In 2009, the spurt-type sales market was in the forefront, and no one would have thought that the Gaoan ceramic industry in 2010 ushered in the worst year in the history of development. After entering April, the products of many ceramic enterprises began to appear in large-scale inventory. After more than three months of suffering, in July, a large-scale price war and the “sadness†of production stoppage and production restriction began to appear. The common language: "Seven deaths, eight lives and nine turns over", this is a true portrayal of the ceramic industry's sales season in previous years, but in September 2010, there was no sign of "turning over". Some companies' production lines, especially the tile production lines, are many. Quietly "lying" in the production workshop, not far from the product is full of warehouses, and even filled with blank aisles in the company's factory. Gao An, a business owner who has been engaged in ceramics business for 20 years, has no choice but to say that this is the toughest year for Gaoan ceramics industry!
The annual sales target failed the inventory crisis
What is the reason that led to such a rare scene in Gao'an ceramics enterprises?
Ceramic manufacturers' over-optimism about the trend of China's ceramics market in 2010 is the "culprit." I remember that in May of this year, when the author interviewed Hu Yiheng, the chairman of Jiangxi Sun Ceramics Co., Ltd., he pointed out some irrational follow-up phenomena and investment motives in the ceramic industry. He said that the current stage (capacity growth) of the ceramic industry, investment (especially It is a small-scale homogenization product investment.) You can't hold the mentality of making quick money. You must have the preparation for doing business and long-term development, otherwise the risk is great. Sure enough, with the rapid increase in production capacity in Gao'an and surrounding areas and the increasing homogenization of products, the inventory pressure of Gao'an ceramics companies has increased day by day in the past three months alone. The author has done a detailed statistics in August. As of the end of August, there were 23 production lines in Gao'an and surrounding areas (limited to Jiangxi Province), mainly covering interior wall tiles, exterior wall tiles, crystal tiles, and western-style glazed tiles. Production lines for polished tiles and other products. Blind optimism led to a large backlog of products, which led to the company's annual sales target could not be completed. According to the author's preliminary statistics, nearly 70% of the ceramic enterprises in Gao'an and surrounding areas indicated that they could not complete the annual sales target set at the beginning of the year, and 90% of the companies indicated that they could not complete the profit target for the whole year.
"Seven deaths, eight lives and nine turns over" is a true portrayal of the ceramic industry sales market over the years, but as of November, nearly 70% of Gaoan's inventory pressure has not been reduced, which not only greatly test the company's sales ability, but also Test the cash flow of the company. The pressure of inventory is like a time bomb, which can explode at any time and continue to invade from the matching to production to sales.
Contrary to the optimistic mood at the beginning of the year, the sales transcripts of the Gaoan ceramics industry for half a year exposed the internal diseases, and the real market is not as exciting as originally thought. In August of this year, the author began to visit the building materials market in the surrounding provinces of Gao'an and the living conditions of local ceramic enterprises, trying to find some answers. In the building materials market in Hunan, Hubei, Jiangsu, Zhejiang and other provinces, it was learned that due to the adjustment of the national “house control†policy, the market demand for medium and low grade ceramic products has decreased compared with previous years, and due to Hubei Dangyang and Yan In spring, Hunan Yueyang and other places built more than 20 production lines last year, and a large number of products were preferentially released to their own provinces, greatly reducing the output range of Jiangxi ceramic products. At the same time, the serious homogenization phenomenon has caused the price war of products to intensify. The cruelty of the market has greatly exceeded the scene of “all the way to the red†in 2009. The shabby market has opened a lot of jokes to many bosses with passion and passion.
The high level of inventory and the tightness of the bankruptcy test the viability of enterprises
"Inventory has increased in a large amount, which has caused tremendous pressure on our production and operation." Recently, the boss of Gao'an Ceramics Company poured a bitter into the author. According to the boss, as the inventory continues to increase, even the stacking of products has become a problem, and some enterprises have begun to build the second phase of the plant construction, used to serve as a temporary warehouse. If the inventory quantity reaches 2 or 3 times the monthly sales volume, there will be problems in the capital chain. Generally speaking, the inventory period of ceramic enterprises is normal from 30 days to 45 days, and the adjustment period is required from 45 days to 60 days. However, over 60 days, manufacturers will face the danger of collapse. According to the author's statistics, there are currently no fewer than 10 companies in the Gao'an ceramic production area with a product inventory period of more than 60 days, especially the interior wall tiles, exterior wall tiles and Siwa products. According to a person in charge of the Gaoan SME Credit Guarantee Center, due to the signing and construction of many new ceramic projects in the first half of the year, the four major banks of the country have lend a large amount of loans to Gaoan ceramics enterprises, but with the ceramic enterprises The continuation of the half-year off-season and the slow capital turnover have led banks and credit institutions to tighten lending to ceramic companies, and some even cut off lending to ceramic companies. The person in charge also told the author that due to the difficulty in the turnover of the capital of the ceramic enterprises and the “tightening†of bank lending, some enterprises with difficult capital turnover began to “reach†to the private capital. Although private capital can solve the difficulties of the enterprise for a while, the high interest rate also makes the ceramic enterprises as if they are in the abyss.
