Abstract "This year can be said to be the most difficult year in the history of the ceramic industry, the situation is worse than in 2008," Foshan ceramics industry, whose output exceeds 60% of the national ceramics, told Netease Finance. Declining overseas demand, domestic real estate...
"This year can be said to be the most difficult year in the history of the ceramic industry, the situation is worse than in 2008," Foshan ceramics industry, whose output exceeds 60% of the national ceramics, told Netease Finance. The decline in overseas demand and the decline in domestic real estate sales led to a decline in domestic sales. Foshan ceramics companies, which had no choice but to help, had to stop the kiln in advance to cope with the cold winter. Under the urging of the European debt crisis and the slowdown of the domestic economic growth, the large number of small and medium-sized enterprises in the Pearl River Delta are in trouble. How should they transform? The reporters have conducted multiple investigations in the Pearl River Delta region to select multiple representative industries and try to be netizens. Presenting the difficult situation faced by a large number of SMEs here.
Internal and external difficulties this year, the sales volume has dropped by more than 30%.
In Foshan, Guangdong, the largest distribution center for ceramics in China, Netease Finance visited the Shagang and Shiwan Wholesale City, which are concentrated in retail ceramics stores. In the afternoon, the shops with larger shops occasionally have sporadic customers entering the goods. Generally, the small shops are popular and cold.
"This year's situation is very bad. Not only is there no one today, this year is such a deserted situation, and the number of customers looking abroad has decreased significantly." Luo Zhibin of Zhongxing Ceramics Confluence in Foshan Chancheng District of Guangdong Province told Netease Finance.
This is a specialized manufacturer of ceramic tiles, mainly for export markets such as Africa and the Middle East, but also for retail and domestic customers. "This year our company's sales decline at least 30%, can be seen from the popularity of the store", Luo Zhibin said helplessly.
The reporter noted that this year's ceramic industry can be described as a house leaking overnight rain. The European debt crisis has led to a slowdown in foreign demand, and domestic real estate regulation has also made domestic sales difficult. In November, the European Union announced that it will impose a temporary anti-dumping duty on ceramic tableware originating in China, with a tax rate of up to 58.8% and a minimum of 17% for a period of six months. Among them, the tax rate of 398 responding enterprises was 17.6% to 31.2%, and the tax rate of not participating in the responding enterprises was 58.8%. This has undoubtedly made the sales of ceramic enterprises worse.
“At the domestic market level, the economic downturn, real estate regulation directly affects the consumption power of first- and second-tier cities and merchant sales.†Lan Weibing, director of the Foshan Division of the China Ceramic Industry Association, said that brands can expand to domestic third- and fourth-tier cities, but their markets are limited. In addition, the occupation of regional brands has reduced the competitiveness of foreign companies. Rough statistics, in the ceramic enterprises with a certain scale, domestic sales fell by 30% or even higher this year.
At the same time as sales fell, the profit margin of the company was further squeezed. Blue Guard said that Foshan ceramics enterprises generally earn 3-4 points in export business, brand enterprises can reach 7-8 points, and 10 points are rare. Now, the increase in anti-dumping duties, the pressure on the appreciation of the renminbi, and the increase in labor costs and rents make it even more unprofitable for companies that have earned only three or four points.
"Besides the year of SARS, this is the hardest year for me in the ceramic industry for 18 years. The whole industry is in a state of bleak operation." Pu Dingxin, chairman of Louis Valentino, looks at the current ceramic industry.
Blue Guard also said that Foshan ceramics production is more than 60% of the national ceramics, the most representative. With the policy of changing cages in Guangdong, many ceramic enterprises have been transferred to Sichuan and Fujian. Judging from the concept of Pan-Foshan ceramics, the overall operation this year is the most difficult year for ceramics in history, and it is worse than 2008.
In the cold winter, the manufacturer has no choice but to stop the kiln in advance.
