Looking at the transformation of Chinese ceramics export from OEM to brand output

After more than 30 years of development, Chinese ceramic tiles have a certain market share in the international market. Before 2015, China’s ceramic tile exports have been on an upward trend. However, in 2016, the export volume and export volume of Chinese ceramic tiles ushered in double-digit decline for the first time. In 2017, exports and exports fell again.

At this stage, Chinese ceramic tiles not only face one after another anti-dumping investigation, even once The “price priority route” that is used seems to be nowhere to go. Where is the future of Chinese ceramic tiles? How can we complete the conversion of old and new kinetic energy from low-end processing to high-end? The low-end lock of the value chain is almost the strategy and positioning adopted by the global ceramic tile importing countries for Chinese ceramic tiles!

This has become a difficult problem for ceramic tile companies and traders.

In order to break through the current predicament, a batch of ceramic enterprises have embarked on The road of brand output, but at this stage, the brand output still has problems such as high operating cost and weak brand awareness. Therefore, respondents believe that the government, industry and enterprises should jointly work together for the future output of ceramic brands. work hard.

OEM output dominates

in thirty In the course of development for the rest of the year, before 2015, the export volume and export volume of Chinese ceramic tiles basically increased steadily. According to data released by Qi Bin, executive vice president of the China Building Sanitary Ceramics Association, the export volume of Chinese ceramic tiles has increased from 590 million square meters to 1.139 billion square meters in the nine years from 2007 to 2015. Exports rose from $2.13 billion to $8.33 billion; the average price was raised from $3.61/m2 to $7.31/m2.

However, since 2016, China’s ceramic tile exports have ushered in two consecutive The annual volume and price fell. In 2017, China’s ceramic tile exports reached 821 million square meters, down 23.6% year-on-year; export value was 4.426 billion US dollars, down 20% year-on-year; average unit price was 5.39 US dollars / square meter, up 4.7% year-on-year; 2016 China ceramic brick export volume was 1.074 billion yuan Square meters, down 5.7% year-on-year; export value of 5.53 billion US dollars, a year-on-year decrease of 33.6%; average unit price of 5.15 US dollars / square meter, down 29.5%.

All Chinese ceramic companies or trading companies have always taken the price priority Routes are exported through various channels. Today, OEM exports still dominate, and the mode of exporting their own brands is relatively small. “The price of our products cannot be sold, which is a common problem faced by the ceramic industry.” Liu Yamin, senior engineer of the Inspection and Quarantine Comprehensive Technology Center of Foshan Entry-Exit Inspection and Quarantine Bureau said.

The bottom of the story, or Chinese ceramic tiles are mostly exported by OEM. In the international market, the influence of brand influence is weak. The low-end lock of the value chain is the strategy and positioning of Chinese ceramic tiles in developed countries such as Europe and the United States. Most of China’s ceramic tiles are exported by OEM, so the price is difficult to raise. In the past two years, the average price of Chinese ceramic tiles has dropped from $7.31 per square meter in 2015 to $5.39 per square meter in 2017.

From OEM to export brand

Exhibit export, weak brand influence, price priority…more and more The export situation of Chinese ceramic tiles has developed to a high level. In order to get rid of the low-end lock of the Chinese ceramic tile value chain in the importing countries of the global ceramic tile, a batch of Chinese ceramics enterprises such as marble tiles, Jinyitao, Owenlai, Bode, LA’BOBO ceramic sheets and so on have stepped onto the brand. The road to the output.

At present, Jane’s marble tile products have successfully landed in more than 60 countries including Italy and France. In order to speed up the pace of global layout, since 2015, Jane’s marble tiles have been invited to attend the CERSAIE ceramic sanitary ware exhibition in Bologna, Italy for three consecutive years.

On September 27, 2016, Jane’s marble tiles are 9 Invention, the “GANI IN THEWORLD – the ninth generation of Jane’s marble tile new product launch conference” was moved to the 300-year-old Italian royal castle Palazzo Albergati.

From OEM to export brand, Jane marble tiles continue to be overseas Construction of exclusive areas and specialty stores to provide products while assisting local agents to expand the market.

From OEM to export brand to participate in the global ceramic industry chain division, ten Over the years, Jin Yitao’s comprehensive competitiveness has been continuously improved, and it has also been carefully arranged globally. According to the relevant person in charge of Jin Yitao, the promotion of Jinyitao’s own brand is the focus of its current overseas market construction.

In which, in 2017, Jin Yitao was established through overseas branches and operated overseas. Bravely “going out” in the form of holding a group to build a platform. Jin Yitao has its own stores in Sri Lanka, Bangladesh, Malaysia, India, Australia, the United States, Thailand, Japan and Turkey.

In June of the same year, borrowed from Liansu Group to lead the Global House. The platform, Jin Yitao and many pan-home industry brands “carry out the sea”, also has the exclusive exhibition hall of “KITO” in Sydney, Australia.

