Review on 2009's Ceramic Industry
This is the translation of The Column of Ms. Yinhong, the Secretary of Foshan Ceramic Industry Association and the Vice-Chairman of the National Standard Committee of Building, Sanitary and Ceramics.
For China' economic development, 2009 is an unusually year as well as for the ceramic industry. Although the situation of the world is depressed, the production and sale of China's ceramic industy is prosperous. Carrying forward our cause into the future and reviewing the passed year, there are some points to be concerned:
1. The production ability of our national ceramic tile was enlarged and its output had promoted. The output of ceramic tile for the first three quarters up 19.75%, among which, there are 17 province's with a double figures increase. And for Hunan and Nei Monggol, the number came to three figures while for Guangdong is almost the same as the former year. Estimating accoding to these number, the national output of 2009's ceramic tile would be 6.6 billion square meters in the growth rate of 15%(compared to the 5.755 billion square meters of 2008). And our national per capita would be 4.48 square meter to be the first in the world for the first time. For the reasons of the government's RMB 0.4 billion investment on infrastructure projects, the prosperous of the real estate and the acceleration of the rural urbanization, the consumption and marketing of 2009's ceramic tile was booming.
2. The ceramic's export is on the same level of 2008. Showed by the data of the first three quarters of 2009, the export value of ceramic tile increased by minus 0.03% and the export volumn's is minus 3.44%. This is the first time that the increase is not obvious in nearly 10 years. But compared with the sanitary ware and domestic ceramics' decline with double figures, the export of ceramic tile is still the most competitive with a raising average price. According to the statistic data announced at the last December by Guangzhou Custom, from January to October of 2009, the total value of ceramic export was 3.23 billion dollars, increasing 4.6% compared to 2008 for a monthly rising again. Obviously, the exporter of Guangdong's ceramic is still higher than the national average level.
3. The national test result promoted the ceramic's quality to be heavily concerned. Last October, the Ceramic Quality's Test Result was issued by AQSIQ. According to the results of this report, there are 97 kinds of unqualified ceramic products among the 364 samples provided by 272 enterprises from Hebei, Shanxi, Liaoning, Fujian, Shandong, Guangdong, Sichuang and Shanxi provinces. The reject ratio came to 26.65%. This resulte can be involved with the new CCGF310—2008 criterion which issued at Oct. 2008. The last years' national spot test was more strict and more wider than the former years. Last December, Fuzhou Municipal AUQA announced that there were 8 lots rejected ceramic in 20 lots during the province quality test. And at the third quarter of 2009, Shanghai, Shichuan, Shanxi also done their quality test for ceramic tile with the result of 3 lots rejected in 38 lots in Shanghai, 7 lots rejected in 40 lots from 25 enterprises in Shichuan and 3 lots rejected in 30 lots from 29 enterprises in Shanxi.
4. The strength of the industy regulation was still improved; the spread of the industy was still enlarged; the industy transfer was implied very well and the basic industy distribution had formed. It was reported that in Chancheng District, Foshan City, there were 87 enterprises that had finished its move cutting off the last November. 269 production kilns were pulled down and 155 spray drying tower were destroyed, which held 66.4% and 62.5% percentage of the total sum respectively. Zibo Municipal Government issued "The Guidance on the Adjustment of Zibo's Building Ceramic Industy(2009-2011)" with the hope of controlling the production ability within 0.7 billion square meters after three years and cleaning 200 backward production line out with a production ability of 0.5 billion square meters. The emerging building ceramic basic are more and more. There are more than 30 products bases with large scale and more than 200 production lines of ceramic floor and wall tiles. The regionalization of production and marketing is more and more distinct to put heavy press on the old ceramic bases, such as Zibo, Minqing, Jinjiang, Foshan and so on.
5. The comprehensive marketing mode of regional agent system are still keeping on. Many promotions appeared one after another, such as group purchase, ending and lottery. It seemed that where there wasn't promotions, there wasn't marketing. Star spokesmen and CCTV advertisements were enlarged along with more and more luxurious stores and marketing cost. At the same time, the market share of the tertiary and quaternary markets(including countrysides) are expanding. The market orientation for different brands came to be specific. On the one hand, many low-end products were sold to countrysides. On the other hand, the first and the secondary markets are spatialized. A new multipolar marketing mode came with the old modes of regional agents, branch system, bulding material supermarkets and direct marketing. The home alliance are expanding, too. While the development of the marketing of ceramic tile in building material supermarket is slow.
6. Technical innovation promoted continously the advancement of ceramic tiles' production technology and the marketing of its terminal products in 2009. New products emerged one after another and polished products uped to a new stage. Various rustic ceramic tile, such as stone grain, linen grain, leather grain, veineer and metal, are so skillfully imitated as to be indistinguishable from the original. Various new semi-polished products and glazed tiles came into the stage. The implement of the national standard "GB/T23266—2009" at Dec. 5, and the industry standard "JGJ/T172—2009" at July, 5. were the begining of the thin package of ceramic tiles in 2009.
7. The first China(Foshan)Cermaic Festival was held with the theme of " Art and Life" in Chancheng district, Foshan during Oct. 18-21. At the same time, many other activities, such as "the fourteenth Foshan International Cermaic Expo", "2009 World Ceramic Summit", "American Purchase Festival" and so on, promoted the competition between Foshan and Shanghai. The first "Chinese Building, Sanitaryware, Ceramic Almanac" issued which means the end of an industry history without development almanac.
8. The litigations on trade protection and anti-dumping are more and more intense. At October, The Ministry of Commerce and Industry made a ruling of anti-dumping of China's ceramic tiles. And at December, Thailand officially registered on anti-dumping of China's ceramic tiles to investigate all the glazed tiles and unglazed tiles that imported from China.
2009 is an unusual year for Chinese ceramic tile development. It is the year for renovation of ceramic industry; it is the year for rapid development, which will cause heavy effects on the future's development of ceramic.