Analysis: Concerns in the transformation of plumbing and bathroom industry in China

There are Foshan in Guangdong Province in the south, Hebei Tangshan in the north, and Henan Changge in the middle. "Changge Plumbing Sanitary Ware Industry Base," Changge, wants to be in the plumbing bathroom industry "three points of the world."

After more than 30 years of development, Changge Sanitary Ceramics has always been in the middle and low grades. The status of each company's "products that do not innovate, but are mutual imitations, and talents don't go through the training process but are mutually reinforcing each other's footsteps." If it does not change, its industrial upgrading will be a long process.

Best "annual production area"

From Zhengzhou, along the 107 National Road all the way south, in less than an hour's drive, there is a place called "China's central plumbing sanitary industry base". This is Changge City.

Changge, lack of resources on the ground and underground. However, Changge people are good at "throw out of nothing."

This former small agricultural county has today eight industrial systems, including diamond manufacturing and products, agricultural vehicles and machinery accessories, high-voltage electric porcelain appliances, building sanitary ceramics, textile processing, non-ferrous metal processing, agricultural and sideline product processing, and sheet metal processing. The eight major industrial systems, in addition to agricultural and sideline products processing, sheet metal processing, the local resources are still advantages, the other six major industrial systems is purely "out of nothing".

Analysis: China's plumbing and sanitary industry in the transformation of the hidden concerns to sanitary ceramics as an example: started in 1974, Changge plumbing bathroom, after more than 30 years of development, has become the largest sanitary ware production area in the Central Plains. In 2009, Changge City was awarded the title of "China's Central Plumbing Sanitary Ware Industry Base" by the China Building Sanitary Ceramics Association, which is based on the city's sanitary ceramics production accounting for 30% of the country's total production, accounting for 70% of the country's middle and low grade sanitary ceramics production, Henan 80% of the total amount of building sanitary ceramics has attracted the attention of the industry.

Whenever industry insiders mention Changge, there will be a feeling that this county-level city can develop into a “China Central Plumbing Sanitary Ware Industry Base” with such a scale. It really makes people praise it. Although Changge lacked local senior management and production talents, and the raw materials were from areas such as Pok Oi, Xiuwu, Dengfeng, and Bozhou; however, Changge people, who grew up out of nothingness, came out with a “ceramics” according to their own development model. road".

In the just-concluded seventh national ceramic industry newest rating list, Changge City emerged from the country's more than 30 counties and cities participating in the plumbing sanitary area, and won the "Best Annual Production Area" award in 2010.

The new list is known as the "Oscar" of the Chinese ceramics industry. The National Ceramic Industry Association sponsored the new national ceramics industry rankings selection, taking the growth and innovation of the major plumbing sanitary areas in China as the participating standards. It is a top platform for measuring the scale and product quality of the national ceramics industry.

According to Zhang Jianmin, deputy director of Changge Municipal Science and Technology Bureau, currently the city has 74 plumbing and sanitary ware production enterprises, 96 production lines, and 40,000 employed workers. The annual output of various types of sanitary ware is 45 million, accounting for about 30% of the national total. The products of 8 companies are exported to more than 10 countries and regions including South Korea, Russia, Egypt and the Middle East.

"Currently, sanitary ceramics in China are divided into three parts: Guangdong, Hebei, and Henan. Among them, Chaozhou, Guangdong is mainly a high-end product, Hebei Tangshan is mainly a high-end product, and Changge City is mainly a middle- and low-grade product. From the aspect of product quantity, it is long in 2010. Ge has surpassed Tangshan to become the second largest nation in the country, and will surpass Chaozhou in 2011 to become the nation's number one. Zhang Jianmin said.

The old "garbage porcelain"

However, in the past, Changge Ceramics was synonymous with "garbage porcelain."

What is "Junk Porcelain"? "It's a good point to say that engineering is using porcelain, and that the bad point is garbage porcelain," explains one business owner.

Changge Sanitary Ceramics Co., Ltd. began its development in the 1970s and its output has increased year by year. However, in the course of more than 30 years of development, the products have always been low-grade. The formation of product quality and quality in this period was mainly related to market demand. The special product category and name of “Engineering Porcelain” has almost become synonymous with Changge Ceramics.

The source of this title is Changge Ceramics as an accessory product for some housing. Due to the contract of the purchase contract, sanitary ware must be installed when the house is delivered. However, after these houses were handed over to the users, all the sanitary ware products installed were demolished and demolished, and households reinstalled sanitary ware. The smashed ware became "garbage," and the name "Engineering Porcelain" or "Garbage Porcelain" was derived from this.

“At that time there was a market demand and the amount was still large, so the quality of Changge Ceramics has not been able to come after so many years of development.” The company CEO recalled the grand occasion of Changge Ceramics, still excited, “there is a reasonable The market demand created the current status of Changge Ceramics."

