Overview of the ceramic industry and focus on home furnishing hot spots.
Hello everyone! Today is June 26, 2022. Let’s take a look at the hot topics that Zhongtaojun focuses on in this issue of "Zhongtao Daily·Weekly Comments".
01
How hard does it take for real estate companies to sell houses? Wheat and garlic house swap!
On June 21, two "alternative" house sales posters suddenly became popular on the Internet - the Jianye Riverside House in Quanquan County, Shangqiu City, Henan Province launched a "2 yuan/ Jianye City in Qixian County, Kaifeng City, Henan Province has launched a "5 yuan/jin, exchange house for garlic" campaign. However, on June 22, the above two activities were suddenly suspended, causing a lot of controversy. Some experts believe that from the perspective of healthy development of the industry, real estate companies need to study more mainstream and sustainable marketing practices to truly allow policy tools to stabilize the property market to take effect and boost real estate market transactions.
Source: China Business Daily
It is understood that the two marketing actions of "garlic house exchange" and "wheat house exchange" are both from real estate projects under the "Henan real estate brother" Jianye Group.
There are two different opinions on the Internet regarding these two marketing actions launched by CCRE Group. One view is that this activity is a win-win situation for farmers who buy houses and real estate companies. For farmers who really need to buy a house, it is indeed cost-effective to exchange crops for houses; another view is that if they can offset the down payment of 160,000 yuan, , approximately 80,000 kilograms of wheat are needed, and the national average wheat yield per mu is 800-1,000 kilograms. Based on this calculation, a family that wants to successfully redeem a down payment of 160,000 yuan needs to have at least 80 acres of cultivated land. This marketing activity can be said to be more of a gimmick than a actual, even digging holes for farmers.
Of course, some people also ridiculed, "It really corresponds to Jack Ma's words, house prices are like onions, but you need a lot of onions."
In fact, when it comes to promoting real estate sales, in addition to the weird tricks of real estate companies, there are also frequent big moves by local governments. For example: in Henan, Sichuan, Zhejiang, Jiangsu and other provinces, "house tickets" have returned to the scene (Zhengzhou, the capital of Henan Province, was the first provincial capital city to introduce a "room ticket" policy), causing many netizens to say that they feel like they have traveled to the last century. Feelings; in Qingdao, Shandong, a sub-district office issued a letter to the community, requiring each community to help promote new houses, and the number of houses sold was included in the year-end assessment and linked to bonuses; in Wuhan, Hubei, the newly launched house purchase policy is unprecedentedly powerful...
The main content of the house purchase policy launched by Wuhan is: registered residents who already have two houses in the purchase-restricted area can purchase an additional house (the policy will be implemented until December 31, 2022). In other words, households registered in Wuhan can buy a third house in restricted purchase areas. If there are parents who come to Wuhan to live with their children, or who have a second or third child, they could already buy one more house before. Now that the above-mentioned new policies are superimposed, the latter two types of families can buy a fourth house in the purchase-restricted area. Houses owned by households registered in this city in Wuhan Economic Development Zone, Dongxihu District, Huangling District, Jiangxia District, Caidian District, Xinzhou District and other areas are not included in the family's existing housing units (some areas in the above-mentioned districts were previously restricted) . For non-local resident families who purchase ordinary housing for the first time in the purchase-restricted area, the number of years for paying social insurance or personal income tax in Wuhan will be adjusted from 1 year to 6 months in total within 3 years.
Behind the repeated strange moves of real estate companies and the frequent big moves of local governments, there is hidden the truth that the real estate market is slowly recovering under the stimulation of a series of favorable policies.
The real estate market determines the quality of the home building materials industry. In this context, on the one hand, ceramic companies must be fully prepared to live a hard life; on the other hand, they may also wish to learn from the imagination of real estate companies and spend more time on product development and marketing innovation.
02
How strong is the government support, and how severe is the situation in the ceramic industry?
