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Recent Changes in China`s Ceramic Industry

After the storm of  environmental protection policy, the Chinese ceramic industry undergoes a range of changes. The main aspects related to this new situation are summarized in the following.

Market Tends to more Standardization and Order
The Chinese Environmental Protection Department shut down many enterprises – the reason is that the environmental protection procedures of these enterprises were incomplete and failed to meet national requirements. After this major rectification, small-scale enterprises that are disorderly developed will inevitably fall out, leaving behind enterprises with formal production and sound development. 

Products will Meet Rational Price Rises
Not long ago due to market overcapacity many tricky businessmen cut corners and deliberately lowered prices resulting in market price disruption. Therefore, for many high-quality products the prices could not be raised. However, under tightening policies a large number of non-standard enterprises will be severely punished, which will affect the stock in the market. When the contradiction between supply and demand is further intensified, coupled with raw materials and supporting price increases caused by inflation, and the rising environmental costs, this will lead to the overall rise of ceramic products.

Brand Advantage is Revealing
In the past, some managers of ceramic companies looked down people who took the branding route, and considered it to be a waste of money. Today, the future of branded enterprises will be brighter and brighter. After the storm of environmental protection policy, the ceramic market was cleaned up, and the survived outstanding company must have an ace in the hole. Competition in the ceramic industry will become even more intensive in the future. Therefore, enterprises focusing on branding strategy will usher in a business opportunity.

High Quality Products will be more Competitive
After the storm of environmental protection policy, the companies must put more efforts into products quality and their added value. The so-called promotion of product materials and functions is already outdated, consumers will no longer pay for it. In the future, they will pay more attention to the product value.

Ceramic Industry will Usher in the Trend of Technological Transformation
The reason why so many enterprises shut down under the storm of environmental protection policy is that outdated technology has not kept pace with the development. Due to the lack of innovation, many enterprises have obviously severe overcapacity. The environmental protection rectification has forced enterprises to reform their technology. The reasons for so many pollution problems are underdeveloped technology and nonstandard management. In the future, many enterprises will spontaneously carry out technological reforms due to policy force and product upgrade urgency. The first priority for long-term development will be the technical reform.

Reliable Platform for Resource Integration
In addition to rectification and transformation under the environmental protection trend, the ceramic industry should concentrate more into technical exchange and resource integration with experts. The largest event in global ceramic industry in China, CERAMICS CHINA, will be held on 18– 21 June 2019, at Area A in the Canton Fair Complex in Guangzhou.

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