Poor sales, more and more serious contradiction between overcapacity in the home building materials industry

At this point, the continued weakness in the domestic property market caused sluggish sales of home products, and the export has been repeatedly blocked; over there, furniture and building materials companies have consolidated their image and solid market share, continuously introducing production lines and developing new products. This has resulted in oversupply and severe production capacity. The excess of contradictions has become increasingly serious. The high rent of circulation links also makes home building materials companies actively hug themselves and save themselves through transformation and upgrading, alliance promotion, and self-built stores.

Industry Status Building Materials Industry: Low Investment Growth Rate

According to Wang Xiaoming, director of the Industrial Economic Research Office of the Development Research Center of the State Council, “At present, in the “13th Five-Year Plan” for the raw material industry that is being studied and formulated, the most important task for chemical industry, building materials, non-ferrous metals, and steel products should be to resolve excess capacity. problem."

At present, the growth rate of investment in the building materials industry is very low. Data show that from January to April this year, the building materials industry above designated size achieved a total of 1.3 trillion yuan in main business income, a year-on-year increase of 14.35%, and a total profit of 8.29 billion yuan, a year-on-year increase of 29.9%. Although the performance is increasing, the number of building materials enterprises above designated size has decreased and the prices of major products have declined. The market environment is still not optimistic.

In this regard, the China Construction Sanitary Ceramics Association Secretary-General Yu Bin told reporters that building materials is a rigid demand, and now the excess is actually a relative surplus. For example, Japan, Europe and the United States have experienced declining demand after long-term development, and if they expand production capacity, they will be surplus. However, our country now has demand, but its purchasing power is insufficient.

Ceramic Bathroom: Overcapacity 10%-15%

As the most traditional and most demanding ceramic sanitary ware industry in decorative building materials, early start-ups, many brands, and large production capacity have made it particularly evident that overcapacity has occurred in the process of market adjustment. Industry experts pointed out that the current ceramic industry's overcapacity ratio is about 10% to 15%. The direct result of excess capacity is the waste of resources and the difficulty in capital turnover.

"If you look at the market demand last year, the current capacity of the Taowei industry is about 10% to 15% of excess." Chen Huan, chairman of the Guangdong Ceramic Industry Association, said. He pointed out that due to the regulation and control of the property market, many ceramic tile companies are underemployed and the contradiction between overcapacity is highlighted.

For manufacturing, overcapacity is not new. According to Chen Huan, the ceramic industry will experience periodic fluctuations every two years. For example, under the influence of the financial crisis in 2008, ceramic companies were generally weak in operations. Since 2009, the industry has been transformed into a hot one. 2010 is also expected to meet expectations, but in 2011, It began to enter the downturn again. Since 2013, the situation has been particularly severe. “Some large tile manufacturers usually have more than a dozen, twenty furnaces, and now only one-third to two-thirds of the furnaces are in operation, or they are half-opened,” he said.

Cabinets: Overcapacity 5%-10%

Xu Xiuhua, executive chairman of the Cabinet Industry Association of Guangdong Province, said that although cabinet customization is the star industry in the current home market, brands are the most active, most concerned about the society, and the needs of young people are the largest, but due to the huge potential of the cabinet market, many outsiders There have been signs that the brands are still standing, and there is still a situation of excess capacity. The annual production capacity of cabinets in the country exceeds 20 billion, with an average surplus of 5% to 10%. As an association, we will appropriately warn companies not to blindly enter or launch new projects.

Furniture industry: Overcapacity 30%

From the rumors of the decline in the annual performance of several listed companies such as the royal family's furniture to the bankruptcy of a well-known furniture brand, the oversupply situation in the furniture industry is evident. Industry data shows that the domestic furniture industry is expected to have an excess capacity of about 30%, and the current industry utilization rate is only 60% to 70%. ”

Zhu Changling, chairman of the China Furniture Association, pointed out that the Chinese furniture market is changing from supply exceeding demand to oversupply. Whether it is Guangdong or Sichuan, where furniture production bases are located, the production capacity is in a state of excess. The industry is in a transitional period. In the near future, there may be a group of companies that will be Obsolete. If you want to seize the market opportunities in the "shuffle", the transformation and upgrading is the key.

Industry recommendations

Way out 1 transformation and adjustment mode

Although idle production capacity makes individual companies feel burdened, but for the development of the entire industry, industry experts said that overcapacity is also a good side. Chen Bingrong, executive deputy chairman of Guangdong Building Decoration Materials Association, believes that some companies with high energy consumption, lack of technical content and marketing tools may be converted or closed down due to overcapacity, which is also forcing companies to upgrade and accelerate the survival of the fittest. Facilitate the implementation of new technologies, new equipment, and new research and development.

Zhai Bin, Secretary General of the China Building Sanitary Ceramics Association, pointed out that companies must realize that the era of high-growth development models in the past is over forever. Therefore, in the current situation, companies must adjust the development model, that is, from the past heavy quantity, We must adjust the speed to the level of heavy efficiency and quality, and we should do a good job of market research before putting into production, so as to avoid blindly expanding production capacity due to misjudgement of demand.

Outlet 2 focuses on marketing growth

In marketing, actively exploring the market to digest existing production capacity has also been valued by ceramic companies. Zhang Yifei, general manager of Dongpeng Tiles Guangzhou Branch, said that in the second half of the year, it will be more active in “grabbing sales and maintaining growth.” The worse the market is, the more it is necessary to carry out popular products to handle inventory in order to digest the inventory. Second-hand housing and two-restricted rooms are the markets that ceramic sanitary ware companies need to attach importance to, which will help to activate funds and release production capacity.

Outlet 3 R & D New Products for Innovation

Facing the off-season market, many flooring companies seek to innovate in product R&D and processes, and provide new raw materials that help new product R&D, with the aim of injecting vitality into the off-season market through the differentiation of new products. Liu Shuozhen, chairman of Living House Flooring, said that if you want to successfully digest production capacity, floor companies can no longer blindly pursue or seek to expand production, and can no longer be as extensive as before to do "big goods", but to use existing human and material resources. Make more refined, technological content and value-added flooring products.

Way out 4 brand Baotuan save themselves In response to the store's high rent, saving circulation costs, in addition to the Union's promotions, the current many building materials brands began to Baotuan self-help, in the form of industrial capital self-built sales channels. For example, at the end of last year, 21 home building materials companies jointly established Zhongtao Investment Development Co., Ltd.; in July of this year, Guangzhou had 26 furniture building materials agents joined the e room business model, and built a furniture and building materials experience center.

Jia Feng, president of Huamei Lijia, said: “The large number of channel links and high costs in the building materials industry are major problems. The biggest pressure is rent, and it is appropriate to reduce the rental cost to 5%.”