Foshan Municipal Party Committee and Government held a meeting at 9 a.m. on June 22A symposium with representatives of ceramic industry enterprises was held in the small auditorium of the municipal government agency. The meeting was chaired by Zheng Ke, Secretary of the Municipal Party Committee. Representatives of the participating enterprises spoke about the production and operation of the enterprises this year and put forward demands and work suggestions. At the meeting, Zheng Ke, Secretary of the Municipal Party Committee, made an important speech and pointed out:
1. Firmly support the ceramic industry to become bigger, stronger and better. There are three key points for enterprise transformation and development: the first is to do research and development; the second is to build a brand; the third is to build the market. 2. Make every effort to help enterprises solve practical difficulties and problems. At the meeting, the municipal party committee office asked the municipal party committee office to list the problems raised by the enterprises one by one. Those that can be solved should be solved as much as possible, and those that cannot be solved should be explained one by one. 3. Comprehensively optimize and improve corporate service levels. Foshan City is now building a first-class business environment. It has made building a first-class business environment the No. 1 reform task of the Municipal Party Committee. The efforts are very strong and the results are very good. Support policies, especially tax incentives, and the price of natural gas were mentioned at the meeting. In short, the Foshan Municipal Government will do everything possible to solve these problems, provide better conditions for enterprises, and provide better services.
Source: Foshan Ceramics Industry Association
Regarding this major news, Zhongtaojun’s headline article on Friday was “We firmly support the ceramic industry to become bigger, stronger and better! What signal did the high-profile symposium in Foshan send? Views have been expressed in 》——
The height of an industry often determines the height of a city, and the quality of the business environment built under the leadership of the government often determines the height of the industry. In other words, government policies and actions have an immeasurable impact on the direction of the industry.
From this perspective, the Foshan Municipal Party Committee and Municipal Government held a Foshan Ceramics Industry Symposium on June 22, hosted and delivered by the Secretary of the Municipal Party Committee in person. It can be said that it clearly demonstrated its firm support for the ceramics industry. The price of ceramic materials has skyrocketed, the price of natural gas continues to rise, freight prices have skyrocketed, and costs remain high. It is difficult to sell and collect payments under real estate regulation..." The ceramic industry under difficult circumstances has been injected with a shot in the arm, boosting confidence in the ceramic industry. and maintaining stability are of great significance.
In this regard, some netizens left comments, "It sends a signal that Foshan ceramic tiles are in crisis, and they will be overtaken if we don't pay attention to them." "A responsible government will give many ceramic companies a shot in the arm! Come on, "Ceramic Man".
However, in connection with the sluggish real estate market mentioned above,The market situation and the many problems faced by the ceramic industry itself, especially the various negative emotions caused by many ceramic companies suspending kilns, cutting wages, and laying off employees, also reflect the unprecedented predicament of the ceramic industry from another perspective.
But ceramic people should firmly believe that the most difficult time is when success is not far away.
03
Does the central warehouse model have more advantages than disadvantages or is it a mixed bag?
On June 18, "Co-creation, sharing, and win-win—Guanzhu Shared Warehouse Strategy Release and Cooperation Signing Conference" was grandly held in the conference room of the brand headquarters. The meeting gave an in-depth interpretation of the new model of Guanzhu's "Shared Warehouse". As a "4S store-style" service station for Guanzhu Tiles, Guanzhu's "Shared Warehouse" will be located in more than 20 cities including Beijing, Tianjin, Shanghai, Guangzhou, Xi'an, and Chengdu. , carrying main services such as local warehousing, cargo transfer, processing, distribution and installation.
Source: Guanzhu Ceramics
Since 2018, more than 300 ceramic tile dealers interviewed in the China Ceramics Network's "National Tile Market Survey" project have stated that the "central warehouse" concept and model is one of the issues they are most concerned about. Among them, a dealer in Chengdu who has been in the business for more than 30 years pointed out from a high position, "The central warehouse is the bridgehead for ceramic tile brands to expand their business. Whoever seizes the central warehouse problem means who can seize the future."
In the ceramic industry, I believe most people are optimistic about the central warehouse model. However, this is only one side of the matter. Although the central warehouse is good, it still depends on how the brand headquarters is implemented. Many industry insiders have expressed different views on the central warehouse model.
“Many ceramic tile brands launched centerpieces many years agoThe warehouse model has advantages and disadvantages, and the dealer still pays for the increased costs. ”
“One more middleman.”
