More Opportunities Than Challenges in the Chinese Ceramic Industry

Like a sub-sector of the house decorative products industry, the ceramic industry has stored a minimal profile in China. However its status within the overall decorative marketplace is progressively rising. Whether it’s viewed in the outlook during staffing quality, manager mindsets, management practices or operational processes, the ceramic industry in China is really a promising one. The amounting pressures from ecological rules, fierce market competitions and rising RMB haven’t delay the force from the Chinese ceramic industry.

Management quality to become improved

Because the 1990s, the booming domestic and worldwide interest in ceramics had brought to the introduction of some massive ceramic companies, which had created some quasi-professional talents within the ceramic industry. The rapid growth and development of China’s electronics industry recently is partially because of its effective cultivation of a lot of management talents, therefore the ceramic market is keen to follow along with the key to enhance its very own staffing quality, by recruiting management talents using their company effective industries.

Getting stated that, you may still find many family-run companies within the Chinese ceramic industry, and also the prevalent nepotism of these companies without doubt place a constraint on their own lengthy term development. Even though some family-run information mill beginning to understand the significance of professional managers, the trust together continues to be missing. It’s not unusual to determine a whole management being removed through the boss within this industry. The important thing for this concern is most likely not about whether a business is family-run or otherwise, but about if the owner has got the awareness to use modern management philosophies and methodologies to handle the company.

Advanced production techniques

China’s ceramic production today continues to be quite modernised and industrialised, and also the extent of automation can also be growing. Despite management practices and company cultures may vary between different provinces, using technologies and production processes are very similar among companies. It has inevitably brought to homogeneity between product styles, rich in volume but low differentiation products on the market. Our prime volume could certainly give prices benefits of ceramics exports from China, but they have also attracted a substantial degree of anti-dumping critique using their company countries. Many Chinese ceramics are offered as OEM products for foreign brands without any origin labels. Otherwise, many Chinese consumers would most likely discover that their imported TOTO toiletware in your own home are really “Produced in China”.

Therefore, some industry insiders have noticed that as the manufacturing processes are very good now, china ceramic market is still missing a branding and marketing mentality. On the positive note, some companies have finally realized the significance of worldwide management and innovation and started to pilot new management and operational models.

Innovative thinking and style still weaknesses

Copycat goods are rampant within the decorative product industry of China. Many Chinese ceramic information mill good and quick at copying products, and because of this , why Chinese ceramic representatives aren’t welcomed at some worldwide trade shows. While Chinese companies could make perfect copycat products, most of them are short at innovative ideas and style works. Dr Zhang Mengyou, Chief executive officer of Bald eagle Brand Holdings, a Singapore-listed Chinese ceramic company, commented that aside from peppa pig developments, Chinese ceramic companies also needs to focus on marketing innovation. He stated that comprehensive marketing awareness isn’t about planning for a single campaign or event, but about mobilising all organisational personnel to attain marketing innovations constantly, hence a quantum leap from “Produced in China” to “Produced in China”.

Pollution issues

When compared with other decorative products for example floor, furniture and lighting, china ceramic market is now facing more ecological pressure and controversies within an already competitive market. The recently introduced energy-efficiency measures through the central government won’ doubt result in tighter ecological needs on ceramic companies in many provinces. Whether ecological issues could be correctly solved isn’t just the important thing to some ceramic company’s compatibility using its local atmosphere and sources, but additionally an essential way of measuring a company’s social responsibility locally.

Low industry concentration

Compared with other overseas tiles or ceramic sanitaryware industries, china ceramic sanitaryware industry still does not possess a market dominant brand, which is also reflected within the whole decorative products industry. There are several bigger size companies, but there weren’t any true leaders. Although a lot of large companies established nationwide sales systems, their competitive advantages are frequently found in their house regions. And so the Chinese ceramic market is with more brand influences.