According to the data released by the China Building Sanitary Ceramics Association, in the comparison of income and profits of building ceramics enterprises in 2012, sales of building ceramics enterprises increased by 2.93%, sanitary ceramics companies decreased by 3.08%, and hardware and sanitary ware companies increased by 0.27%. In the growth rate of profit for the whole industry, building ceramics enterprises increased by 8.31%, sanitary ceramics companies decreased by 5.55%, and hardware and sanitary ware companies decreased by 25.43%. The percentage drop in hardware and bathroom is basically the sum of the decline in the company's products, which is basically an “abnormal†performance.
It is not difficult to see from the data that when the entire sanitary ware industry is declining, the down trend of hardware and sanitary ware is particularly evident. When the reporter visited some hardware companies, the relevant person in charge of the company also stated: “Last year, hardware was very difficult to do. This year’s The situation may be even worse.†While the sales of bathroom products have declined, the profits of hardware and sanitary products have been reduced much more than other sanitary products. Some industry experts have also predicted that the performance of hardware and bathroom will indicate that the hardware and bathroom are currently The market is becoming saturated.
Exports were blocked, domestic consumption was limited With the rapid decline of China’s foreign hardware export market in 2011, especially the North American market and the Japanese market, according to 2012 statistics, the United States accounted for 19.92 of the countries exporting hardware and sanitary wares in China. %, while the Japanese market has fallen out of the top ten. With the decline in the export of hardware and sanitary wares, some of the original export companies began to fought in the domestic market, which made the competition in the domestic market, which was originally tense, even more fierce, and the hardware and bathroom market began to play a fierce price war.
When the reporter interviewed the brilliant plumbing, the person in charge of the company told reporters: “The development of hardware and sanitary hardware in recent years is not optimistic. In particular, foreign exports have seen a sharp decline in one year, leaving many companies unprepared, some companies In pursuit of profits, we started endless price reduction promotions. We use low prices to obtain returns. One company cuts prices, the other lowers prices, and the next one goes down again. In this way, the benign competition in the industry is undermined. Everyone is only on price. Make a fuss."
The recent occurrence of taps (faucet decoration renderings), "leaded doors" incident through media hype has attracted the attention of some foreign markets, began to affect the domestic hardware plumbing exports. When reporters surveyed the market in Nan'an and Zhejiang, some companies reported that some countries have strengthened the inspection of heavy metal content in hardware and plumbing, and this has a great impact on current export-oriented enterprises.
In China, the ubiquitous sales price cuts become a common feature of hardware sanitary sales. According to a market sales staff, with the significant price cuts and promotions of hardware and bathroom, leading small workshop companies began to take advantage of this time. "The original sales of Huaxia Ceramics were republished at the price of the first consideration, and only then will the quality and functionality of this product be considered. Some small workshops saw the business opportunities there, and they started to drive down the prices and cut down on the quality of the products. Put into the market, so that an angle valve as long as one dollar or even seventy-eight horns, and brand-name companies instead have no position in the market, the phenomenon of seizing the source of tourists is very serious, the vicious cycle of prices is even more amazing."
From the first half of this year, hardware and sanitary products still have too few outlets in the cruel market, and the profits of hardware companies are less than 5%. This is why industry experts predict that hardware and sanitary ware have become saturated in the domestic market.
Rising raw material prices, shrinking corporate profit margins For companies, an important aspect of increasing profit growth is controlling raw material costs for production. With the increasing difficulty of market sales, the rents for raw materials and corporate dealers' stores are getting more and more expensive, which makes the hardware bathroom, which was already at the forefront of the storm, fall into a more embarrassing situation. With the increasingly fierce market competition in the hardware and bathroom industry, the days for dealers are even worse. “We can’t sell a few products a day, and sometimes we don’t even open a business for a few days. However, the rent for stores is higher year-on-year. After one month, don’t say that it is profitable to make profits. It is good to lose money.†A dealer surnamed Wang told reporters.
According to statistics, raw material prices have become a hot topic in the hardware and sanitary industry since 2010. By 2012, some of the main raw materials for hardware and sanitary products, such as copper, rose by 32% year-over-year within half a year, and have historically been high since the breakthrough of 9,000 US dollars/ton. The price of steel materials has risen sharply since October 2012, and has remained high until the middle of this year. This makes it difficult for hardware and sanitary companies that originally purchased raw materials for deep processing to sell through low prices.
The rise in raw materials has increased the cost of producing hardware and sanitary products. The original ex-factory price of a product was around 150 yuan, and with the rise in raw materials, the ex-factory price of the product was already higher than 200 yuan, which did not include processing costs. In this case, the market price fell. The fall, coupled with the increase in employees’ wages, the logistics costs of the company’s external transportation and the local storefront costs of the dealers, the final profit of a product is almost single-digit. A dealer smiled and said: "We are doing the porters for the market consumers."
The reporter learned that, as the market has not clearly shown signs of recovery, near the end of the time, in some large building materials stores, in addition to a small part of the hardware and bathroom distribution stores in the renovation, most of the stores are maintained as they are, and some hardware and bathroom stores have even withdrawn Large store.