China's bathroom is spreading or mudslide

With the development of China's ceramic sanitary ware industry, whether it is the blooming of its own brand or the large-scale entry of foreign companies, it has intensified the competition in the ceramic sanitary ware industry, and it also makes the sanitary ware market continue to saturate and expand. Even industry insiders predict that the ceramic sanitary ware industry in China The "debris flow" era is bound to come. The ever-expanding bathroom industry market is like a balloon approaching the breaking point, and it is already on the verge of an explosion. This unbridled expansion trend is bound to also bring great harm to the development of sanitary companies.

One of the key words for advocating "balloon": "internal and external problems"

After nearly 20 years of development, China's sanitary ware industry has been showing a trend of continuous explosive growth. Due to relatively low barriers to entry, sanitary ware companies of varying sizes have been established, and there are a large number of sanitary ware brands. However, most of these brands are only workshop-style family production, or the production of large-scale brand names for small-scale production. Only Wenzhou has produced hundreds of manufacturers of bathroom hardware accessories. These small and medium-sized enterprises are small in scale, with backward equipment and difficult to innovate in technology. Naturally, the quality of bathroom products for export is difficult to guarantee. In the industry, phenomena such as “excessive lead” and “excessive zirconium silicate” have been frequently exposed, causing consumers to “talk about the change of lead”, and the credibility of the entire industry has been seriously affected.

However, under the "domesticated worries" facing the development of domestic companies in the sanitary ware market, they have to face the "external" interference caused by the strong expansion of foreign companies. Although China is an ancient ceramic country with a long history, ceramic sanitary ware products are imported products. The manufacturing technology of modern sanitary ceramics is introduced into China from Europe. “Foreign brands” have advantages that cannot be ignored in terms of craftsmanship, styling, or environmental protection. As early as 2000 to 2005, foreign brands began to approach China's vast first- and second-tier markets in China. Today, almost 80% of the mid- to high-end market share is monopolized by these "foreign brands." In addition, some county-level markets can almost see the billboards of Kohler and American Standards, and the development speed of the sanitary ware industry is accelerating. The competition between the “foreign brands” and the local brands’ market interests is gradually intensifying.

However, the sanitary ware market is far more than just a game ground for these two forces. There are more and more forces that want to join in this game that divides the domestic market.

The second keyword of the "balloon" is advocated: "export back to the nest"

Although China's sanitary ware industry developed late, it quickly grew to become the world’s largest producer and distributor of sanitary ware products, with sanitary ware accounting for 30% of the world’s total and sanitary ware fittings accounting for 35% of the world’s total, exported to Europe and the United States. Products in Japan, South Korea, the Middle East, and other regions all have an annual growth rate of 50%. However, with the foreign countries building foreign trade barriers in recent years, the foreign trade of export-oriented companies has become increasingly difficult. Enterprises face the high anti-dumping tariff rate charged by foreign countries, and the dual pressure of the increasingly unobvious advantages of low-cost labor force in the country. As production costs continue to increase, the profits earned by enterprises themselves are minimal, and even losses have already occurred.

Exports have become a tasteless, unpalatable, abandoned pity. Under this situation, more and more export-oriented enterprises have come back to their nests and started to take the path of export to domestic sales. In the eyes of such enterprises, on the one hand, the deteriorating export situation has forced them to withdraw from foreign markets. On the other hand, due to a series of developments in the domestic housing market, such as the warming of the real estate market and the construction of urbanization, it seems that they have seen the spring of the domestic sanitary ware market coming. They are eager to visit this spring. However, leaving aside the fierce competition in the domestic market, we do not say that urbanization is also facing a potential crisis, and the market for sinking channels has not seen much optimism. It is still difficult for these companies to get together and return to their nests, but it is hard to say whether they will be able to bathe in the spring breeze, but it will make the domestic sanitary ware market more and more inflated. The “big balloon” has become more and more established facts.