Bathroom market demand shakes SMEs or faces difficulties

With the tightening of domestic credit, continuous increase in capital recovery pressures, and slowdown in key projects and infrastructure construction, there is limited upside for sanitary ware sales, and downward pressure has increased, affecting the supply and demand relationship of sanitary wares and the uncertainties in the prices of sanitary ware products. How do bathroom companies face the bathroom market that is not conventionally licensed?

Demand fluctuates under the influence of factors such as credit tightening and inflation expectations. The market's demand for sanitary wares inevitably raises concerns.

In the fourth quarter, the south was the traditional peak season. On the one hand, the weather turned cold and good for construction, and it also passed the rainy season. Combined with the deadline before the end of the year, the bathroom requirements in the fourth quarter were generally better than the third quarter.

In the fourth quarter, the north was a traditional off-season. For example, in the northeast and Xinjiang regions, due to winter construction operations in the end of October or early November, demand fell. In particular, during snowfall and freezing weather, demand was even lower during the year. At the same time, from September to October, the peak sales of real estate did not prosper. As a result, the market expects the number of newly started real estate projects to decline, which in turn may cause demand to be under pressure in the first half of next year. The superposition of the two factors will make the off-season region relatively lighter, and the peak season region will be less prosperous than in previous years.

Judging from the situation in previous years, the sanitary ware industry has a concept of winter storage in the fourth quarter, and bathroom prices have fallen more in the off-season. However, in recent years, some regions have changed the profit model and operating habits of winter storage, and in the off-season, stopping production capacity has kept prices high. Therefore, although the northern part of the region entered the off-season in the fourth quarter, but the price of sanitary ware is not necessarily reduced sharply, and the price of sanitary wares in areas where winter storage habits are continued may drop significantly.

The southern region is divided into two categories. First, in the third quarter of Guangdong and Guangxi, the price of sanitary wares was limited due to electricity restriction. Currently, the power supply restriction factor was lifted. The sanitary ware price dropped during the peak season. Second, the sanitary ware prices in the third quarter of East China have declined and entered the peak season. It is expected that the bathroom prices will recover slightly.

All this indicates that bathroom needs will be suppressed to some extent.

Power shortage in the busy season The current consumption power of the home market is gradually entering the period of the off-season. In the past month, interviews with the heads of many home stores also revealed that many stores have already seen a marked decline in traffic and merchant sales. Industry analysts believe that this depends to a large extent on the lack of demand for rigid domestic consumption and the negative impact of the real estate market on downstream consumer confidence.

Faced with this situation, many businesses are actively seeking a way out. In order to prevent the market from sinking into “promotional loach” and consumers’ infection with “promotional fatigue”, Panlong ceramics headquarters is actively exploring more public welfare actions, such as replacing water-saving toilets for old communities, avoiding simple price concessions, and improving products as much as possible. Added value with service.

Unclear price movements It is not only aesthetics but also health, durability and hygiene that are required to buy a product. If a variety of effects can be achieved, then a certain costing must be performed on the product itself. Here are three factors that explain the market that affected the price of sanitary wares in 2011.

For functions, consumers not only require hygiene and cleaning functions but also integrate health care functions, appreciation functions, technology, and entertainment functions. From the consumer's consumption trend, in the future market, the sanitary ware industry will show a variety of development trends. The survey found that the design style has a focus on the value of use, with a greater emphasis on the combination of usability and aesthetics, from appearance to function selling, from multifunctional to practical, but the price of sanitary ware on the market is quite different.

Counterattack: Do everything possible**

Recently, one after another, news of the SME’s central bankruptcy has spread from Zhejiang and Guangdong. The central bank raised the deposit reserve ratio of deposit-taking financial institutions by 0.5 percentage point again on June 20, which is the sixth time this year to increase the deposit reserve ratio. The central bank’s monetary policy tightened, the market capital pressure doubled, the SME’s gambling became more difficult, and the sanitary industry certainly would not be spared.

The capital chain was strained. Zhejiang SMEs closed down in succession. The sixth time during the year to raise the deposit reserve ratio, the central bank’s wallet became tighter and tighter. Did the money shortage really come?

According to media reports, Zhejiang and Guangdong have indeed experienced the phenomenon of SME centralization. One of the most interesting is that after many parties confirmed that after the closure of three well-known private enterprises in Wenzhou, Zhejiang, business owners due to the large sum of money to escape let SMEs see the cruel market today, related to "money shortage" and "flooding" and other discussions Sharp rise in temperature. According to the president of the Ministry of Commerce, the difficulty of enterprises has affected the normal operation of many SMEs.

Banks are hard to come by, followed by the rise of private lending, interest rates are also rising, SMEs have borrowed money, production and management have not kept up with the capital chain will inevitably lead to the break, the bankruptcy of enterprises has become a matter of course. According to industry sources, the root cause of the problem of borrowing difficulties is the bank’s tightening of credit, and the multiple increase in the deposit reserve ratio has frozen a large amount of bank funds. According to reports, a large part of the funds of private lending institutions comes from banks. This year, the central bank raised the deposit reserve ratio six times in succession. The deposit reserve ratio of large financial institutions reached a historical high of 21.5%, which led to tight bank funding and limited funding sources for private lending institutions.