An average of 50 fewer ceramic factories per year!Manufacturers survive 9 suggestions

Mondo Social Updated on 2024-01-31

Without the written permission of the ceramic information network, this article is prohibited, otherwise it will be regarded as infringement.

Since 2014, the national building ceramics production enterprises reached a peak of 1,452, and began to be eliminated and reduced year by year: in 2017, it was reduced to 1,366, in 2020 it was reduced to 1,155, and in 2022, there were still 1,040 ......

In just 8 years, there was a net decrease of 412 ceramic factories (an average decrease of about 50 per year).However, between 2015 and 2022, a total of 159 new ceramic factories were built across the country. This also means that a total of 571 ceramic factories have been eliminated in the country in the past eight years.

At present, the market demand of the ceramic industry has entered a downward channel, and it will be further reduced in the future. In the context of the reality that the amount of ceramic tiles is far greater than the market demand, the degree of overcapacity is intensifyingObviously, the number of existing 1,040 ceramic factories is much more than the carrying capacity of the current and future market. In addition, the policy level has higher and higher requirements for the energy structure, energy consumption level and green production of ceramic tile production.

Image display **UnrelatedUnder the pressure of policy + market, the number of ceramic enterprises will continue to decrease year by year in the next few yearsA number of ceramic factories with weak competitiveness, low efficiency and poor management will face the fate of changing hands, being acquired or directly withdrawing, and accelerating the improvement of industry concentration.

"Survival" has become the primary task of many ceramic enterprises. So, how do you "survive"?

1. Do not pursue scale, dilute revenue and market share, and focus on profit and cash flow.

Several leading enterprises in the ceramic industry have put forward sales targets of 10 billion yuan in the first two years.

Judging from the current situation, it is better to forget about the goal of 10 billion, take profit and cash flow as the first goal and KPI assessment of the enterprise, and even the assessment indicators of each sales area and every salesman have been transformed from sales to profits, and the selling price, return and other indicators are placed in front of the delivery volume. Lay a good foundation, practice internal skills, and let the enterprise survive first, maybe the peak will turn around, and the goal of 10 billion yuan will come unexpectedly.

Second, the business strategy is concentrated, the non-core business is contracted, and those business lines that have not made money or even lost money for a long time, including branches, business divisions and project teams.

Especially those businesses that have been operating for many years and have not improved, those that only have inputs but no outputs, and those that do not see the future. "Survival with a broken arm" is painful, and when it is interrupted, it will be chaotic. The hesitation at the critical moment will make the enterprise lose a lot of money and eventually miss the opportunity to turn around.

Image display **Unrelated3. The engineering business abides by the principle of risk first.

With the increase in the risk of thunderstorms in real estate enterprises, many leading ceramic enterprises have been affected by the engineering business, and their revenues and profits have plunged, which in turn has caused a shortage of cash flow for enterprises. In order to win the project, in order to win the bid, the kind of sales model of competing to reduce prices and adding a margin for an ultra-long account period is an unfair trade rule imposed on the head of the first business by the real estate giants from the beginning. Ceramic enterprises should dare to say no to these unfair and unequal rules, otherwise, blindly seeking perfection may be exchanged for the destruction of the enterprise.

Fourth, sort out the product line, and the leading products of the enterprise should shift from sales-based to profit-oriented.

We will continue to strengthen our high-margin products and significantly reduce those products that have contributed only revenue and not profits for a long time. The ceramic industry is an industry that pursues personalization, with many specifications, many categories, and many colors, resulting in high SKUs, which bring great difficulties to scheduling, inventory, and sales, and push up the operating costs of enterprises. Many companies pursue a full-category strategy, which seems to be large and complete, but they cannot form core advantages and product characteristics, so that enterprises can do it in the competition. In times of difficulty, it is advisable to drastically reduce these marginal products, even if it is to develop new products, at a moderate scale.

Fifth, improve efficiency, adhere to the principle of efficiency first. In the information society, efficiency always comes first.

In particular, the decision-making department of the enterprise must have a smart sense of smell, accurate vision, fast decision-making, and detailed deployment. By optimizing the organizational structure and human resources, simplifying the process, streamlining administration and delegating power, the "high turnover" of the enterprise is realized. By reducing the inventory of raw materials, finished products and distributors, we can accelerate the flow efficiency of people, money and materials, and win more market opportunities by improving the cost performance of products and services.

6. Reduce costs and increase efficiency, and reduce all unnecessary expenses.

In the operation of enterprises, on the one hand, it is necessary to open up the source and on the other hand, it is necessary to reduce expenditure. Every project and every expenditure should be evaluated on whether it better meets the needs of customers. Especially for those advertising and branding that don't see the benefits, it's better to save money and invest in product development and customer returns.

7. Work certainty.

Don't keep thinking about "** or "looking for opportunities in crisis", and avoid blind expansion and investment, today's venture may be tomorrow's trap. In order to return the operation to the essence, it is necessary to recognize the basic laws and underlying logic of market operation, conscientiously do a good job in production, research and development, sales and cost control, and do not let some nihilistic and lively things confuse the direction.

8. Adhere to limited innovation, run in small steps, and iterate and improve.

Don't think about cornering and disruptive innovation. Looking back on the development of the building ceramics industry for decades, there are very few truly revolutionary original products, most of which are micro-innovations in specifications and surface decoration technology.

The development of the industry has already entered a mature period, the innovation of ceramic tile products has met the ceiling, and the gap between different brands, enterprises and production areas is mostly in the details. Therefore, for the vast majority of ceramic enterprises, do not always think about leading the industry in the field of innovation, after all, it is necessary to invest a huge amount of money, which requires a lot of trial and error costs, but needs to calm down, the blade is inward, control the quality, serve customers well, and win the reputation with quality, which is far more solid and longer than innovation.

9. Develop customers and operate customers together.

During the downturn of the industry, customers and orders fell sharply, but the cost of new expansion rose sharply. Enterprises may wish to target their past customers and provide them with appropriate value-added services, so as to attract new customers through existing customers. You must know that in the information society, the characteristics of communities, circles, and classes are more obvious, and if you say your product ten times, it is better to say it once than the customer to say it again.

Once a customer is not satisfied, the quality of its brand in Douyin, Toutiao and other channels will have a strong impact on its brand building over the years. Therefore, enterprises should strengthen the awareness of operating customers, enhance customer stickiness, increase their repurchase rate, and finally let them become brand fans and volunteer propagandists. Only in this way will a strong brand potential energy be formed, so that enterprises can have a little more bargaining chips to "survive" in this life-and-death knockout game.

End of text).

Image display **Unrelated

Recommended viewing

It will be put into production next year!Hebei has built 5 new ceramic tile production lines, rock slabs, medium slabs, and paving stone ......

At the end of the year, the peak of job hopping!Ceramic people, don't overestimate yourself, don't underestimate the platform.

Related Pages