"The problem is that the central warehouse mentioned by the manufacturer is not the central warehouse you imagined. This central warehouse is operated by the general agent. The manufacturer finds a powerful agent to set up the central warehouse. It is convenient to pick up the goods, but the price will be increased for you. Dozens of points. Don’t ask me why.”
“It is even more difficult for manufacturers to directly build central warehouses to further seize dealers and customer resources for small retail orders.”
“I think the profits of ceramic tiles are too thin. Manufacturers directly build warehouses to reduce the number of intermediate links. In the past, large dealers also prepared inventories, but now terminal consumption has decreased and business is difficult to do. Dealers feel that stocking up on goods It’s not cost-effective and they don’t want to stock up, so the manufacturers just buy it themselves, which is a sign of involution.”
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What do you think about this? Welcome to comment in the message area at the bottom of the article.
04
More than 80% of consumers are willing to choose decoration companies, where will ceramic tile retail go?
In May this year, the Market Supervision Bureau and the Municipal Consumer Protection Committee of Shaoyang City, Hunan Province conducted an online meeting on issues reflected in consumer complaints [Enter Black Cat Complaints] in the home decoration and building materials industry. Investigative activities. The survey results show that 81.96% of consumers are willing to choose professional decoration companies to contract for repairs, while 18.04% choose to purchase building materials and hire craftsmen for decoration. 50.71% of consumers reported that after signing the decoration contract, the decoration company failed to complete the work within the agreed time limit; 51.74% of consumers said that the decoration company did not construct the materials and design drawings in accordance with the contract, and also added and changed items without authorization and overcharged Cost issues; the actual decoration price does not match the contract. In terms of the quality of decoration services, problems such as unqualified laying of hidden projects, uneven walls and floors, hollow tiles falling off, and cracks on the walls are very prominent, accounting for 64.27%; decoration problems with "substandard" materials accounted for 29.57% %.
Source: China Consumer News
Although this is only a survey of one city in Shaoyang, "a glimpse of one spot reveals the whole leopard", which can also provide considerable reference value to ceramic people.
The results of this survey show that it is a general trend for owners to choose professional decoration companies to decorate their homes. It can be speculated that in the future, the proportion of ceramic tile retail in the total ceramic tile sales may further decrease. Even if the proportion of finely decorated houses drops to the previous situation, the market released by this will most likely be occupied by decoration companies, especially the whole house. Pretending to be stolen by the company.
05
Evergrande will announce its restructuring plan at the end of July. How is the debt collection progress of Tao Enterprises?
Recently, the Evergrande incident has made new progress. China Evergrande’s latest announcement stated that it will announce a preliminary restructuring plan before the end of July. The reporter also learned that many of Evergrande’s projects have been taken over by state-owned enterprises in many places. However, most in the industry believe that Evergrande's future debt resolution will still require a long and difficult process. It is understood that in 2021, three ceramic companies have made impairment provisions for Evergrande Group and its member companies, with a total amount of impairment provisions reaching 1.067 billion yuan. Recently, some ceramic companies said that for the receivables of real estate companies, the company has established an overdue receivables recovery team and will actively promote related debt recovery solutions focusing on asset offset debts. As the policy picks up, funds recovered and other debts will be recovered. Judging from the assets used to offset debts, certain results have been achieved.
Source: Taocheng Daily
It is reported that Evergrande has more than 2,000 creditors, and its debt to suppliers alone is as high as 500 billion. One type is commercial paper and the other is account arrears. However, there are 28 A-share listed companies that have stepped down from Evergrande, of which 18 suffered losses and 10 had a sharp decline in net profit. Relevant data shows that as of the end of 2021, Golden Mantis and GrandlandThe debt receivables held by the four home improvement companies, Bauing, and Quanzhu, are as high as 21.8 billion yuan, which are 7.73 billion yuan, 5.864 billion yuan, 4.184 billion yuan, and 4.058 billion yuan respectively. Compared with these "taken advantage of", Tao Qi's step on Lei Hengda can only be said to pale into insignificance.
Judging from the above situation, it is still difficult for Taoqi to successfully recover all the arrears from Evergrande.
