How to break through the difficulties of Chinese ceramic trade

Since 2004, India’s first anti-dumping of building ceramics against China, the anti-dumping of Chinese ceramics came to the fore, followed by South Korea, the European Union, Thailand, Argentina, etc. These are Chinese ceramics. The previous major export markets, to a large extent, have a great impact on the rapid development of ceramic tile export trade. From January to May 2018, China exported 5.21 million tons of building ceramics, down 2.6% year-on-year. Looking at the average annual growth rate of China’s building ceramics export volume in the past five years was -2.95%.

The continued decline in China’s ceramic tile exports is mainly due to two main factors, internal and external.

Internal:

1, domestic labor costs continue to rise, industry The environmental protection pressure and the increasing investment in environmental protection, the substantial increase in the production and logistics costs, the export cost of ceramic tiles continues to increase;

2, the domestic ceramic tile export market is chaotic, the overall Chinese ceramic tile Insufficient international image enhancement has led many international buyers to question our products and markets.

External Causes:

1. The gradual saturation of the international market and the impact of the current international economic environment have led to a direct decline in the purchasing willingness and purchasing power of the international building materials market. ;

2. Emerging ceramic tile producing countries, such as Brazil, India, Indonesia, etc., they have a large number of low-priced products, occupying a part of the international low-priced products market, forming a direct competition with China;

3. Fueled by fuel and some regional regulations, the additional cost of exports continues to increase.

The three major directions, the future of ceramic tile exports

Under the influence of various unfavorable factors, how can our ceramic tile products break through and recreate their glory? This is every one of our employees Have to think about the problem. The rise and development of China’s ceramic tile industry, production technology and equipment technology have reached the international advanced level, we should transform from the original low-cost market-leading export ideas to a new export model.

Therefore, the future of China’s ceramic tile export needs to be developed in the three directions of brand, professional and service, and the transformation from “Made in China” to “Quality in China”.

“Brand” = a deep ruling of brand loyalty. Low prices are no longer the advantage of China, the brand is. Through the export of its national “imported brand” image, it can seize the middle and high-end market. With the continuous development of the industry, Chinese ceramics have reached the international advanced level in terms of design, technology and technology. What is needed now is to brand our own products for export, let export-oriented enterprises operate according to the branding route, and erect international brands. Image, output products simultaneously export corporate culture and corporate values, increase product added value, inject emotional drive, enhance brand competitiveness in the international market, gradually get rid of the harsh competitive environment in the low-end market, and enable enterprises and products to develop in a healthy way.

In 2016, Asian ceramic tile demand reached 8.818 billion square meters, equivalent to 69% of global ceramic tile consumption. Asia has always been China’s largest export market. Close proximity is China’s advantage. It can enhance its brand output, cultivate brand loyalty in the market, seize the mid- to high-end market, and avoid low-cost competition in emerging Southeast Asian countries. It also fills the gap between high-priced Italian and Spanish high-end producers and low-end products. At present, the international tile pattern has also changed. The core of export is to use the difference of products and value to obtain the market. According to the needs of different countries and regions, the value of corporate brand value is outputted, and the price competition alone is eliminated. As for how to cultivate brand loyalty in the market, this topic will have the opportunity to discuss with others in the future.

“Professional” = focus and ultimate. As the saying goes, “there is a specialization in the industry.” In the current diversified international market competition environment, no merchant can complete the business of all customers, and no company can produce and sell all kinds of products. The traditional trade model is “selling by sales”, that is to say – what the customer needs and what I sell, at best, is a buyer. Because the demand in the international market is diversified, and it is important that the market demand is often not transferred by the seller’s will.

Passively according to market demand, bigger and more, will definitely fall into a vicious cycle of death: more and more categories, the human and capital costs of product research and development, procurement continue to increase, but The contradiction between the constant changes in market demand and the vicious low-price competition of a certain category, the vitality and development of the enterprise are slowly exhausted in this resistance and consumption. Specialization means focusing on a certain area of ​​its own strength, constantly discovering products, market potential, intensive cultivation, and better control of costs, so that it can preserve its advantages in international competition. When the market begins to change, it means the emergence of opportunities and challenges. Although it is full of uncertainty, because of the specialization, it has a strong advantage in the market segment.

“Services” = Customer Relationship Management CRM. This concept was rarely proposed in the field of export before, but with the continuous increase and deepening of international trade, services will gradually become the largest added value of products, and trade service is the industrial upgrading of ceramic tile export trade. Serving customers and customers in all aspects of the market is an improvement in the sales of traditional products. This has high requirements for export enterprises. In addition to familiarity with products and control of product quality, it is also familiar with local import laws and regulations, international trade terms, real-time trends of international logistics, international trade finance, etc. Aspect knowledge. “Time is the biggest cost”, you save time for your customers, the cost of your customers is reduced, and your profits and competitiveness increase. Through the forward-looking exploration of the international market, we will promptly provide customers with sales and development plans suitable for him and his market; avoid trade risks, accelerate customer funds, and logistics turnover rate.These should be included in the new trade services. Putting the service forward, the product is followed, so that you can firmly grasp the opportunities in the export trade, bring greater market share to your customers, and enable you to gain a larger market share in the local market.

All in all, the current ceramic tile export market is still in a chaotic and volatile period of turmoil. The industry should continue to standardize international trade operations. The industry will unite against unfair trade bastions and strengthen our brand awareness. In order to get out of trouble in such an unfavorable environment.

Schedule is the export trade data of recent years (from the China Business Network)

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