A few days ago, the Ministry of Housing and Urban-Rural Development and the Ministry of Finance and other six ministries jointly issued a document. The first batch of Shandong and Ningxia provinces and regions selected to promote the pilot project of building materials to the countryside to explore the operation methods and models of various building materials to the countryside.
At present, there are more than 1.3 billion people in China, including more than 200 million families in rural areas. If the penetration rate of any commodity increases by 1%, it will increase the demand by 2 million pieces. Moreover, 40% of rural residents' living expenses are spent on building materials. After most rural residents have a certain cash income, the first thing they want to do is to build a house. It is reported that the annual area of ​​new rural houses in China is about 800 million to 900 million square meters. If the policy of going to the countryside for related building materials can be fully implemented, there will be at least 8% improvement in building materials sales.
However, the categories listed in the first batch of trials only belonged to the category of cement in the construction materials category, while the home furnishing companies such as flooring, wooden doors, paints, ceramics, sanitary wares, etc. related to home decoration did not catch the first bus of “building materials to the countrysideâ€.
This result is not unexpected, because at present, China's rural areas are still dominated by brick-concrete houses and adobe houses, and the demand for cement is inevitable. The consumption of ceramic tiles is basically dominated by wall tiles, and the popularity of glass tiles and glazed tiles is higher in rural areas. For the interior decoration of the house, there are only a few wall coverings. Only a few families will lay the floor tiles. Most of the households use the cement to handle the internal space, which is related to rural living habits.
The unselected ceramic products are also related to the characteristics of this industry. Ceramic products differ from cement and other industries in that there are many varieties, colors, and materials, and the categories are rich. Unlike cement, it only needs to be distinguished by labels. In addition, the ceramic industry has not completed the active industry centralized adjustment, the industrial structure is more dispersed, and the network layout is not perfect, especially in some remote suburbs, it is difficult to unify procurement and unified distribution. In addition, the catalogue of subsidized products is difficult to determine. There are more than 25,000 ceramic brands in the country, and which varieties can enjoy subsidies. The government and enterprises are still considering.
Due to the generally low level of rural consumption, compared with the positioning of the higher-ranking first- and second-line brands in the county-level market, the rural building materials market is generally occupied by third-line brands or miscellaneous brands, coupled with farmers’ lack of understanding of building materials and building materials. Product purchases are still stuck in the price-driven factor, so in terms of actual consumption power, many high-end ceramic brands will face a situation of nowhere to go.
Will the high-end product positioning cause the ceramic enterprises to miss the opportunity of “building materials to the countryside� Lan Weibing, director of Foshan Office of China Ceramic Industry Association, believes that the potential of the rural market is huge. Foshan ceramic enterprises are fully capable of adjusting the product line. According to the progress of policy implementation, products suitable for rural sales should be developed as soon as possible. Vitinated bricks, glazed tiles and other products with high penetration rate in rural areas, and strengthen the channel sinking to seize the opportunity to share the building materials to the countryside.
It can be said that the building materials to the countryside is a rare opportunity for many building materials brands, but also a cultivation and challenge to themselves. Many ceramic enterprises have sharpened their knives and quickly organized research and research to open up the rural market. New Zhongyuan Ceramics gradually penetrated the county and city-level markets through group purchase, and strengthened its support and control over the prefecture-level market. As early as October 2008, the New Pearl Group has started to specifically launch plans for entering the rural town market. Dongpeng has built production bases in various places, and has laid out county-level outlets with brand, price and freight advantages to sell products to the rural market. Mona Lisa and Jin Yitao also indicated that with the development of the rural market, low-priced products will be developed according to the consumption tolerance of the rural market. Jin Yitao's new product launched in April this year is specifically developed for third- and fourth-tier cities.
“The consumption potential of the rural market is huge.†There is a consensus in the industry that once the house is built up, the building materials products will be useful. With the development of the economy and the improvement of the living standards of rural residents, the living habits and living environment will naturally improve, so that they can live comfortably, and it is an inevitable trend to make the home beautiful.
