The ex-factory price of ceramic tiles was exposed? Is it really impossible to sell bricks online? …Click here to learn the truth｜What to watch last week

[Comment from Zhongtaojun] Brother Chan strongly agrees with the view that online sales are an inevitable trend in channel change. However, Brother Chan believes that the key to being able to grasp the inevitable trend of online sales lies in offline follow-up services. If we cannot open up the "last mile" of logistics, we cannot be user-oriented and provide consumers with a series of design, layout and even more considerate services. In the past, entering e-commerce was an empty talk, and now embracing new retail is still an empty talk. Without the support of brand accumulation and offline services, there will be no way out for ceramic companies to blindly follow the trend and sell bricks online. Otherwise, they will only get the results of "the data is very watery and the results are highly variable."

2

Will the epidemic affect the conversion of coal to gas in the ceramic industry?

According to information released by the Qingyuan Municipal Government website, as of now, 150 of the city's 169 ceramic enterprise production lines have completed transformation tasks, 6 production lines have been dismantled, and 13 production lines have been closed and discontinued. Liu Xinmao, director of the Qingyuan Municipal Ecological Environment Bureau, said at the meeting that all counties (cities and districts) must clarify their attitudes, fulfill their main responsibilities, and take multiple measures to ensure that companies that have converted to natural gas use natural gas to the letter.

According to "Ceramic Information", in accordance with the requirements of the "Zhaoqing City Implementation Plan for Guiding and Supporting the Transformation and Upgrading of Ceramic Enterprises" issued by the Zhaoqing Municipal Government on September 15, 2019, the city is strictly implementing this plan and requires that no natural gas is used in the production area. All ceramic companies that produce ceramics cannot resume production. For example, ceramic companies that have completed the conversion of coal to gas in their production lines must pass the inspection and acceptance by relevant departments such as the Gaoyao District Ceramics Office before they can resume production.

Will there be any changes in the conversion of coal to gas for ceramic enterprises? How affected will it be during the epidemic?

Xian Jiantang, Director and Vice President of Qianghui Enterprises believes that “the ecological chain of each product will follow an irreversible comprehensive upgrade, and the pressure of environmental protection requirements has intensified some of the weak vitality in the industry. Many manufacturers are leaving the market early, which is also an inevitable process in China's world factory stage. In this environment, the increase in costs will make companies think about upgrading product positioning and upgrading to improve competitiveness.Stabilizing channel sales and finding its own core product positioning is a key to the values ​​​​of each ceramic company. Before April this year, our Qianghui Enterprise also invested more than 100 million to upgrade the production line. The epidemic will accelerate the elimination of backward production capacity, and the ceramic industry will enter a new competitive landscape this year. Whoever can control the management rights of the channel chain and platform chain will win. By cultivating internal strength, enterprises will have the confidence to face this challenge.

An industry insider who did not want to be named said: "Although coal-to-gas conversion will increase business costs, it is a certainty. Production lines such as Zanhuang and Gaoyi in Hebei production areas were actually ordered last year to require all production lines to Complete coal-to-gas conversion. The epidemic is not a factor affecting the implementation of coal-to-gas conversion. The main obstacles are the lack of gas supply and the high price of natural gas. ”

[Zhongtaojun Comments] Regarding the environmental protection issues in the ceramic industry, Brother Chan has actually expressed his opinion many times: the government’s environmental protection measures in the ceramic industry are not only to meet the needs of The people's pursuit of green water, blue sky and clean air is also driven by the need to eliminate backward production capacity and resolve excess production capacity. This has long become an irreversible development trend. If you don’t keep up with the trend, you will only face the fate of being eliminated. This can be seen from the fact that Gaoyang District has not relaxed its strict requirements for coal-to-gas conversion during the epidemic. If there is no strong determination to invest in environmental protection, there is only a dead end to withdraw from the stage of history; if you have the determination and strength, it is better to turn long-term pain into short-term pain, achieve environmental protection and intelligent production transformation in one step, and disrupt the industry. Get the upper hand in the cards. As for whether the coal-to-gas conversion in the ceramic industry should be "one size fits all", in fact everyone knows it, but it doesn't matter what the ceramic companies think, it depends on what the government does. Although "one size fits all for environmental protection" has been banned at the national level, the key to what is the standard for "one size fits all for environmental protection" and how to avoid one size fits all depends on how local governments grasp the scale.

