Sichuan: Over 100 Ink Jet Printers in 2013

07 Aug 2015/CTW

The whole Sichuan production unit, swept by the ink jet frenzy stirred up by ceramics industry has had more than 90 online ink jet printers and there are still companies in Jiajiang and Danling undergoing negotiations with suppliers on purchasing. One officer from a Jiajiang ink jet printer office revealed that it was quite possible that the total number of ink jet printer in the whole Sichuan production unit would exceed 100 in 2013.

  

In fact, the wide application of ink jet printers is one of signs representing the equipment and technology upgrading of ceramics enterprises in Sichuan production unit while the addition of new production line and the renovation of the old lines are another measure to improve hardware facilities. For example, Guangle Ceramics has set up the production line for exterior wall tile; Jianhui Ceramics has turned the production line of polished tiles into that of micro tiles; New Peak Ceramics has set up lines of rustic tiles, polished glazed tiles and Hongfa Ceramics polished tiles. The list can be on and on.

  

However, the accelerating upgrading of hardware cannot fundamentally narrow the gap between Sichuan and Foshan, or Shandong and Jiangxi. The rising of New Peak and Jianxiang is not enough to enhance the whole production unit.

  

“Despite of the stable sales during the past a couple of years, companies haven’t realized modernization in branding building and internal management. While the family-run mode, popular in Sichuan ceramics companies, still exists, it is difficult for talents from outside to integrate into the system or gave the say. The so-called upgrading mostly remains at the basic level of equipment and technology,” admitted by a sales person of one large ceramics company in Sichuan. 

  

“Multiple operations” undermines competitiveness

  

 As the brand recognition of the leading companies of a unit is undoubtedly the important base for the image and influence of this unit, the status and attraction to end users of ceramic brands in Guangdong and East China is no doubt inseparable from the success of famous brands like Marcopolo, Eagle Ceramics, Dongpeng Ceramics, Nabel and Champion-tile. That’s why the shortage of leading brands in Jiajiang as well as Sichuan at large results in the infinite delay of building regional brand by the local government.

  

Jiajiang production unit stood out from the Sichuan unit around 2008 when a wave of image building tide was started by local companies such as Xinwanxing, Jianhui, Milano and Venice’s Merchant, whose outlets could be seen everywhere in municipal cities and counties in Sichuan and Chongqing at that time.

  

After the devastating 2008 Wenchuan earthquake, some companies in Jiajiang used lines for the mid and low end ceramic products in need in quake areas, relaxing the building of end image. As a result, with the end of rebuilding work in hit areas, many products faced a hard time to sell without the market support.

  

Confronted with overcapacity, little sales and shrinking profit, ceramics companies, including several large local ones in Jiajiang sped up operating through multiple ways. For example, Milano marched in housing market; Xinwanxing entered in housing market as well as carbon fiber industry and Venice’s Merchant and Meihui made to star hotels.

   

According to the owner of one multiply-run ceramics company, owners in Jiajiang were willing to make brands, but the high cost and risk, especially under the gloomy market climate, made the ceramic production way less profitable than real estate sector. However, these multiply-run companies would not abandon their main business, which is the important basis for them jumping into other sectors.

  

When the company puts more into unrelated sectors, the effort or capital for ceramics would be bound to decrease. 

  

During a staff meeting, the boss of one ceramic company required to maintain the current situation, not hoping for further development. So it is impossible to hope the alternative sectors to drive up ceramics industry in turn. 

   

Advantages of new lines not given the full play

  

The entire sales of tiles in Jiajiang began to recess since late June this year and it has seen no recovery till now. The usual rush month of September and October embraced no difference. The large-scale production of new lines brought companies advantages over price and quality, as well as huge pressure on inventory.

  

Zhong Weiren, the sales director of New Peak said that the output advantage of the company was based on the balance between output and sales. The rapid development of New Peak over the past two or three years attributes to the newly established production line, which had lower cost than previous one and on the other hand, the importance attached to the development and maintenance of selling channels at the very beginning.

  

Zhong revealed that New Peak has doubled its work on the plan of setting up outlets to promote the end image. It is the outlet system that helped the rising Jintao Ceramics keep a stable growth in spite of the unsatisfactory backdrop.

  

Currently, some ceramics companies still emphasize more on hardware upgrading during transformation, rather on soft power such as marketing, internal management, talents training and introduction and corporation culture. It is why Sichuan unit, Jiajiang in particular lags far more behind Foshan, Shandong and Jiangxi units.

  

According to Huang Yu, the general manager of Fangzheng Tiles, the development of Sichuan ceramics companies cannot be relied on cost reduction since transit fee of exterior wall tiles from Jiangxi province is even less than the original price of local tiles. Most ceramic products have no advantage of production cost compared with those of Foshan, Gaoao and Zibo unit.


Reporter : Pu Wandong

This is the 2nd issue.

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