On the afternoon of January 11, the "10th National Ceramic People Conference and 2020 China Ceramic Brand Conference" grandly opened at the Huaxia Pearl Hotel in Foshan. Li Zhilin, the "Jobs of the ceramic industry" and chairman of Jianyi Marble Tile, delivered a speech at the scene Sharing on the theme of "Reconstructing the Value of the Future".
Li Zhilin thinks——
1. The concentration of the industry is increasing. The output value of the TOP10 has accounted for 18%, an increase of three points. I believe that in the future, the output value of the TOP10 may account for 30%, and the TOP20 may exceed 50%.
2. In 2020, each ceramic company has an average of only 2.4 production lines, while it was 2.2 in 2017, indicating that most ceramic companies are small and medium-sized enterprises. Therefore, the competition is not very fierce now.
3. Less is more, and more is often less! Being bigger and more is what the "big brothers" do. It is difficult for 99% of companies to have the ability to do so much. Since they can't do that much, it is better to do less and be more focused on market segments and professional technologies. May be able to fight a way to survive.
4. In fact, our companies still have great hope, because the TOP10 accounts for less than 1% of the total number of companies. There are 1,155 companies in the entire industry, and 99% of our companies have the opportunity to enter the TOP10 or TOP20.
5. From a certain perspective, running a business is also a long-distance race. Sometimes it is not about taking one step at a time, but about who can run to the end.
The following is the transcript of Li Zhilin’s speech:
Today (January 11th) all our ceramic tile people gathered together and just listened to Chairman Miao (Miao Bin)’s analysis of the industry (for details of the speech, please see: Latest data! The annual production capacity of ceramic tiles in the country is 12.3 billion square meters. The idle capacity rate reaches 30%). In fact, the mood is quite heavy, but also quite promising. I just mentioned that 15.45% of enterprises have withdrawn in the past three years. This is a very heavy topic, but after seeing some other data, I feel that the industry has made great progress.
I remember a few years ago, our per capita labor productivity seemed to be only 400,000 yuan. In 2020, it will exceed 650,000 yuan, an increase of more than 50%. Of course, the gap between us and the world's ceramic powers is still quite large. I think Italy's is 1.8 million yuan, which shows that we have made great progress.
In 2020, we want to pay tribute to ourselves!
Today, the conference asked me to share "Reconstructing the Value of the Future". Under the epidemic in 2020, we were actually quite hesitant at the beginning. I remember talking to Yin Hongbo at the beginning of the yearWhen Shi did the first episode of the program, we all predicted that exports might be cut in half, but in fact it only dropped by more than 20%, and our entire output and sales (growth) were both positive. This is indeed not easy. I feel that the greater the test, the more it proves the strong perseverance of our ceramic people.
At the beginning of 2020, I went to Wuhan once, and again in December. The feeling of going there twice was different. The feeling of rebirth was very obvious. Looking back, this is also the case in our industry. There is a feeling, especially at the beginning of 2020, that we were really panicked, but after a year we found that China is a great country, just as Chairman Song (Song Zhiping) just said (see the speech content: "China's Kazuo Inamori") "Song Zhiping: The innovation and transformation of ceramic enterprises must do these things) said: China is the only major economy in the world with positive growth, and the growth rate next year will definitely be above 7% or 8%. Everyone is very confident. We have to pay tribute to ourselves. I think it should be a very gratifying thing to achieve such results after one year.
The proportion of TOP20 may exceed 50% in the future
As for "Reconstructing the Value of the Future," we have actually thought a lot about it. In the morning (January 11), we also discussed with Chairman Song "Where will the big changes in the future go?" This is also the development stage of Chinese enterprises. The issues that need to be considered at this stage, especially those of us "post-60s" business founders, are all facing the problem of "reconstruction", but we must understand the inherent laws of the development of things. This is a logical thinking process, and I want to share it from two aspects.
This picture was drawn by myself in 2015. What does it mean? The vertical axis is the number of enterprises, and the horizontal axis is time. When the industry develops to a certain level, the number of enterprises will definitely decrease. In fact, judging from the results of the two "Ceramic Industry Long March" surveys in the past few years, the concentration of our industry is at Improved, the output value of TOP10 has accounted for 18%, an increase of three points. I believe that in the future, the output value of the TOP10 may account for 30%, and the TOP20 may exceed 50%.
Judging from this curve, the entire output or sales are relatively stable, which means that certain companies may be eliminated. In fact, our companies still have great hope, because the TOP10 accounts for less than 1% of the total number of companies. There are 1,155 companies in the entire industry, and 99% of our companies have the opportunity to enter the TOP10 or TOP20.
Because the current output value of "Big Brother" is only 10 billion, which accounts for more than 3 points of the total output value, which means there are still 97% space. I think this is both a challenge and an opportunity. If calculated based on 2,700 kilns, each company only has 2.4 production lines, and the number in 2017 was 2.2, indicating that most companies are small and medium-sized enterprises. Therefore, it should be said that the competition among everyone is not very fierce now.