三

Will the epidemic have limited impact on the ceramic industry?

February 27Peng Changhua, general manager of Shunhui Ceramics said at the "First Ceramic Industry Online Marketing Forum" that "the impact of this epidemic on the industry will not be "Especially big", "Our industry belongs to the consumption of durable goods, it is not the consumption of fast moving consumer goods. It is relatively time-sensitive. Once you miss it, you will miss it."The demand disappeared immediately, so industries such as restaurants, tourism, hotels, film and television, transportation, etc. were greatly affected. Our industry belongs to a category where consumer demand can be temporarily suppressed. Because there is a high probability that this epidemic will not last forever. After all, our country’s current economic strength and medical level are very strong. Under such circumstances, when the epidemic is over, these consumptions will still have to be carried out, and the decorations that need to be renovated will still need to be renovated. Even after the epidemic is over, there will be an explosion period in sales, so I personally think that this epidemic will have little impact on our sales. It will be very big."

Will the epidemic really not have a great impact on the sales volume of the ceramic industry?

Zhou Yan, General Manager of Laideli Ceramics Brand believes, “At the end of 2019, all ceramic companies had made plans for the coming year, but an epidemic disrupted everyone’s plans. The work needs to be readjusted and sorted out. Now that the epidemic situation is gradually improving, the ceramic terminal market is slowly recovering, but it will take a while. Therefore, I think the sales of each brand will definitely be affected in the first half of the year. As for the market share, the terminal market will still be there. The competition in the market will intensify. The key depends on each brand's marketing operations and investment in the market, as well as whether there are any changes in end customers after the epidemic. We must pay close attention to it and make directional guidance measures as everyone does at this stage. Playing online live broadcasts and accumulating customers is actually moving in a good direction. I hope that the industry will get better, and everyone is really good."

An industry insider who asked Zhongtaojun to give him a pseudonym as Passerby A believes that “the biggest problem caused by the epidemic to ceramic manufacturers is the rising prices of raw materials, unstable prices, and lack of supply. At the same time, upstream companies and manufacturers are affected by Due to the impact of the epidemic, there are cases where employees fail to arrive at work in time."

[Zhongtaojun Comments] First of all, it must be stated that Brother Chan agrees with the statement that "the epidemic will only delay but not cancel the demand for ceramic tiles", that is, he believes that the epidemic will not have an impact on the ceramic industry cause fundamental changes. But "only your feet know whether the shoes fit properly." Each ceramic company and each ceramic practitioner is different, which determines that each individual will be affected differently by the epidemic. Although the epidemic will not bring about fundamental changes, it will definitely intensify the reshuffle of the industry, making the strong stronger and the weak weaker. Crisis may only be a roadblock for the weak, but it is a stepping stone for the strong. Secondly, "the epidemic will only delay but not cancel the demand for ceramic tiles" is not absolutely correct. Some people may have used up a lot of savings because of the epidemic, and some people may have their mentality and life changed by the epidemic. The variables caused by the epidemic cannot be ignored. Yes, we cannot blindly trust consumers’ plansCeramic tile consumption will definitely continue to exist. Therefore, in the face of the epidemic, ceramic companies and ceramic practitioners must prepare for the worst and do their best.

What should dealers do if ceramic tile prices increase during the epidemic?

According to "Ceramic Information", since February 29, many ceramic companies in ceramic production areas such as Foshan in Guangdong, Gao'an in Jiangxi, and Jiajiang in Sichuan have issued notices of price increases for polished tiles, marble tiles, and polished tiles. Bricks, antique bricks and other products have experienced price increases to varying degrees.
Yuanfang, what do you think?

