Zheng Yongsheng, Secretary General: Increased sales to promote industry reshuffle
Zheng Yongsheng, Secretary General of Shijiazhuang City Federation of Industry and Commerce Building Ceramics
"For the changes in the ceramic sanitary ware market in Shijiazhuang next year, I think the overall decline is still the trend of the market next year. I think there are two aspects to the market changes. First, the brand is more and more complete; second, the brand is relatively concentrated in the hands of certain businesses. "The dealers gradually move toward corporatization and multi-brand operation may be a trend in the Shijiazhuang market next year; and the entry of Other industries is probably a phenomenon that will be faced in the Shijiazhuang Taowei market next year."
Shijiazhuang sanitary ware market as a whole decline
[Reporter]: What is the development status of the ceramics industry in Shijiazhuang in 2011? What are the characteristics?
[Zheng Yongsheng]: There are several characteristics of the development of the Shijiazhuang home market in 2011. First, the macro-control and purchase-restriction policies of the real estate industry have had some impact on the downstream building sanitary ware industry. Although the real estate industry regulation has a certain lag on the home industry, there is a certain lag in the time, but the current home market has already responded, especially in the second half of this year, the response is very obvious.
Second, due to the depression in the sales terminal market in the first-tier cities, the ceramics industry has forced first-line merchants to enter the second-tier market. This situation has created some pressure on our local businesses. For example, the arrival of the actual home, followed by the dealers in the first-tier cities have entered different forms of business, causing pressure on local dealers.
Third, the disorderly competition of the home industry itself has caused great trouble to the industry itself.
4. Since the export of ceramic sanitary ware industry has suffered from anti-dumping in the second half of this year, the increase of tariffs has caused a great blow to the upstream (manufacturer) of Taowei industry. Some manufacturers have caused a lot of trouble for the normal operation of the downstream in the world of shutting down, stopping and reducing the map.
The above reasons lead to the overall decline of the ceramic sanitary ware industry in Shijiazhuang in 2011. Dealers are sad, and it is estimated that the proportion of business profits and losses is half.
Increase in stores to promote industry reshuffle
[Reporter]: The rapid development of Shijiazhuang's home circulation field, such as the impact of Red Star and the actual presence of Shijiazhuang Taowei industry?
[Zheng Yongsheng]: Actually, the family has settled in Shijiazhuang. Although it has not been opened, it has already brought a small wave to the Shijiazhuang home market through investment promotion. The arrival of the home, the first is the first-line brand dealers I just mentioned, which put pressure on local businesses and also injected new elements into the Shijiazhuang home market. Second, the national chain home stores such as the Real Home and the Red Star Macalline are in the business management and operation than the local companies to go ahead, this is its advantage. The continued development of Red Star Macalline and Real Home in Shijiazhuang will definitely have a positive impact on the Shijiazhuang home market.
At the same time, it creates more pressure on the business. There are more stores, more stores, more costs to open more. However, for consumers, in the short term, they may not feel the fierce competition in the market. As the cost of the business increases, the sales price will inevitably increase accordingly. We have to look at this issue in two ways. First, to promote the industry to reshuffle; second, the increase in business costs, the increase in sales to consumers.
In addition, I believe that the industry reshuffle has not really begun yet. It is expected that in the second half of 2012 and the first half of 2013, it will be the most difficult time for most of the business in Taowei industry. At that time, it will be the real market node and the turbulent period. It may be that today is very sad, tomorrow is even more difficult, and the day after tomorrow, before the days are better, it will not pass.
[Reporter]: For dealers, how does Taowei brand balance in brand operation and marketing? How should we adjust the brand operation and marketing methods to cater to market changes?
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