More opportunities than challenges in the Chinese ceramic industry

As a subsector of the home decorative products industry, the ceramics industry has kept a low profile in China. But now its status in the general decorative market is gradually increasing. Whether viewed from the perspective of the quality of staff, the mindset of managers, management practices, or operational processes, the ceramic industry in China is promising. The increasing pressures of environmental regulations, fierce market competition and rising RMB have not dampened the vitality of China’s ceramic industry.

Quality of management to improve

Since the 1990s, the boom in domestic and international demand for ceramics has led to the development of some large-scale ceramic enterprises, which in turn have given rise to some quasi-professional talents in the ceramic industry. The rapid development of China’s electronics industry in recent years is partly due to its effective cultivation of a large number of managerial talents, so the ceramic industry is eager to keep pace to improve the quality of its own personnel, by recruiting managerial talent from other successful industries. .

He said that there are still many family businesses in the Chinese ceramic industry, and the widespread nepotism among these businesses will undoubtedly limit their development in the long run. Although some family businesses are beginning to appreciate the importance of professional managers, trust among them is still lacking. It is not uncommon to see the head of this industry take out an entire management. The key to this problem is probably not whether a business is family-owned or not, but rather whether the owner has the awareness to employ modern management philosophies and methodologies to run the business.

Advanced production techniques

China’s ceramic production at present has been highly modernized and industrialized, and the degree of automation is also increasing. Although management practices and business cultures may differ between different provinces, the use of technologies and production processes are quite similar between companies. This has inevitably led to homogeneity across product styles, with high-volume products but little market differentiation. The high volume could certainly give price advantages to China’s ceramic exports, but they have also attracted a considerable level of anti-dumping criticism from other countries. Many Chinese ceramics are sold as OEM products for foreign brands without origin labels. Otherwise, many Chinese consumers would likely find that their imported TOTO toiletries at home are actually “Made in China.”

Therefore, some industry experts have pointed out that although the manufacturing processes are quite good now, the Chinese ceramic industry still lacks a brand and marketing mindset. On a positive note, some companies have now realized the importance of international management and innovation and have begun to test new management and operating models.

Innovative thinking and design still have weaknesses

Imitation products are rampant in China’s decorative products industry. Many Chinese ceramic companies are good and quick to copy products, and this is the reason why Chinese ceramic representatives are not welcome at some international trade fairs. While Chinese companies can make perfect imitation products, many of them lack innovative ideas and design work. Dr. Zhang Mengyou, CEO of Eagle Brand Holdings, a Singapore-listed Chinese ceramics company, commented that in addition to manufacturing and technological advances, Chinese ceramics companies should also pay attention to innovation in marketing. He said that holistic marketing awareness is not about planning a single campaign or event, but about mobilizing the entire staff of the organization to achieve marketing innovations all the time, hence a quantum leap from “Made in China” to “Created in China”.

contamination problems

Compared with other decorative products such as flooring, furniture and lighting, China’s ceramic industry now faces more controversies and environmental pressures in an already competitive market. The energy efficiency measures recently introduced by the central government will undoubtedly lead to stricter environmental requirements for ceramic companies in most provinces. Whether environmental issues can be adequately resolved is not only the key to a ceramic company’s compatibility with its local environment and resources, but also an important measure of a company’s social responsibility in the community.

Low industry concentration

Compared with many other overseas ceramic sanitary ware or tile industries, China’s ceramic sanitary ware industry still does not have a dominant brand in the market, and this is also reflected in the entire decorative products industry. There are some larger companies, but there have been no real leaders. Although many large companies have established sales networks nationwide, their competitive advantages are often contained in their home regions. Therefore, the Chinese ceramic industry demands more brand influences.

On the other hand, the need for improvements and consolidations can also mean opportunities and perspectives. For those decorative products companies that are trying to build their brands, or those early adopters that have benefited from the boom in capital markets, they certainly have the potential to grow and become stronger. The relocation and restructuring of the provincial ceramic industries and the emergence of regional brands will undoubtedly intensify market competition in certain regional markets. Despite their differences in brand positioning and target customers, the rise of regional brands is likely to have a significant impact on the Chinese ceramic industry in the near future.

Conclusion

The ceramics industry may not be a typical emerging industry, but it still has plenty of opportunities ahead. The strong demand for ceramic products in China, as a result of general economic development and positive real estate demand, has presented an unprecedented opportunity for the ceramic industry. From a macro point of view, there is still considerable room for growth for Chinese household decorative consumptions, and the country’s demographic mix also points to a peak period for family establishments and associated consumptions. The trend of using more fashionable and niche decorative products in China is also generating great potential for the ceramic industry. Therefore, it can be reasonably concluded that although there are certain problems, we should remain optimistic about the prospects for the ceramic industry in China.

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