Regarding this topic, people in the industry have different opinions, which is very lively: some people say "it will rise every year", some people say "the price of ceramic tiles in stock is rising even if they can't be sold", some people say "it doesn't matter if the price goes up, sell Do you have to do it?” Some people said, “Reducing costs internally will crush suppliers and contractors. How long will the price of products last? How high is the quality?” Some people said, “If those ceramic tiles that cut corners disrupt the market, the more they increase, the more expensive they will be. Okay." Some people said, "If the price increases, we won't buy goods. The goods in the warehouse are enough to sell for two months." Others said, "MD prices have increased, will wages in ceramic factories also increase? Anyway, pork has increased last year. For ordinary workers, It’s useless to say that the big boss of TMD has made a fortune.” “Some people say that they are still thinking about raising prices in the face of a national crisis. I hope God will accept all the people who raise prices.”…

【Zhongtaojun Comments】 As for the price increase of ceramic tiles, Brother Chan thinks that people in the industry can just laugh it off—laughing helplessly. What's going on now? The epidemic not only affects the resumption of work of ceramic companies and dealers, but also affects the business of home furnishing stores. Most importantly, it also affects consumers' purchase of bricks for decoration. Affected by the epidemic, almost no one is currently buying bricks in full (purchasing bricks online only requires a deposit, there are still variables), consumers simply do not dare to rush to decorate, and the epidemic may have consumed part of their savings. In this case, ceramic tiles are still available. Want a price increase? Could it be that no one bought it at the original price, but when the price increased, some people were eager to buy it? Ceramic tiles already have overcapacity and market saturation. Coupled with the severe inventory backlog affected by the epidemic, this is the most critical factor affecting ceramic tile sales. As long as the most critical factor does not change, no matter whether it is a price reduction or a price increase, it will not fundamentally change the market. Sluggish status quo. But nothing can be saidHaving said that, the price increase of ceramic tiles during the epidemic is also a helpless move by ceramic companies. The costs of raw materials, packaging materials, fuel, labor, etc. have all increased. Can the price of ceramic tiles not increase? But don’t be naive and think that once the price rises, consumers will think that supply exceeds demand and there will be no more bricks in the world, and profits will follow; you won’t be able to sell anything! On the one hand, selling bricks online requires special offers to attract consumers, but on the other hand, prices must be increased. I wonder how dealers can continue to play this game?

Wu

Why are excellent companies able to grow against the trend in the cold winter?

On March 5, the highest intraday price of Mona Lisa, a listed ceramic company, was 25.45 yuan. The stock price hit a new high in the past year. The latest price as of the close was 25.10 yuan, an increase of 4.63% from the previous trading day. The total transaction amount for the whole day Reaching 208 million yuan, the turnover rate was 6.14%. Calculated based on the latest closing price, its total market value is 10.123 billion yuan.

Previously, Mona Lisa (002918) released its 2019 performance report on February 21: operating income during the reporting period was 3.804 billion yuan, a year-on-year increase of 18.57%; operating profit was 510 million yuan, a year-on-year increase of 21.97%; The total profit was 509 million yuan, a year-on-year increase of 21.25%; the net profit attributable to shareholders of listed companies was 436 million yuan, a year-on-year increase of 20.30%; the basic earnings per share was 1.08 yuan.
On February 28, another listed building materials company, Diou Home Furnishing, also released a 2019 performance report: In 2019, the company achieved total operating income of 5.57 billion yuan, an increase of 29.29% over the same period last year; the net profit attributable to shareholders of the listed company was 567 million yuan, an increase of 48.97% over the same period last year. Its controlled subsidiary Oceano achieved operating income of 5.006 billion yuan in 2019, an increase of 35.97% compared with the same period last year; it achieved a net profit of 505 million yuan, an increase of 42.05% compared with the same period last year, excluding the impact of consolidated amortization expenses of 22.0697 million yuan. Afterwards, net profit was realized at 483 million yuan.