LA’BOBO Ceramic Sheet Marketing Manager Xie Yicai told reporters that LA in recent years ‘BOBO ceramic sheet has successfully established dozens of specialty stores in Australia, Germany, Japan, the United Kingdom, South Korea and other countries. Overall, the average export unit price is high and the sales volume is increasing year by year. For the active trade in China and the international market. For companies and international buyers, LA’BOBO’s brand recognition is quite high.

In general, Chinese ceramics brand output is nothing more than two modes ——Professional stores (special sales areas) and direct sales branches. Regardless of whether it is a specialty store (a monopoly area) or a direct branch company, compared with the OEM output, “the promotion of brand value, channel control, product price increase and sales promotion are directly promoted.” Xie Juncai told this reporter.

The operation of the direct branch office is cumbersome compared to the store (special area). However, resources such as brands, channels and customers are in the hands of enterprises, which can promote the long-term development of enterprises and brands.

It’s worth mentioning that Liu Yamin reminds the global ceramic companies that they must Pay attention to the registration of trademarks outside the country. Specialized stores (special sales areas) and direct branches generally use the unified VI image. If the brand trademark is pre-registered locally, this is not conducive to the brand entering and opening up the local market, especially those countries that attach great importance to the protection of trademark intellectual property rights. /area.

Production Sales Localization

Not only ceramic companies, traders, ceramic equipment companies are also seeking development and transformation. From the production side, Weimei Group has invested in the establishment of a ceramics factory in Tennessee, USA. Keda Jieneng and Guangzhou Senda have also built the Tefu Ceramics Factory in Kenya, Ghana, Tanzania and other African countries.

At present, except for Kodak and Nengda, there are already Guangdong, Chinese companies in Fujian, Zhejiang, Hubei and other provinces have invested in building ceramic factories in Africa. From 2011 to 2017, Shanghai Wangkang Holding Group Co., Ltd. is located in Nigeria, Ghana, and Tanzania respectively.Three African ceramic factories were built in Africa; in March 2016, Diyuan Ceramics invested in the Dongfang Industrial Park in Dukam, Oramia, Ethiopia…

In addition, according to relevant insiders, there are also many ceramic companies brewing overseas to build ceramic factories. In October 2017, Chairman Huo Chichang of the Board of Directors of Xinzhongyuan Ceramics Group went to Uzbekistan to report and establish 8 “intelligent and automated” ceramic tile production lines.

For a time, some ceramic companies regard overseas investment and construction as a breakthrough export One of the effective ways of dilemma. It is true that the advantage of overseas investment in building ceramics factories lies in the localization of production and sales, and the reduction of logistics and transportation costs. The most important thing is to avoid various trade or economic barriers such as anti-dumping and tariffs.

But Liu Yamin pointed out that not all ceramic companies, trading companies or ceramic equipment companies They are all suitable for investing in overseas factories. Take Guangzhou Senda as an example. It is an international trading company approved by the State Foreign Trade and Economic Cooperation Commission to enjoy import and export management rights. It has more than 10 years of operating experience in Africa. Not only familiar with the local culture and culture, but also have local employees, and the local sales network, channels and resources are very rich.

Long-term export of products from China, the cost of tariffs, logistics and other intermediate links is extremely high, In order to maximize profits, Senda plans to set up a ceramics factory in Kenya in 2015. In the process of equipment selection, it will contact Keda Jieergy. The two sides will hit it off and form a joint venture to establish Tefu Ceramics Co., Ltd. Establish ceramic factories in African countries such as Kenya, Ghana and Tanzania.

Therefore, respondents confessed that it is important to invest in building ceramic factories overseas. And be cautious, you must make other layouts when you are familiar with local laws and regulations, employment conditions, and local culture.

Own brand output is difficult >

A few days ago, Huang Yongguang of the Guangdong Provincial Department of Commerce spoke at the national brand export declaration specification training class Due to the long-term processing trade in Guangdong enterprises, the brand effect is not prominent. Although the cost increase is basically in sync with the increase in the selling price, the effect of the brand effect on improving the profitability of foreign trade is still not outstanding.

In the past two years, the transfer of processing trade has accelerated, with Guangdong’s share A quarter of the country has a strong pressure for steady growth in foreign trade. The policy focuses on stable share and investment attraction, which has reduced the space for brand policy. For a long time, the existence of a large number of foreign trade agents in Guangdong, the existence of a large number of processing and OEM, the existence of a large number of foreign trade small and medium enterprises, the meager profits of enterprises, the pressure of production and short-sightedness have made the creation of international brands difficult:

(1) The international recognition of the brand needs to be improved. Many brand products are not recognized and accepted by overseas merchants because of their low popularity and insufficient influence. Brand companies are desperate to export more and more without OEM. According to the company, many international brands have strong strength and capital, strong R&D and design capabilities, and a mature marketing system. The importers are also very strong in distribution. They only hope that Chinese companies can provide high-quality products at low prices. Does not accept Chinese brands, thus limiting the space and initiative of the development of independent brands.

