More Opportunities Than Challenges in the Chinese Ceramic Industry

More Opportunities Than Challenges in the Chinese Ceramic Industry

As a part of the decorative home products industry, Ceramics have been largely ignored in China. But its position in the overall market of decorative goods is slowly rising. If it is considered as a matter of staffing quality, managers’ attitudes, management techniques or operational procedures, the ceramic industry in China is one that looks promising. The adversity of regulatory regulations on the environment, the fierce market competitions and increasing RMB are not delaying the potential in China’s Chinese ceramics industry.

The management quality will be improved.

In the 90s, the growing demand for domestic and worldwide demand for ceramics led to the creation of several large-scale ceramic firms that, in turn, resulted in the birth of some semi-professional talent in the industry of ceramics. The rapid growth of China’s electronics industry over the past few times is large because of its successful cultivation of a wide range of management talent; therefore, this industry of ceramics is determined to take the next step to increase its own personnel quality by acquiring managerial talents from other industries that have been successful.

Although there are many family-owned businesses that are in the Chinese ceramic industry, the high level of nepotism within these businesses will undoubtedly hinder their development over the long run. While some family-owned companies are beginning to realize the significance of having professional managers, the trust between them is not there. It’s not unusual to observe a whole management group being dismissed by the head of the business. The issue isn’t whether a business is family-owned and/or not. It’s rather whether the business owner is aware of modern management theories and methods to run the company.

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Innovative production methods

China’s ceramic industry is highly modernized and developed, and increasing automation levels are also growing. At the same time, the fact that management practices and corporate culture might differ across provinces, the usage of technology and manufacturing processes are remarkably identical across different enterprises. This has led to a homogeneous product style which has resulted in high volume but little differentiation in the market. The large volume may provide a competitive price for ceramics exported from China. However, they’ve also received a lot of anti-dumping complaints from other nations. A large portion of Chinese ceramics is offered as OEM items for foreign brands but without origin labels. If they were not, many Chinese consumers might discover that the imported TOTO toiletries at home are “Made by Chinese”.

So, industry insiders have said that, even though the processes for manufacturing are very efficient, however, the Chinese ceramic industry is lacking branding and marketing mindset. However, certain companies have realized how important international business managing and innovation is and began to test innovative models of managing and operating models.

Creative thinking and design have weaknesses.

The use of copycat products is commonplace in the market for decorative products of China. A lot of Chinese ceramic manufacturers are adept and quick to copy items, and this is the reason Chinese ceramics aren’t welcome at many international trade exhibitions. Although Chinese ceramic companies are able to create perfect replicas of products, a lot of them lack new concepts and designs. Professor Zhang Mengyou, CEO of Eagle Brand Holdings, a Singapore-listed Chinese ceramic company, stated that, in addition to technological and manufacturing advancements, Chinese ceramic companies should also be attentive to marketing innovations. He said that complete marketing awareness does not mean creating a single campaign or event. It is instead about engaging all employees of the organisation to create marketing innovations constantly, resulting in the jump in the direction of “Made from China” and “Created from China”.

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Problems with pollution

In comparison to other products decoration like furniture, floors and lighting in comparison to other decorative products like lighting, floor and furniture Chinese pottery industry is subject to more environmental pressures and controversy in an already highly competitive market. The recently introduced energy efficiency measures of Central government officials will, without doubt, bring more rigorous environmental standards for ceramic businesses across the country in all provinces. How environmental concerns are able to be resolved properly isn’t just the key to a ceramic firm’s ability to work with the surroundings and sources, but it is also an important aspect of the company’s social responsibility in the local community.

The concentration of industries is low.

As compared to the other international tiles or industries of ceramic sanitaryware In comparison to other industries, in comparison to other industries, the Chinese ceramic sanitaryware industry does not have a dominant market brand, and this is evident in the entire decorative product sector. There are some larger businesses, but there haven’t been any leading companies. At the same time, many big corporations have established national sales networks; however, the competitive advantage they have is usually concentrated in their local regions. This is why it is no surprise that the Chinese Ceramic industry has been calling for greater brand influence.

However, the necessity for improvement and consolidation can also lead to opportunities and potential. For the decorative product firms that are working to develop their brand or early movers that benefit from the boom in financial markets, they could grow to be larger and more robust. The move and reforming of the local industries and the growth of local brands will surely increase competition in specific regions. Even with the distinct positioning of their brands and their target market, the increase in regional brands will have a significant impact on the Chinese ceramic industry in the near future.

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Conclusion

The ceramics industry may not be a typical dawn sector, but it has plenty of potentials. The high demand for ceramics in China as a result of economic growth overall and the growing real estate market has created an incredible opportunity for the ceramic industry. From a macro perspective, there are plenty of opportunities for growth in decorative consumption of Chinese householders, and the demographic mix of the country is suggesting a peak time for family-owned establishments and related consumption. The increasing use of stylish and unique decorative products in China is also creating huge potential for the industry of ceramics. So, it is reasonable to conclude that, even though there are some issues, we should be positive about the future of this industry of ceramics in China.

 

 

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