【Zhongtaojun Comments】No one participated in this topic. Brother Chan speculated that it may be because everyone in the ceramics industry is more practical and only wants to focus on their own one-third of an acre of land and does not care much about other companies; it may also be that this topic is relatively positive and everyone may like it on the surface. Talk about positive energy, but actually prefer to focus on other people's negative news. In the cold winter, subject to the epidemic, the ceramic industry can be said to be even worse. Why are the two ceramic companies Oceano and Mona Lisa able to reverse the trend?Spur on momentum? Is it the power of capital? Is it the advantage of the model? Is it the power of the product? Is it the result of the shuffle? Is the strong getting stronger and the weak getting weaker? If you don't work hard, you can only be ruthlessly eliminated? All of the above. In a word, it is a comprehensive reflection of the core competitiveness of an enterprise. The formation of an enterprise's core competitiveness is by no means achieved overnight, nor can it fall from the sky. It is the intangible assets such as corporate philosophy, corporate management, and corporate culture that have been accumulated over many years. Even if you know how excellent companies build their core competitiveness, others cannot learn the core competitiveness. Therefore, there are many people in the ceramic industry who follow the trend, imitate, and copycat, but there are few lasting successes.

Lu

Don’t worry if the bottom price of the ceramic industry is exposed?

Recently, a man in the construction and ceramics industry broke a big story on his Douyin account - revealing the ex-factory prices of ceramic tiles across the country. Regarding this person and his affairs, there are a lot of discussions in the new WeChat group of industry insiders: Some people think that he is a clown who is just trying to please others; others think that he seriously lacks professional ethics, ignores the bottom line of the industry, and is a public enemy of the industry. It is said that people who hold the latter view have launched a human flesh search on the entire Internet for this guy.

A professional manager in the industry who hopes that Zhongtaojun will change his name to "Lu Renyi" said: "With the development of the Internet, any data may be exposed, but I don't think it will affect the development of the entire industry. This is just a matter of personal ethics."

Zeng Jiaqiang, Director of the Louvre Ceramics Marketing Department said, “I personally don’t care about the ex-factory price. For example, don’t consumers know if they eat Mapo Tofu? How many cents does a piece of tofu cost? In addition to the quality, brand and distribution fees of ceramic tiles, the service cost of the terminal is also part of the value. I also know that the cost of iPhone11 is not more than 3,000 yuan. The problem is this. I can't buy it at the price, and I can't buy it through consignment channels, so I get angry and want to surround Foxconn and steal it? Regarding this topic, I have to ask three questions: first, who is he? Second, what has he done? ? Third, why did he do this? After clarifying, ask two questions: First, as a peer and a bystander in the distribution channel, in what way did his actions affect you? Which aspects of your actions have been affected? This will basically clarify 70% of the facts.”

【Comments from Zhongtaojun】I heard this news from a friend. To be honest, Brother Chan thinks it is unnecessary for some people in the industry to conduct human flesh searches for this guy online. First, because the person and the incident were at best a matter of character, and he did not break the law, and there was no industry standard that could even punish him. If the bottom price is exposed, one will be punished. Should those vicious competitors who engage in price wars without a bottom line deserve to be punished even more? The second reason is that the impact of people and events on the ceramics industry is like a drop of ink poured into the sea. The result is the same, and it can hardly change anything. Consumers who have certain requirements and purchasing power will not buy low-price bricks that cut corners even if low-price brick operators shout for price cuts. Consumers who have the pursuit of low prices as their core need will naturally With the influence of low-priced bricks, and the influence of such a piece of information, it’s not a big deal. The ceramic industry has entered a stage of channel fission and consumption upgrading. Price is no longer the only factor that consumers pay attention to. Product functions, quality, brand value and pre-sales, during-sales and after-sales services that make them worry-free, comfortable and secure are their real concerns. Pursue. Products, brands and services are the core competitiveness of ceramic brands, but price is not. Is Apple worried about other mobile phone brands cutting prices? Aren’t Huawei’s high-end mobile phones getting more and more expensive? However, having said that, this person who exposed the lowest price of the industry is indeed a bad character and annoying, because he will more or less affect the business of those low-price brick operators.

Well, this issue of "Last Week's Highlights" ends here. If you have any ideas and suggestions, please leave a message, and you are also welcome to break the news!