subject: Cimic Stands Out To See How A Bmw [print this page] In the ceramic industry, the growth rate of the general case, the CIMIC is the best way for future growth to faster growth, more space in the sub-products such as mid-range products. The output of the current mid-range products in Guangdong and Shandong Province, approximately 50% of total production to 60%, but only 15% of brand concentration
In Shanghai Baoshan Homemart building materials supermarket on the first floor, ceramic tile occupies one third of the pavement. Among them, the Nobel and CIMIC two brands neighbors, the most eye-catching, they are precisely the domestic construction ceramics industry champion, runner-up. And placed 10 meters away, compared to other middle and low brand ceramic tiles, they are a 45 cm 30 cm plain white tile priced at 20 yuan to 30 yuan, whereas other similar products in the 10 or 2 to 5 yuan.
Today, the CIMIC Tile manufacturers?? Shanghai CIMIC Building Ceramics Co., Ltd. (the "CIMIC") visit the Shenzhen Stock Exchange Small plates, raising funds 482,600,000 yuan. The main attack high-grade ceramic products for enterprises, although now "stand out", but the future may need their own products into the area next to the mid-range brand, as compared to high-end market, mid-range market have more room for growth.
This, Lee Chi-hung, chairman, said the company is doing is to become a "tile industry BMW". Can be divided into 3 series BMW 5 series and 7 series of three. The 7 Series is the first introduction of high-end products, to 980 thousand to 2 million yuan; mid-range 3-series as long as more than 30 million. "So many years down the 7-series production, but 50 thousand a year, but the 5 series and 3 series are a total of 750 000 per year."
How to make a 5 series and 3 series of good products, without affecting the brand image of the 7 Series, which is the focus of CIMIC to consider, which will be decided CIMIC future success and failure.
Have to enter the mid-range market
High-end retail tile market, the average price at 100 yuan / square meters, similar to the CIMIC's main producing high-grade ceramic manufacturers in the East China's Jiangsu, Zhejiang area. Four brand Nobel, CIMIC, champion and Asia constitute the high-end products such as the total share of 60%. However, sales of high-end market, only 5% of the total sales.
And 60 yuan / square meters of mid-range market is now in a state of perfect competition. Although the mid-range products, production concentrated in Guangdong and Shandong Province, approximately 50% of total production to 60%, but mid-range products, the brand concentration is only 15%. The number of companies in the region more than a small scale, most companies rely on price war to snatch market share. Low-grade ceramics in the Sichuan area, most of the products are cheap, low grade, its overall production by 6%.
Therefore, low-end severe excess capacity, mid-range market potential for development.
From a horizontal comparison with other countries, in 2004 China's per capita consumption is about 1.4 square meters ceramics, building ceramics in China is expected to market the next double room for growth there. This space for the ceramic manufacturers and not too concerned.
Growth rate in the industry, under normal circumstances, the best way to future growth company is to produce faster growth, more space in the sub-products such as mid-range products. Lee Chi-hung to reporters an example, such as Shanghai's Hua Shan, Ruijin and Zhongshan Hospital, these hospitals are all CIMIC customers. Then there are a total of 30 district level hospitals, although the recognition of their products, because the hospital's budget constraints, it is difficult what with CIMIC. Lee Chi-hung said that this is why the reason to enter the mid-range market.
Strategy for reducing costs
CIMIC practice "to consolidate the high-end, high-band, expanding the terminal, to the promotion of high" strategy. But the ceramic manufacturing consumes large amounts of energy, the energy shortage in today's circumstances, enterprises are facing the high cost of the problem.