Although people are surprised to see the development of Changge Sanitary Ceramics, they can't conceal their evaluation and positioning of “low price” and “bad quality”. For a long time, Changge Ceramics has always been equating with “depot goods”. In every city’s high-end home building materials city, it cannot find the shadow of Changge plumbing sanitary ware; at the annual National Ceramic Industry Conference, Changge The production areas are always listed on the “black list”, and it is difficult to gain a head and there is no status at all.

“Changge Sanitary Ceramics has developed for 30 years and accounts for 30% of the country's plumbing and sanitary ware production. However, the products have been hovering in the middle and low tiers. The output value and tax revenue are not comparable to other domestic production areas.” Changge Ceramics The staff of the Industry Promotion Office mentioned this sentence more than once. This is the pain that local governments and companies have been reluctant to touch but have to face.

In this regard, Ding Weidong, president of the National Building Sanitaryware Ceramics Association, gave an objective and comprehensive proposal that year: Changge Sanitary Ceramics Industry must develop in three areas: upgrading its price and quality; upgrading technological equipment and enterprise management. Level; enhance the professionalization level of the industry and follow the path of “professional division of labor”, prompting enterprises to break the “small and complete” situation under the role of the market system, form a collaborative and specialized division of labor, improve the product formation supply chain, and reduce Production costs, spread investment risks.

Behind the scenes is the government Changge City Government, from the development of the plumbing bathroom, tasted the sweetness, but also tasted the pain.

Before 2006, Changge sanitary ceramics industry did not receive the attention of the government because of its low taxation, extensive production, etc.; business owners think that Changge Sanitary Ceramics ranks first in the country and feels that it is the boss. No one wants to change the status quo.

After 2006, the local government realized that the plumbing sanitary ware industry had developed to a certain scale in the past 30 years, and also encountered serious problems of price wars, low product quality, and low added value. The solution to these problems can only be taken by the government.

At the end of 2006, Changge City established the Health Ceramics Promotion Office. In order to improve the scientific and technological content and brand awareness of sanitary ceramics, the municipal government specifically put this institution on the Municipal Science and Technology Bureau, and raised a special fund of 1 million yuan each year to upgrade the ceramic industry.

According to Zhang Yanjun, director of the Municipal Sanitary Ceramics Upgrading Office, the industrial upgrading work in Changge City started from the three aspects of integration promotion, quality improvement, and expansion of publicity. The government guides and supports enterprises to improve product quality, and organizes business owners to visit Foshan and Chaozhou in Guangdong; solves problems in the industry such as price melee and vicious competition; signs cooperation agreements with the National Ceramic Inspection and Testing Center, and invites experts from both inside and outside the province to visit regularly Corporate guidance; establish "Changge Ceramics Network" and strengthen contact and communication with industry media.

With four years of promotion, Changge Sanitary Ceramics has made great progress. Since the first promotion of the sanitary ceramics industry, 70% to 80% of sanitary ceramics products in Changge City are still mainly middle and low grades, but only one of the 11 companies in the national sanitary ceramics industry has been fully qualified since 2007. Of the 15 samples that were upgraded to that year, 11 were fully qualified.

In the case of significant improvement in the first time, Changge City actively sought the “secondary upgrade” of the plumbing and sanitary ware industry, that is, to carry out technological reform and brand cultivation.

"Why do you want to carry out the second promotion? At present, many companies in Changge are still playing Foshan brand. The quality of products has gone up, but the price has not gone up. Even in the national market, there are even phenomena of inversion of quality and price. The reason is still to produce. The popularity of the district is not high and its influence is not significant, said Li Zhijun, deputy mayor of Changge City, who is responsible for the ceramic industry.

With regard to the "secondary advancement" of Changge plumbing sanitary ware, according to Zhang Yanjun, the Municipal Science and Technology Bureau has formulated a clear work plan and plans to build a 2000-mu ceramics industrial park. A 390-acre phase I will be started in May this year. In addition, the municipal government will also hold a summit on the development of plumbing and sanitary ware industry in the month and the ten brands of sanitary ceramics in the month of August. In October, the Sanitary Ceramics Exhibition will be launched.

Hidden worries in the transformation Changge is located in the hinterland of the Central Plains, with a favorable geographical location and convenient logistics. The cost of products shipped to all parts of the country is not high, which is the advantage that other domestic plumbing sanitary production areas do not have.

It is such an advantage that makes the Changge plumbing sanitary brand's dominant position in the low-priced plumbing and sanitary ware market become more obvious. Previously, Tangshan production area with the same positioning as Changge plumbing sanitary products has now given way to Changge in the market of low-priced plumbing sanitary ware products. Today, Changge has surpassed Tangshan to become the second child of domestic sanitary ceramics, and is expected to surpass Chaozhou in 2011, becoming the industry leader in product quantity.

“At present, there is a trend of 'Southern Porcelain's moving northwards' across the country’s ceramic producing areas. Under the situation where the building sanitary ceramics industry has been reshuffled, regions like Changge have seized a rare historical opportunity and can fully build a national architectural hygiene. An important base for ceramics."