According to a set of public data, in the 112th Canton Fair in the second half of this year, the number of participants decreased by 10.26% compared with the same period of the 111th session, which was 10.05% lower than the same period of the 110th session. The European market, which has a large share of ceramic exports, is also very bleak. The turnover of orders in Europe at the Canton Fair fell by 23.1% this year. According to the export statistics of the General Administration of Customs, the export volume of Chinese ceramics to the EU in the first half of 2012 decreased by 29.26% year-on-year.
The situation of listed companies is also very bleak. According to the reporter's three quarterly reports of eight listed companies in the ceramics sector, in the first three quarters of 2012, the revenues of eight ceramic listed companies such as Luyang, Smick and Great Wall Group were about 2.652 billion yuan, compared with 6 companies in the same period last year. Both fell year-on-year, with the largest drop of 86%; in addition, three companies suffered losses, and their net profit declined overall year-on-year, with a maximum year-on-year decline of 732%.
In explaining the factors of the decline in performance data, relevant companies pointed out that domestic macroeconomic impacts, rising corporate costs and real estate regulation have affected business operations.
“This year, the whole industry is not very good, especially those factories that are branded. It can be said that there is no order to open the kiln. I don’t have to do the kiln. At least half of the businesses I know around have already stopped the kiln, and some enterprises’ stocks have been piled up. Like the mountain," Chen Xiaolian, general manager of Foshan Jingtian Sanitary Ware, said that in general, the ceramic industry will stop the kiln every year, but this year is ahead of previous years.
Luo Aiqun, another Foshan Lianchang Ceramics Wholesale Department that can sell Marco Polo tiles, also admitted that compared with previous years, the sales situation this year is really bad, and the export situation has been greatly affected. Since the end of November, the company has officially stopped the kiln and carried out 2- 3 months of overhaul.
“Some small factories started to stop kiln as early as October, and they basically stopped some big companies with brands when they stopped in November,†Luo Zhibin said.
Although many companies stop the kiln in advance, the problem of inventory is even more headache.
Chen Xiaolian believes that on the one hand, despite the large domestic market, the competition in the market is large, coupled with the poor sales of enterprises, resulting in too much inventory squeeze; on the other hand, export restrictions, making inventory climb.
“In terms of production capacity, ceramics have doubled compared with before 2005. The previous total production capacity was 5-6 billion yuan, but the current production capacity can reach 10 billion yuan.†Blue Guard said that the market economy is not ideal now. Stopping the kiln is also a process in which the company adjusts itself to such a large capacity.
Chen Huan, executive vice president of the Guangdong Ceramics Association, told Netease Finance that this year's situation is indeed a bit worse than last year. The overall inventory of the entire ceramic industry is increasing, but as to what extent it is related to the business and brand of the company.
Accelerated transformation industry competition threshold will increase
Zheng Xuechong, deputy general manager of Dongpeng Ceramics Guangzhou Branch, believes that the entire industry has entered a stage of shuffling this year.
“In the ceramics industry, many manufacturers used to be purely manufacturing companies, not paying much attention to brands, networks, marketing, etc. Once they encounter economic downturns or reduced domestic demand, these companies may stop production due to the decline in sales,†said Zheng Xuechong, China. The ceramic industry still has to re-examine its own position. If it continues to be a pure manufacturing enterprise, there will be no innovation, no new ideas, it will inevitably be eliminated.
Pu Dingxin also holds a similar view. He pointed out that any industry that develops to the end will definitely develop into a competitive industry, and the concentration of the industry will naturally become higher and higher. The big brand enterprises are not too worried about factors such as rising costs and export restrictions.
Chen Huan said that China's current urbanization level is still relatively low. In the future, due to urbanization and national development, the market will have relatively strong demand for ceramic products, but the period of rapid development as before has passed, the future of the entire ceramic industry It will also shift from extensive development to the steady development stage of the rise of powerful enterprises.
"We are mainly export-oriented, domestic sales only account for 20%, 80% still rely on export, so the impact is not so serious, there is still steady growth," Pu Dingxin said, the entire ceramic industry is in the winter stage, the real estate impact is The most important reason is that the companies that are able to strengthen at the moment are basically fixed by sales.
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