Some enterprises with oversupply will stop the kiln holiday in advance
Cheng Xiao also defeated Xiao He, pushing ceramics to the edge of the cliff, apparently a ceramic enterprise.
The annual sales target failed the inventory crisis
What is the reason that led to such a rare scene in Gao'an ceramics enterprises?
Ceramic manufacturers' over-optimism about the trend of China's ceramics market in 2010 is the "culprit." I remember that in May of this year, when the author interviewed Hu Yiheng, the chairman of Jiangxi Sun Ceramics Co., Ltd., he pointed out some irrational follow-up phenomena and investment motives in the ceramic industry. He said that the current stage (capacity growth) of the ceramic industry, investment (especially It is a small-scale homogenization product investment.) You can't hold the mentality of making quick money. You must have the preparation for doing business and long-term development, otherwise the risk is great. Sure enough, with the rapid increase in production capacity in Gao'an and surrounding areas and the increasing homogenization of products, the inventory pressure of Gao'an ceramics companies has increased day by day in the past three months alone. The author has done a detailed statistics in August. As of the end of August, there were 23 production lines in Gao'an and surrounding areas (limited to Jiangxi Province), mainly covering interior wall tiles, exterior wall tiles, crystal tiles, and western-style glazed tiles. Production lines for polished tiles and other products. Blind optimism led to a large backlog of products, which led to the company's annual sales target could not be completed. According to the author's preliminary statistics, nearly 70% of the ceramic enterprises in Gao'an and surrounding areas indicated that they could not complete the annual sales target set at the beginning of the year, and 90% of the companies indicated that they could not complete the profit target for the whole year.
"Seven deaths, eight lives and nine turns over" is a true portrayal of the ceramic industry sales market over the years, but as of November, nearly 70% of Gaoan's inventory pressure has not been reduced, which not only greatly test the company's sales ability, but also Test the cash flow of the company. The pressure of inventory is like a time bomb, which can explode at any time and continue to invade from the matching to production to sales.
Contrary to the optimistic mood at the beginning of the year, the sales transcripts of the Gaoan ceramics industry for half a year exposed the internal diseases, and the real market is not as exciting as originally thought. In August of this year, the author began to visit the building materials market in the surrounding provinces of Gao'an and the living conditions of local ceramic enterprises, trying to find some answers. In the building materials market in Hunan, Hubei, Jiangsu, Zhejiang and other provinces, it was learned that due to the adjustment of the national “house control†policy, the market demand for medium and low grade ceramic products has decreased compared with previous years, and due to Hubei Dangyang and Yan In spring, Hunan Yueyang and other places built more than 20 production lines last year, and a large number of products were preferentially released to their own provinces, greatly reducing the output range of Jiangxi ceramic products. At the same time, the serious homogenization phenomenon has caused the price war of products to intensify. The cruelty of the market has greatly exceeded the scene of “all the way to the red†in 2009. The shabby market has opened a lot of jokes to many bosses with passion and passion.
The high level of inventory and the tightness of the bankruptcy test the viability of enterprises
"Inventory has increased in a large amount, which has caused tremendous pressure on our production and operation." Recently, the boss of Gao'an Ceramics Company poured a bitter into the author. According to the boss, as the inventory continues to increase, even the stacking of products has become a problem, and some enterprises have begun to build the second phase of the plant construction, used to serve as a temporary warehouse. If the inventory quantity reaches 2 or 3 times the monthly sales volume, there will be problems in the capital chain. Generally speaking, the inventory period of ceramic enterprises is normal from 30 days to 45 days, and the adjustment period is required from 45 days to 60 days. However, over 60 days, manufacturers will face the danger of collapse. According to the author's statistics, there are currently no fewer than 10 companies in the Gao'an ceramic production area with a product inventory period of more than 60 days, especially the interior wall tiles, exterior wall tiles and Siwa products. According to a person in charge of the Gaoan SME Credit Guarantee Center, due to the signing and construction of many new ceramic projects in the first half of the year, the four major banks of the country have lend a large amount of loans to Gaoan ceramics enterprises, but with the ceramic enterprises The continuation of the half-year off-season and the slow capital turnover have led banks and credit institutions to tighten lending to ceramic companies, and some even cut off lending to ceramic companies. The person in charge also told the author that due to the difficulty in the turnover of the capital of the ceramic enterprises and the “tightening†of bank lending, some enterprises with difficult capital turnover began to “reach†to the private capital. Although private capital can solve the difficulties of the enterprise for a while, the high interest rate also makes the ceramic enterprises as if they are in the abyss.
Some enterprises with oversupply will stop the kiln holiday in advance
Cheng Xiao also defeated Xiao He, pushing ceramics to the edge of the cliff, apparently a ceramic enterprise.
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