the ceramic sanitary ware industry. But I hope it will bring a surprise and hope for the ceramic sanitary industry.