Status Analysis of China Ceramic Tile Industry

Companies Compete on Porcelain Tile Price

With the rising of fuel prices and the relative shortage of ceramic raw materials, ceramic porcelain tiles production costs have been rising all the time. Rising costs make many companies have to face selling at a loss, and build a brand, developed a high degree of difficulty of the new product, targeting the high-end market with high profit margins become the inevitable choice for some enterprises. Ceramic industry increasingly fierce competition, high raw material prices, which also makes some companies using inferior raw materials, price cuts degraded the quality of their products simply cannot be guaranteed. The price war is not as intense as before, but still more domestic or foreign enterprise pricing strategy to squeeze the same market, undoubtedly fancies, is round loser. Especially that the glazed porcelain tile market, the cost rising is more and more intense.

Overcapacity of Ceramic Porcelain Tile Industry

At present, the tile industry is still facing the situation that enterprises blindly increase production capacity, and the new enterprises are emerging, the war in full swing, and innovative production and many other issues. Since now the unglazed porcelain tiles industry has not yet matured and normative, and the market demand is great, which provides living space for many small businesses. Currently, the powerful porcelain tile companies in China such as Dongpeng, Wrigley, Anwar and Xindong source all are regarded as a business development strategy aimed at the high-end markets, strengthen the production of corporate self-regulation of their own behavior, from raw materials to the production process, strict control to ensure product quality and stability and it depends on whether the product is environmentally friendly or not. Enterprises have to improve the technological content of products to increase innovation in order to achieve sustainable development through every effort.

Law of the Jungle Phenomenon in Tile Industry

After the unannounced visits to the ceramic porcelain tile market the reporter found that technical threshold of the new GB elevation is mainly facing to the small businesses, and as for the large enterprises with well-known brands, the implementation of the corporate internal standard is much higher than the national standard. Such as the 600mm × 600mm polished porcelain tiles side straightness error value, according to national standards conversion, it is ± 1.2mm, and the general internal control of enterprises are about 0.5mm, and some even up to 0.2 to 0.3 mm. It is reported that when the well-known brands do product comparison, they often use the corporate standards, Euro II standards and national standards for comparison, usually the corporate standards are higher than the other two standards. With the continuous development of the market, the well-known enterprises will be more and more powerful, market share will be increasing, and the small businesses would have to withdraw from the market.

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