Article/Zen Can
Time flies so fast, another week has passed.
Last week, what attracted people's attention was not only the daily increase in COVID-19 cases in various countries around the world, but also China's gradual economic recovery. Data released by the National Bureau of Statistics on April 17 showed that China's GDP in the first quarter was 20,650.4 billion yuan, a year-on-year decrease of 6.8% based on comparable prices. In terms of industries, the added value of the primary industry was 1,018.6 billion yuan, down 3.2%; the added value of the secondary industry was 7,363.8 billion yuan, down 9.6%; the added value of the tertiary industry was 12,268 billion yuan, down 5.2%. Faced with the huge impact of the COVID-19 epidemic sweeping the world, it is not easy for my country's economy to achieve such results in the first quarter.
In this environment, what recent phenomena in the ceramic industry are worthy of attention?
Familiar formulas, familiar tastes, current hot topics, integration of relevant information, interviews with ceramic industry professionals - welcome to the 8th issue of "Last Week's Highlights" of China Ceramics Network.
一
Will revenge consumption come?
With the continuous and orderly resumption of work and production in the country, people's lives are becoming increasingly normal. Against this background, governments across the country have recently distributed consumer vouchers to promote the recovery of the consumer market. Suddenly, some business premises in the catering, tourism, fast-moving consumer goods and other industries have seen the phenomenon of mass consumption. The legendary retaliatory consumption seems to have arrived. But part of the reality is that some industries have not ushered in retaliatory consumption, but have ushered in retaliatory price increases, such as the price increases of some companies in the catering and retail industries and the rent increases of some terminal stores in the home building materials industry.
What is the real situation of the home building materials industry, especially the ceramic industry, which has low attention, low consumption frequency and low repurchase rate? Will there be retaliatory consumption behavior?
Li Fan, general manager of Wenzhou Jiabo City said: "Decoration behavior is a low-attention, high-involvement service process behavior, not a fast-selling and immediate consumption behavior of necessary products. Consumers will click The current market situation adjusts the decoration plan, coupled with the current joint promotion methods of single-brand and multi-brand heterogeneous products carried out by building materials manufacturers and dealers during the epidemic period, which is reflected in the emergency marketing strategy with the theme of brand low-price discounts. To a large extent, the consumer market has gradually formed a supply-side selling signal. According to the response of the consumer market in the first quarter, terminal purchasing enthusiasm has changed from short-term surprises.Purchasing is falling due to the squeeze-selling triggered by panic low prices in a large number of mainstream supply-side markets, and a price-comparison wait-and-see mentality has arisen. As a result, a certain number of decoration terminals have chosen to adjust their decoration plans, and some consumer groups that originally considered the brand as the first factor have developed in the direction of cost-effectiveness as the primary comparison. Therefore, judging from the current situation, it is difficult to form retaliatory consumption behavior. Instead, there is a shift towards rational consumption behavior comparing cost performance. Personally, I believe that the post-epidemic consumer market will tend to change in consumer behavior focusing on cost-effectiveness and service empowerment due to this periodic change in the marketing behavior of manufacturers. ”
"Ceramic Man" Huang Xunlong who is on a business trip at the terminal reported that the occupancy rate of the plane he took from Guangzhou to Hefei on April 15 was only about 60%, and the occupancy rate of the high-speed train from Hefei to Bozhou was less than 10%; In the Bozhou building materials market, he did see that passenger flow and transaction volume had been generated, but the sales performance was far from the level of the same period last year. He believes that the so-called retaliatory consumption is open to question. We cannot say that retaliatory consumption has occurred just because we went out for a meal, visited a park, or used consumer coupons issued by the government. However, he is still confident about the recovery of the market. With the joint efforts of all ceramic companies online and offline and the continuous efforts of promotional training, he predicts that the "Little Indian Spring" in the ceramic industry will appear in May.
"The traffic in the store is still quite deserted, and now you can use your mobile phone to view bricks online. Some customers will not even come to the store until the transaction is completed. Not to mention the home decoration company, there are really few orders this year." A resident from Longyan, Fujian The information delivered by the dealers of Easyhome is not so optimistic.