(2) Corporate brand awareness is weak. Some enterprises believe that their own brand investment is large, long time, slow effect, high risk, not as good as OEM production, and the benefits come quickly; some enterprises do not register trademarks in the brand export market, the trademark protection awareness is weak; more corporate brand building It has only stayed at the basic work of foreign trademark registration, and brand management has not yet become a development strategy of the company.

(iii) High brand operating costs. In addition to having a certain core competitiveness and mature product quality, creating a private brand requires a lot of money and time for the brand investment. Overseas marketing costs are high. If you enter the European and American markets with your own brand, you need to establish a corresponding marketing network and after-sales service, and you must have a marketing team familiar with local culture and language, andThe operating expenses of the brand are very large, and the risk of creating an international brand is large and the cycle is long. It is difficult for small and medium-sized enterprises to bear independently.

Chinese ceramics companies face the same difficulties because of long-term OEM output Chinese ceramic tiles have been labeled as “low-end in the value chain”. It is difficult to reverse the image and export products in the form of own brands. However, the Chinese ceramic industry should still export the brand to the outside world. Worth waiting.

Country, industry, and enterprise linkage

“In recent years, Jin Yitao has laid out the global share of private label exports. Constantly expanding, this is not only the vision of enterprise development, but also the project promoted by the state.” Liu Yi, the brand department of Jinyitao International Trade Co., Ltd. said.

On March 30th, the national brand export declaration specification training class started in Hangzhou The General Administration of Customs, the Ministry of Commerce’s anti-counterfeiting office, and industry experts gave special lectures on export brand declaration and brand building. Representatives from Guangdong Provincial Department of Commerce Huang Yongguang and Jinyi Ceramic Tile attended the training class.

Visible, not only companies are trying to export brands, but the state also encourages corporate brand output. Huang Yongguang believes that in response to the low-end locking strategy of the value chain, China should establish an internationally influential rating agency and establish China’s own brand evaluation organization, which is to seize the strategic high point of creating a brand to create a good soil and atmosphere for brand internationalization. Chinese brand drums and calls.

In addition, to increase the international influence of Chinese ceramic brands To allow ceramic enterprises to better export their brands, respondents also offered advice and suggestions from two perspectives: industry and enterprise.

On the level of the ceramic industry, Liu Yamin believes that ceramic enterprises and industry organizations must “Building a group”, the “China Ceramics” brand is launched internationally, just like the “Foshan Ceramics” regional brand in China. “In short, it is necessary to jointly develop enterprises, industry associations, and social groups to set higher-than-international evaluation standards, and conduct strict evaluation or certification through this standard to screen ceramic products with excellent quality and novel colors. One enterprise can be a It can also be N models, and then gather together to produce the ‘Chinese Ceramics’ brand, to build a quality benchmark, and compete with Italy, Spain and other products internationally (except for design).

p style=”text-indent:2em;”>In addition, the China Ceramics Exhibition can no longer be a stage for Chinese brands to dance alone, and must find ways to attract more Italy, Spain, etc. The national outstanding ceramic brands will participate in the exhibition, so that the China Ceramics Exhibition will receive the attention and attention of international buyers. At the same time, Chinese ceramics enterprises must use the exhibition to achieve “going out”, and more active in the exhibitions in Valencia, Spain, Bologna, Italy, etc., changed from “export orders” to international marketing transformation, and explored diversified markets.

From a business perspective, you need to know more about the market status of export destination countries, including products. With building requirements, customs policies, etc. Chinese ceramic enterprises can’t just stay at the level of selling bricks, and they should go deep into the market to subdivide the application range of products. From the design and application, we should consider the color and fancy of the product; from the space application, we should consider the physical properties of the product.

From the perspective of the proportion of ceramic tiles (export volume) flowing to various places in 2017, In order: 60.31% in Asia, 14.59% in Africa, 9.3% in North America, 8.63% in South America, 4.11% in Oceania, and 3.04% in Europe. Are the Chinese ceramics enterprises clear about the customs clearance policies and construction requirements of these countries/regions? Whether these countries/regions sign preferential trade agreements with China, Chinese ceramics companies must know that in order to better export brands and maximize profits.

Deputy Director of the Customs Department Lu Tongzhou also attended the National Brand Export Declaration Training Course It is said that a considerable number of enterprises in China are unclear about the customs declaration and management policies for export export goods, including export benefits. In order to protect the interests of brand exports, Lu Tongzhou introduced three steps for export enterprises to enjoy: the first stepTo determine whether the export goods can enjoy preferential tariff treatment; the second step is to apply for the certificate of origin; the third step is the export customs clearance management.

Although the Chinese ceramics brand has a long road to export, but the future can be expected, the country, the industry We must work with companies to focus on brand output.

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