Environmental Policy and China's Ceramic Industry
Ceramic manufacturers should be aware of several trends that are arising from China's environmental protection policies.
After the storm of environmental protection policies in recent years, what changes have occurred in China’s ceramic industry? Following are some noteworthy trends for ceramic manufacturers to be aware of.
More Standardized, Orderly Market
Many ceramic manufacturers in China have been forced to shut down because their environmental protection procedures were incomplete and failed to meet the new national requirements. After this major rectification, small-scale, disorderly enterprises will continue to inevitably fall out, leaving behind quality enterprises with formal production and sound development policies.
Rational Price Increases
Historically, the pricing of many high-end products was not appropriately increased. This was the result of several issues, including overcapacity in the market and shady business practices involving cut corners and lowered prices to deliberately disrupt market prices. However, under the tightening of new policies, a large number of non-standard companies will be severely punished, which will affect the amount of stock in the market.
An overall increase in prices for ceramic products is bound to result when the contradiction between supply and demand is further intensified. Additional factors impacting pricing increases will include raw material cost increases caused by inflation and rising environmental costs.
In the past, some managers of ceramic companies would laugh at those who took the branding route, considering it to be a waste of money. Now, however, they are seeing that their short-sightedness is the real joke, because the future of branded enterprises will be brighter and brighter.
Since the ceramic market in China was cleaned up following the environmental protection policies, the surviving outstanding companies must have an ace in the hole. Competition in the ceramic industry will become even more intense in the future. Companies that have a good reputation can stay in the lead. Therefore, manufacturers that focus on branding strategy will usher in additional business opportunities.
Competitive High-Quality Products
Ceramic manufacturers in China that want to stand out in the strong competition must also put more effort into the quality and added value of their products. Outdated promotional practices will no longer be effective. In the future, consumers will pay more attention to the value of the product.
The reason that so many companies shut down under the storm of environmental protection policy is that their outdated technologies and nonstandard management systems did not keep pace with the development of the times. Due to a lack of innovation with their ceramic products, many companies are dealing with obvious homogenization and severe overcapacity. The environmental protection rectification has forced manufacturers to reform their technologies.
In the future, we will see many companies carry out technological reforms as a result of prompting from policy and the urgency of product upgrades. For manufacturers focused on long-term development, technical reform will be the first priority.
Reliable Resource Integration
In addition to rectification and transformation, the ceramic industry should concentrate more on technical exchange and resource integration with insiders. To drive technological innovations to market applications and lead the technological direction of the global ceramic industry, Ceramics China will be held June 18-21 in Area A at the Canton Fair Complex. Many key players in environmental protection technology for the ceramic industry from China and abroad will showcase their most advanced products and technologies.
For more information, visit http://en.ceramicschina.com.cn.