At present, there are more than 1.3 billion people in China, including more than 200 million families in rural areas. If the penetration rate of any commodity increases by 1%, it will increase the demand by 2 million pieces. Moreover, 40% of rural residents' living expenses are spent on building materials. After most rural residents have a certain cash income, the first thing they want to do is to build a house. It is reported that the annual area of ​​new rural houses in China is about 800 million to 900 million square meters. If the policy of going to the countryside for related building materials can be fully implemented, there will be at least 8% improvement in building materials sales.
However, the categories listed in the first batch of trials only belonged to the category of cement in the construction materials category, while the home furnishing companies such as flooring, wooden doors, paints, ceramics, sanitary wares, etc. related to home decoration did not catch the first bus of “building materials to the countrysideâ€.
This result is not unexpected, because at present, China's rural areas are still dominated by brick-concrete houses and adobe houses, and the demand for cement is inevitable. The consumption of ceramic tiles is basically dominated by wall tiles, and the popularity of glass tiles and glazed tiles is higher in rural areas. For the interior decoration of the house, there are only a few wall coverings. Only a few families will lay the floor tiles. Most of the households use the cement to handle the internal space, which is related to rural living habits.
The unselected ceramic products are also related to the characteristics of this industry. Ceramic products differ from cement and other industries in that there are many varieties, colors, and materials, and the categories are rich. Unlike cement, it only needs to be distinguished by labels. In addition, the ceramic industry has not completed the active industry centralized adjustment, the industrial structure is more dispersed, and the network layout is not perfect, especially in some remote suburbs, it is difficult to unify procurement and unified distribution. In addition, the catalogue of subsidized products is difficult to determine. There are more than 25,000 ceramic brands in the country, and which varieties can enjoy subsidies. The government and enterprises are still considering.
Due to the generally low level of rural consumption, compared with the positioning of the higher-ranking first- and second-line brands in the county-level market, the rural building materials market is generally occupied by third-line brands or miscellaneous brands, coupled with farmers’ lack of understanding of building materials and building materials. Product purchases are still stuck in the price-driven factor, so in terms of actual consumption power, many high-end ceramic brands will face a situation of nowhere to go.
Will the high-end product positioning cause the ceramic enterprises to miss the opportunity of “building materials to the countryside� Lan Weibing, director of Foshan Office of China Ceramic Industry Association, believes that the potential of the rural market is huge. Foshan ceramic enterprises are fully capable of adjusting the product line. According to the progress of policy implementation, products suitable for rural sales should be developed as soon as possible. Vitinated bricks, glazed tiles and other products with high penetration rate in rural areas, and strengthen the channel sinking to seize the opportunity to share the building materials to the countryside.
It can be said that the building materials to the countryside is a rare opportunity for many building materials brands, but also a cultivation and challenge to themselves. Many ceramic enterprises have sharpened their knives and quickly organized research and research to open up the rural market. New Zhongyuan Ceramics gradually penetrated the county and city-level markets through group purchase, and strengthened its support and control over the prefecture-level market. As early as October 2008, the New Pearl Group has started to specifically launch plans for entering the rural town market. Dongpeng has built production bases in various places, and has laid out county-level outlets with brand, price and freight advantages to sell products to the rural market. Mona Lisa and Jin Yitao also indicated that with the development of the rural market, low-priced products will be developed according to the consumption tolerance of the rural market. Jin Yitao's new product launched in April this year is specifically developed for third- and fourth-tier cities.
“The consumption potential of the rural market is huge.†There is a consensus in the industry that once the house is built up, the building materials products will be useful. With the development of the economy and the improvement of the living standards of rural residents, the living habits and living environment will naturally improve, so that they can live comfortably, and it is an inevitable trend to make the home beautiful.
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