March 28, 2024

The ceramic industry was threatened by a credit abduction and credit crisis

The days of ceramic enterprises are not good, and the upstream supporting enterprises that are affected are more like needles and felts. Many chemical companies have even owed more than half of their outstanding goods, and their operations are worrying.

The credit phenomenon that prevailed in the industry became more and more mad in 2010, and even the general manager of Aoxiang Ceramics Marketing, Lu Zheng, said in his chat that “the credit was kidnapped and the factory was abandoned”. At this time, not only the private factory, but also the brand enterprises, upstream chemical and other supporting enterprises were also kidnapped by the credit bureau, and they were nailed to this constantly reciprocating but difficult to break.

At the beginning of this century, with the expansion of the consumer market and the launch of many ceramic enterprises, the sales channels of ceramic products began to change from the ceramic product agency system to the product distributor system.

In the process of channel transformation, some ceramic companies in the future have begun to launch a credit sales system for selective and ceramic products for some distributors in order to quickly establish a foothold in the ceramics sales market. Unexpectedly, this move has almost driven the follow-up behavior of all ceramic companies in the sales process. The ceramic credit sales system has become the default and unspoken sales system in the ceramic industry by both factories and businesses.

Under this system, in the ceramics sales terminal market, relying on the strong support of distributors of ceramic products (mainly credit), and relying on aggressive sales models (the amount of credit given by ceramic manufacturers to dealers in the retail and engineering cooperation process) The great product sales flexibility), a large number of strong ceramic terminal sellers emerged, and the right to speak of ceramic terminal dealers has also received unprecedented attention.

While the credit system of ceramic manufacturers created the terminal dealers, they also dragged themselves into the shadow of the debt generated by the ceramic dealers due to the credit system. Many ceramic enterprises have gradually become cold-blooded because of the disputes over the credit obligations of product distributors in the early stage, and even embarked on the legal arbitration seat.

Dragging a business rich business
From the end of the 1990s to the beginning of the new century, it was the stage of rapid advancement and rapid development of China's ceramic industry. At this stage, a group of state-owned building sanitary ceramics enterprises represented by Foshan Ceramic Industry and Trade Group Corporation, Tangshan Ceramics Group Company, Weifang Merrill Ceramics Company, Sichuan Ceramics Factory, etc.; Yingying Ceramics Group, Dongpeng Ceramics Group, A group of collective building sanitary ceramics enterprises represented by Huida Ceramics Group; a group of private building sanitary ceramics and machinery represented by Xinzhongyuan (Group) Co., Ltd., Hongye Ceramics Co., Ltd., Keda Ceramics Co., Ltd., etc. Manufacturing supporting enterprises; three-capital enterprises represented by American Standard, Beijing Dongtao, Xinyi Ceramics, etc., ceramic enterprises of various economic components have achieved rapid development.

"At that time, the overall profit margin of ceramic products was large, and the market was good, so the products could not be sold. However, the strength of the business was generally weak. Therefore, in order to speed up the delivery frequency and product sales, the company adopted a distribution policy." Xia Guangming, general manager of Foshan Ojue Tiles, spoke of the phenomenon of the distribution of the ceramics industry in the 1990s.

Some industry veterans also told reporters that around 1994, in the collection system and state-owned enterprises, the phenomenon of distribution of goods, represented by Roland, Fotao Group, Sanshan Ceramics, but the amount of credit is also within the enterprise's affordable range.

“The distribution policy adopted by the company has indeed supported a number of excellent distributors. However, due to many loopholes in the management of enterprises at the time, it also brought a lot of problems for the enterprises. The disputes arising from the collection of goods without payment also occurred from time to time. The above-mentioned Xia Guangming said that the ceramic enterprises in the 1990s were mostly state-owned or collectively owned enterprises. The distribution of goods or loans was popular with “white bars”, and hundreds of thousands or even millions of yuan were sent to dealers. In the hands of the company, 50% of the dealers did not repay after making money.

"At that time, it was a state-owned system. The dealers also thought about picking up the oil of the country. In the end, the company did not have a special person to chase the money. In this way, there are more than one or two enterprises that have been dragged down." According to industry insiders, a group of state-owned enterprises Among the ceramic enterprises, there are brands that have closed down because they have not received the money, but at the same time, they have also expanded a number of dealers to “accumulate” the first barrel of gold for the development of the business.

Driven by some state-owned enterprises, private enterprises that have just started and urgently need to open up the market naturally will inevitably repeat the same mistakes. "With the rapid increase in production, the market for ceramics has been rapidly reversed from a shortage of economy to a surplus economy, and price wars have come one after another. In order to compete for market share, companies have adopted distribution." Xia Guangming said.

“Some big companies will send more goods in the form of distribution when they supply the dealers, but this is only based on the stability of the manufacturer relationship.” Mr. Liu, the general agent of a brand in Foshan, Hunan, said he is engaged in ceramics. For more than 10 years, the industry has also enjoyed the treatment of distribution credit. This kind of treatment does somehow turn over the merchant's funds.

“In order to collect the purchase price, some enterprises sent people to go to the market to recover, but some of the people sent to the market not only did not recover the arrears, but they were “reacted” by the merchants, and they went after the merchant’s There is no trace of the film, the company is also on the salary, travel expenses, it is really lost the wife and the soldiers." Mr. Liu said.

According to industry analysts, in the past few years, it was essentially a business that needed development funds. There is a demand for distribution. It is a model of cooperation between manufacturers. Nowadays, it is a means of operation for enterprises to survive and grow. With the intensification of competition, the ceramics industry bid farewell to the era of profiteering, the company's quality and brand awareness has significantly increased, and began to face the strategic choice of low-cost and differentiated operations, therefore, market share has become a hot spot of competition, and distribution is quickly occupying the market. Effective means.
 

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