Shunhui Tile Marketing Manager Zheng Jian’s view is obviously much more optimistic than this dealer’s. He believes that judging from the smooth achievement of the monthly sales target of Shunhui Ceramics in March, although the current terminal market has not ushered in retaliatory consumption, there is already a clear trend of recovery.
[Zhongtaojun Comments] Brother Chan believes that no matter whether retaliatory consumption will come or not, in this case, the most important thing for manufacturers (ceramic companies, brands) is to take positive measures Stable all customers including dealers, and the most important thing for dealers is to do everything possible to establish close contact with new and old customers and potential consumers. As for the effect, it depends on the strength and efforts of the manufacturers and dealers.
二
Country Garden ventures into ceramic manufacturing
A few days ago, the emperorOujia Furniture announced that it has signed a "Strategic Cooperation and Non-public Issuance of Shares Subscription Agreement" with Country Garden Venture Capital, and will issue no more than 26.7666 million shares to it and raise total funds of no more than 500 million yuan. It is expected that after the issuance is completed, Country Garden Venture Capital will hold 6.5% of the equity of Diou Home Furnishing.
Previously, Country Garden's self-produced products have been involved in bathrooms, furniture, flooring, cabinets and other fields. After this capital increase, it has officially entered into ceramic manufacturing. The real estate industry has gradually moved into the era of fine decoration, and the engineering channel has increasingly become the main growth channel for ceramic companies. The strong alliance between Country Garden and Diou Home Furnishing (Oceano) marks the official start of the real estate integrated ceramic industry chain. Will other real estate companies follow Country Garden's footsteps?
How will other ceramic companies compete next? For the ceramic industry, is this a wolf or an opportunity?
There is a lot of discussion in the home building materials circle about this.
Zhou Zhong, founder of Pan Home Furnishing Circle, believes, "As a giant in the real estate industry, Country Garden wants to eat both upstream and downstream. From real estate, customized home furnishings, decoration to bathroom and even ceramics, it covers almost all aspects of real estate development." Sima Zhao's heart is well known in the industry."
Online, passerby A said, “From the moment hard-decorated houses appeared, the appetite of leading real estate companies was determined.” Passerby B said, “Tile agents are slowly transforming into service providers, and the source of profits is mainly services. "; Passer-by Ding said, "I feel that it is only a matter of time for real estate companies to make wardrobes. As practitioners in the customization industry, we need to be prepared for danger in times of crisis. Ceramic tiles, wooden floors, doors and bathrooms have already learned from the past."
[Zhongtaojun Comments] Brother Chan believes that the Internet era is an era of cross-border robbery. It is normal for Country Garden to get involved in ceramic manufacturing. Even if there is no Country Garden to integrate the ceramic industry chain today, in the future There may also be predators such as Huang Guiyuan and Hong Guiyuan to do these things. In this era of rapid change, "when the times abandon you, they won't even say goodbye to you." The only thing ceramic people can do is to maintain a broad enough vision and spread more knowledge whenever something new emerges. Think and try harder, whether it is making rock slabs, thick bricks, functional bricks, entering the field of finely decorated houses, or cooperating with real estate companies to create a strong ceramic industry chain... they are all beneficial developments. explore. Success is achieved through constant trial and error. Who dares to say that Country Garden is definitely not doing trial and error?
三
Old house renovation has a huge market
Following the proposal to speed up the renovation of old urban communities on June 19 last year, the project was mentioned again in the executive meeting of the State Council on April 14. The meeting pointed out: This year, various regions plan to renovate 39,000 old urban residential areas, involving nearly 7 million residents, which is double the number last year. The focus is on residential areas built before the end of 2000. It is necessary to establish a mechanism for the government, residents and social forces to reasonably share reconstruction funds. The central government will provide subsidies and local government special bonds will be given priority to encourage social capital to participate in reconstruction operations.
The renovation of old communities will definitely involve renovation of the inside and outside of the house, and house renovation will definitely involve the replacement of ceramic tiles and bathroom ware. This will more or less bring new market demand to the ceramic industry, which has been experiencing weak growth and unstoppable decline in recent years. Among the renovation projects of 39,000 old communities and nearly 7 million old houses, how much of the cake can ceramic tiles and bathrooms get?