At present, the output value of the top 20 real estate industry has exceeded 50%, has passed the stage of large-scale development, and is moving towards the stage of intensification; if it is the air-conditioning industry, it is now a two-horse race, Gree and Midea have already Accounting for 80%, they have developed further. It turns out that there are one to two thousand companies in the air-conditioning industry. I think this is a rule that must be followed.
So, what about 99% of small businesses?
I very much agree with the four aspects that President Song just said, because this point of view has deeply touched me during his New Year's Eve speech. This is also some of my own experience in running a business: less is more , more often means less! After all, being big and doing more is what the "big brothers" do. It is what ten or twenty people do. In fact, it is difficult for the 99 of us to do so much. Since we can't do that much, it is better to do less. , if you work harder, you may be able to find a way to survive in this market segment and with professional technology. This is my first experience with development.
“We must not only follow the trend, but also follow the path”
As a traditional manufacturing industry, the market is also undergoing some changes. Looking back on the development of the ceramic industry for more than 30 years, if starting from 1985, the previous development was mainly manufacturing, which we call the focus on production efficiency factory model, and later appeared Market model, from product as king to channel as king.
In fact, the competition today has reached: Do you want the product? Must! Do you want channels? want!
However, we have now entered the user era. We have been talking about this term for many years, especially after the rise of the Internet. In the era of users, users have become the referees and masters of competition, and the decision-making power rests with them. What will happen in the future? Especially the application of Internet technology will bring about another state. In fact, this state is different from other states. Many industries have emerged.
I think the point at which our company is at determines what situations you will encounter in the future and what opportunities you will have. This is the second thought, to develop according to the laws of the market.
Although we have to follow the rules, I think the biggest trend is the "great rejuvenation of the Chinese nation." In 2049, the 100th anniversary of the founding of the People's Republic of China, China has a detailed development plan. China has entered the center of the world. In this general trend, although there are still some problems of one kind or another, they are not enough to affect China's development trend.
I think this is the biggest trend. IWe have to take advantage of the trend, and of course we have to make specific adjustments when it comes to each of us. The weather is the same for everyone, such as this epidemic, but why some people have done well and others have not done so well over the past year has a lot to do with what you did in response to the epidemic. relation. There are factors such as geographical location and people.
We all make ceramic tiles. I think we need to think about: Do ceramic tiles serve our business or the people? For us, ceramic tiles are our products, but for consumers, ceramic tiles are not his products. He comes to our store to buy ceramic tiles more because his house needs to be renovated.
If you serve people, you will truly put the users in your heart. If you only focus on the business, there will be many marketing methods to sell the products and get the money back. This is Our traditional marketing. If you cannot keep your customers in mind and truly create value for them, you will not achieve any results, and there will be many obstacles no matter how hard you work. This is another perspective I want to share with you.
Two days ago, I watched a movie - "The Great Businessman Meng Luochuan", and I have a deep understanding of it. This video talks about the concepts of small business and big business. What is a small business? Some are for their own interests and do not take into account the interests of others. This is a small businessman; a big businessman is for his own interests and also brings benefits to others. A big businessman has the ambition of the world and the energy of the universe. His studies are connected to the great road, and his achievements are connected to the country. Especially now at the stage of the rise of the Chinese nation, it may be more helpful to our development to truly connect with the power of the times.
Of course, there are profiteers who will harm the interests of others for their own interests.
This is another picture I drew myself. It is based on my feelings and may not be accurate. There are many types of our enterprises. The first type is more of a transaction type. You get what you pay for. There is nothing wrong with this. However, when upgrading later, the enterprise will develop a good product to meet the needs. The next level of customer needs is to provide some good solutions in addition to good products; when the company develops to the third level, we have been able to effectively meet the material needs of customers. This is tangible value. At the same time, we Obtained due business benefits.
If we really measure it from the perspective of "big business", we may need to upgrade, not only to solve the material needs of customers, but also to meet the spiritual needs of customers, especially consumption upgrades and customers' spiritual needs. Maybe more. If we meet his needs, we will not only gain commercial value, but also create social value, and the value of our own lives will be greater.
Manage your business with the mindset and spirit of long-distance running
Our ceramic tile business is related to people’s homes, so we have to go back to the users themselves. This is the starting point. The essence of business is exchange. Why do customers want to exchange with you? It must be that we provide customers with cost-effective products. This cost-effectiveness refers to products and services. In fact, the higher the cost-effectiveness, the greater the value created for customers.
President Song also said just now that future development may really require linking to data or the Internet, because in this way you can provide value to customers more accurately and efficiently; in fact, he also mentioned another direction, and he encouraged me to link capital.
Finally, I want to share something with you, which is also my deepest experience. When I was in college, I was a long-distance runner. I participated in the National University Games and almost got a place.
At that time, I had a profound understanding: there are not many skills in long-distance running. What I practice every day is how to speed up the frequency and pace a little bit, and keep persisting! From a certain point of view, running a business is also a long-distance race. Sometimes it is not about taking one step at a time, but about who can run to the end. This is very helpful for calming down when you are impetuous.
We must not only face current challenges, but also be full of hope for the future. I have always felt that the ceramic industry is a sunrise industry, especially now that we are encountering such a good era, we should make a difference.
(The article is reproduced from Ceramic Information)
