Challenges and Opportunities in the 81 Crisis of 81 Taojiang Enterprises in Jiajiang

With the rapid growth of production capacity and blind expansion, the problems of homogenization of products, highly overlapping markets, and deteriorating price competition have also become apparent. In this severe situation in which weak international market demand and suppressed domestic demand this year, the ceramics industry is facing an important turning point in the development of ideas and business models. With the advent of the "winter", a new round of reshuffling has begun to take place in the Jiajiang area. It is understood that there are currently 81 ceramic production enterprises and 187 production lines in the Jiajiang production area, but this year, the number of new production lines does not exceed 10, and the daily production capacity of the entire production area reaches 1,653,500 square meters (excluding Siwa). However, due to the continued sluggish market this year, tile sales have been blocked and there has been a serious overcapacity, and companies have begun to experience serious imbalances in production and sales. Under multiple pressures, Jiajiang enterprises will face challenges from many aspects and there are also opportunities for development.

The Challenges Faced by the Industrial Crisis According to a recent survey conducted by the reporter, the main challenges faced by Jiajiang ceramics enterprises are mainly the first to face the dilemma of “high cost and low profit”. In 2011, the price of raw materials rose generally. At least 30% more than the price in previous years, the entire Jiajiang ceramics company’s profitability space was continuously compressed, and it also meant that its products had lost its competitive advantage. Of course, the common problems in the entire industry, Jiajiang companies can not be avoided, but this is only a beginning, followed by natural gas prices, transportation costs, and labor costs have increased, so that companies face unprofitable situation.

Followed by the weak performance of the current market demand and the impact of foreign ceramic companies. This year's market situation is obvious to everybody. From the beginning of the year to the end of the year, it has been in a tepid state. “The busy season is not prosperous and the off-season is even lighter” is a true portrayal of the weak market demand this year. At the same time, with the continuous rise of domestic ceramic producing areas, ceramic enterprises have gradually formed a regional layout. However, the major causes of corruption in Sichuan ceramic enterprises are Foshan in Guangdong, Dangyang in Hubei, Yueyang in Hunan, Lingxian in Chongqing, and Yimen in Yunnan, so that Sichuanese tiles are excluded in the foreign market and can only be sold in the Sichuan market. Space is severely compressed. According to Zhang (a pseudonym) who works in railway transportation, there are several transportation trains carrying full tiles every day to Chengdu, Sichuan, and then to Other areas in Sichuan. The entry of exotic tiles undoubtedly aggravates the competition in the southwestern market. .

Once again, it faces the competition between Jiajiang ceramics companies and the challenges of the company itself. Competition among enterprises is ubiquitous, there are competitions between the players, and there are unfair competitions. In this year's market downturn, some companies have increased market competition by introducing advanced equipment, improving product quality, design, appearance and brand strength. In addition, other companies use unfair means to drive sales in competition, such as targeted price reduction sales, customer digging, talent digging, and smashing of competitors. In comparison, ceramic companies such as Sichuan Xinzhongyuan, Milano Nuo, Xinwanxing, Jintao, Jianhui, etc., are mainly confronted with how to find a way for the rapid development of enterprises. In a sense, they are The main competitors are not the enterprises in the production areas, but they themselves. How can we take the enterprise development to a higher level and take advantage of it in the market, so as to find a way that suits the development of the enterprise? For Jintao Enterprise, after ten years of development, it has created the only strong brand in Sichuan that can compete with the Foshan brand, and has occupied an absolute market share in the entire Southwest market.

The Opportunities Under the Industrial Crisis Under the severe development situation, Jiajiang ceramics enterprises will soon face a reshuffle of the survival of the fittest. However, they will often be accompanied by development opportunities in the new round of reshuffling.

“Catch the opportunity to meet the challenge” is the key to the current Jiajiang ceramics company must solve, for this reason, companies must strengthen their own “internal strength”**. First of all from the quality to the brand to carry out a full range of upgrades. In the new research and development, color matching, design and other aspects of comprehensive improvement, production must be strict quality control, eliminate shoddy, establish a good quality image, with high quality products to shape a strong brand. Second, improve the marketing network layout and refine the market. Enterprises must develop new sales networks while maintaining the original network. First, the province will deploy points outside the province and deploy outlets to more provinces, cities, and townships. Second, it will refine the market network and implement channel sinking strategies. Form a unified and perfect marketing network. In addition, companies should use the opportunity of weak market sales, organize staff training courses, improve the overall quality of employees, and establish an excellent production and marketing team for the company to meet the arrival of the sales season.

According to industry insiders, the opportunities for the development of Jiajiang ceramics enterprises are mainly manifested. First, the opportunities for enterprise development will be even greater after the shuffle. Under the severe situation, a large number of enterprises will face production suspension, which will result in a large area of ​​market gaps, which will provide part of the market share for winning companies. The second is to have sufficient resources to ensure stable production. According to the government's "support and support, eliminate one batch" policy, in a new round of reshuffling, we eliminated a group of backward companies, concentrated limited resources and allocated them to winning companies. Therefore, in this period, enterprises Can concentrate on production and sales without worrying too much about the supply of resources. Third, the government will introduce supporting policies. The ceramic industry accounts for 71% of Jiajiang's total industrial output value and is the largest pillar industry in Jiajiang County. When the ceramic industry encounters a crisis, the government will formulate relevant preferential policies to support the development of ceramic enterprises.

According to industry insiders, the current Jiajiang government is formulating related preferential policies for the ceramic industry and will be introduced in the near future. The government also hopes to continue to lead the development of the Jiajiang ceramics industry through a series of preferential policies to help companies get out of trouble.