Judging from the above data alone, the old renovation market contains many opportunities. But what is the actual situation, the dealers from the terminal should have the most say.
Li Senlin, a dealer of Wuxi Eagle Brand Ceramics believes that in recent years, the demand for decoration brought by the renovation of old communities has gradually increased. As for how much of the market share of ceramic tiles and bathroom ware can be divided, it depends on the dealer. Business model and convenience. Take myself as an example: in the past, it was a single settlement point in old residential areas, with long cycles and difficult to point out. Since last year, we have tried to cooperate with the platform to promote rapid house repairs and office renovations, with concise packages, convenient measurements, quick quotations, and professional cooperation. The construction progress node will be turned from passive to active, and only the entry point will be reached. The platform is not just limited to office buildings and building materials shopping malls, but more of a convenience service platform for supermarkets and people around you. To get an extra piece of the pie in the market, we must delve into multiple channels, try new media, and constantly explore and refine.
[Zhongtaojun Comments] Brother Chan believes that since the country has such great determination in renovating old houses and the data looks so attractive, it must be a great opportunity for the ceramic industry. opportunity. Whether ceramic companies and dealers can seize the opportunity depends on their service capabilities. Compared with the decoration of new houses, consumers’ psychological budget for the renovation of old houses is not very high, but the actual cost is quite high because there are many more items that need to be dismantled. In addition, it is also an improvement demand, so the demand for ceramic tiles As the demand for building materials increases, consumers will choose whoever provides more considerate services.
Is it time for rock slabs to explode?
Recently, the investment promotion platform of China Ceramics Network - "Investment Helper" once again received 3 messages from dealers looking for slate brands. As early as January or February, a Fujian dealer had left a message on "Investment Helper" saying he wanted to join the slate brand.
Under the epidemic, the ceramic market has suffered a severe setback. However, from the information about these dealers' intention to join, we can feel the vitality of slate in the end market. This seems to confirm the accuracy of the prediction made by some industry experts and media people that "in 2020, rock slabs will enter an explosive period."
Xian Jiantang, General Manager of Marketing of Qianghui Group believes that it is inevitable that products that can provide better physical properties, aesthetics and stability will be sought after by the market. From the introduction of new products to the gradual improvement of cost performance and then being recognized and used by the market, this is the trend of product development. Whether it is slate or thick bricks, they are constantly trying to seize the stone and artificial stone market to expand the cake and effectively expand customer acquisition channels. After last year’s technical improvement in the deep processing of slate, coupled with the “education” of channel dealers and consumers last year, this year will be an explosive period for slate. How to develop new resources and transform old resources with the ability to transform is the core point worth positioning for each manufacturer at present. Moreover, the price war after the outbreak of rock slabs with low brand recognition will be a midfield challenge for rock slabs.
Zhao Ying, a designer from Qingdao, believes that the demand for slate is still relatively niche. Some building materials manufacturers are looking for slate brands to join, and they also want to have top products to offer to some high-end customers. A bonus chip.
[Zhongtaojun Comments] Brother Chan believes that in order to predict whether rock slabs will usher in an explosive period, it is necessary to define the outbreak: whether it will explode in a niche market or in the entire Market explosion? After all, the output and sales of rock slabs in the entire ceramics industry are like lice on a bald head - it's obvious. However, according to ceramic information statistics, according to the online plans of ceramic companies, it is expected that by the end of 2020, there will most likely be more than 30 domestic large/rock slab production lines of 1200×2400mm and above. As more and more slate production lines are put into operation, the ceramic industry hasJudging from market experience, the slate market is bound to usher in a bloody price war. In order to survive and gain a place in the cruel market competition, ceramic companies focusing on slate should seriously think about what Chen Qinxian, general manager of marketing of Xinzhongyuan Ceramics, said in an interview with other media, "If companies must focus on slate direction development, then user thinking is indispensable." "Nowadays, the ceramic industry has been 'overhauled' by fine decoration and decoration, but if companies have the courage to do it in the field of slate, they can operate by integrating other people's ideas. , it is possible to achieve results, because rock slabs can be customized."
Okay, this is the end of this issue of "Last Week's Highlights". If you have any ideas and suggestions, you are welcome to leave a message and comment, and you are also welcome to break the news and accept interviews!
