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How Chinese Ceramics Win the ASEAN Market

How Chinese Ceramics Win the ASEAN Market

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[Abstract]:
As the largest and highest-grade building materials exhibition in Thailand and the ASEAN region, this exhibition undoubtedly provides an ideal display platform for building materials companies from the Asia-Pacific region to explore the ASEAN market. Therefore, many exhibitors are actively preparing for the battle and putting great effort into the booth design, which seems to be "high-end and high-end."

However, compared with the crowded and lively scenes of other booths, the standard booths of the Chinese participating delegations can be described as deserted. Except for a few buyers who temporarily stopped to ask for product information and inquire about prices, it was difficult to attract the attention of other visitors. "These stall-style booths are considered to be companies with little strength at a glance, and big customers will never come to them automatically!" said Wu Jianfa, chairman of Eastman Building Materials Group, who has more than ten years of experience in the international market. However, it is worth pointing out that Thailand and the entire ASEAN have a large market share of ceramic tile consumption, and Chinese ceramic tiles are not unpopular. How should my country's ceramic exports break the dilemma of "anti-dumping" and "unselling prices"?

How to win the market of Chinese ceramics in the ASEAN market

Low-end products are anti-dumping, high-end products cannot be sold

According to data released by the National Bureau of Statistics and Customs, the cumulative export value of China's ceramic tiles in 2013 increased by 24.28% year-on-year. In terms of the distribution of export trading countries, the top five in order are Malaysia, Saudi Arabia, the United States, Singapore, and Thailand. Compared with 2012, the export value of Malaysia, Singapore, and Thailand has increased rapidly, and the cumulative year-on-year growth rate is respectively 121.06%, 46.93%, 46.12%, the proportion of exports has increased from the 5th, 7th, and 8th places in the previous year to the 1, 4th, and 5th places respectively.

Although China's ceramic tile exports have been increasing unabated over the years, export conditions have continued to deteriorate. Many ceramic companies export mainly to digest inventory and relieve inventory pressure. Therefore, they did not formulate their own brand strategy at the beginning, and most of them dumped overseas with high-quality and low-cost products.

The "flooding" of Chinese products ultimately hurt the market and made local customers widely formed the prejudice that "Chinese products are low-priced goods". Today, even in ASEAN countries where ceramic tile production technology is relatively backward, Chinese ceramic tiles are still regarded as synonymous with "low-end". Since 2011, Thailand has imposed anti-dumping on Chinese ceramic tiles. In 2014, Thailand implemented the Thai Ceramic Tile Industry Standard (TIS2508-2555) for Chinese ceramic tiles. Chinese ceramic tile companies that have not obtained the TISI certificate cannot export their products to Thailand. This shows that the international market prejudice that "Chinese ceramic tiles equal low-end products" has further deepened.

Although some brand companies have begun to reflect on the mode of dominating trade with price products, they still cannot reverse the international consumer market's perception of cheap, low-grade, and inferior Chinese products. In 2013, China's ceramic output reached 9.69 billion square meters, but Chinese ceramic tiles did not form a well-known brand in the international market.

When I visited Boonthavorn, the largest building materials supermarket in Thailand, I found that the average selling price of Italian and Spanish ceramic tile products was about RMB 800 per square meter, while the highest price of Chinese first-line high-end brand products was only around RMB 350 per square meter. The local brand COTTO sells for approximately RMB 200 per square meter. It is understood that many of COTTO's products are OEM produced by Chinese manufacturers.

"The quality of some Chinese products is better than those produced in Europe." The relevant person in charge of Boonthavorn said that Chinese ceramic brands have a good product foundation for entering the Thai market, but the high-end brands recognized by Thai consumers, in addition to the local brand COTTO, It is the products of Italy and Spain. For Chinese products to be recognized by the high-end market, a certain amount of effort is needed.

As the largest and highest-grade building materials exhibition in Thailand and the ASEAN region, this exhibition undoubtedly provides an ideal display platform for building materials companies from the Asia-Pacific region to explore the ASEAN market. Therefore, many exhibitors are actively preparing for the battle and putting great effort into the booth design, which seems to be "high-end and high-end."

However, compared with the crowded and lively scenes of other booths, the standard booths of the Chinese participating delegations can be described as deserted. Except for a few buyers who temporarily stopped to ask for product information and inquire about prices, it was difficult to attract the attention of other visitors. "These stall-style booths are considered to be companies with little strength at a glance, and big customers will never come to them automatically!" said Wu Jianfa, chairman of Eastman Building Materials Group, who has more than ten years of experience in the international market. However, it is worth pointing out that Thailand and the entire ASEAN have a large market share of ceramic tile consumption, and Chinese ceramic tiles are not unpopular. How should my country's ceramic exports break the dilemma of "anti-dumping" and "unselling prices"?

How to win the market of Chinese ceramics in the ASEAN market

Low-end products are anti-dumping, high-end products cannot be sold

According to data released by the National Bureau of Statistics and Customs, the cumulative export value of China's ceramic tiles in 2013 increased by 24.28% year-on-year. In terms of the distribution of export trading countries, the top five in order are Malaysia, Saudi Arabia, the United States, Singapore, and Thailand. Compared with 2012, the export value of Malaysia, Singapore, and Thailand has increased rapidly, and the cumulative year-on-year growth rate is respectively 121.06%, 46.93%, 46.12%, the proportion of exports has increased from the 5th, 7th, and 8th places in the previous year to the 1, 4th, and 5th places respectively.

Although China's ceramic tile exports have been increasing unabated over the years, export conditions have continued to deteriorate. Many ceramic companies export mainly to digest inventory and relieve inventory pressure. Therefore, they did not formulate their own brand strategy at the beginning, and most of them dumped overseas with high-quality and low-cost products.

The "flooding" of Chinese products ultimately hurt the market and made local customers widely formed the prejudice that "Chinese products are low-priced goods". Today, even in ASEAN countries where ceramic tile production technology is relatively backward, Chinese ceramic tiles are still regarded as synonymous with "low-end". Since 2011, Thailand has imposed anti-dumping on Chinese ceramic tiles. In 2014, Thailand implemented the Thai Ceramic Tile Industry Standard (TIS2508-2555) for Chinese ceramic tiles. Chinese ceramic tile companies that have not obtained the TISI certificate cannot export their products to Thailand. This shows that the international market prejudice that "Chinese ceramic tiles equal low-end products" has further deepened.

Although some brand companies have begun to reflect on the mode of dominating trade with price products, they still cannot reverse the international consumer market's perception of cheap, low-grade, and inferior Chinese products. In 2013, China's ceramic output reached 9.69 billion square meters, but Chinese ceramic tiles did not form a well-known brand in the international market.

When I visited Boonthavorn, the largest building materials supermarket in Thailand, I found that the average selling price of Italian and Spanish ceramic tile products was about RMB 800 per square meter, while the highest price of Chinese first-line high-end brand products was only around RMB 350 per square meter. The local brand COTTO sells for approximately RMB 200 per square meter. It is understood that many of COTTO's products are OEM produced by Chinese manufacturers.

"The quality of some Chinese products is better than those produced in Europe." The relevant person in charge of Boonthavorn said that Chinese ceramic brands have a good product foundation for entering the Thai market, but the high-end brands recognized by Thai consumers, in addition to the local brand COTTO, It is the products of Italy and Spain. For Chinese products to be recognized by the high-end market, a certain amount of effort is needed.

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