Documentary development of Chaozhou ceramic industry under the influence of financial crisis

Chaozhou, a city deeply connected with ceramics.

For more than 1300 years, it has been one of the places where China produces ceramics;

In the past 30 years, before the reform and opening up, it has always been the birthplace and main export destination of the Chinese craft daily porcelain trend;
The city has witnessed a wave of ups and downs over a thousand years. In 2004, in the eyes of the world's admirable, won the "Chinese porcelain capital" crown.

However, by September 2008, when Chinese porcelain was heading for the “World Porcelain Capital”, a huge storm struck from the ocean...

First, China's craft daily porcelain, most of which is produced in Chaozhou; nearly 70% of Chaozhou's ceramics come from Fengxi; Fengxi's ceramics, 2/3 exported to Europe and the United States.

Therefore, when the financial crisis began to erupt and spread, Fengxi ceramics manufacturers immediately felt the cold in winter.

Orders have been significantly reduced, and even famous brands such as Great Wall and Weiye are not immune. "In the past years, our orders have not been worried before the Spring Fair. Sometimes it is too much to do. But now, even in the peak season of Christmas, there are very few orders!" The person in charge of a key enterprise in Fengxi said frankly. Until the Spring Festival this year, some orders began to appear. "However, the delivery period is very short, only one or two months. In the past, many customers were single-year contracts for one and a half years." Tell the reporter. This is a company specializing in the development and production of high-grade daily-use porcelain. More than 80% of its products are sold to Europe and America. The general manager of another ceramic backbone enterprise in Chaozhou also confirmed this statement. He said that the orders were pitiful; some of the original contracted customers even risked being fined for breach of contract and demanded that the delivery period be slowed down.

When large enterprises and brand enterprises are still “not enough to eat”, their subordinate secondary factories are in worse condition. In order to protect themselves, another brand company in Fengxi gave up the supply of its second-tier factory orders. Therefore, some small factories and small workshops that originally survived the “outsourcing processing” of large enterprises had to stop production.

“The smaller the enterprise, the more unique the product structure, and the lower its anti-risk ability.” Zhang Shiyi, secretary of the Fengxi District Party Committee, told the reporter. A company that has been producing traditional tableware for many years has maintained a turnover of about 10 million yuan in the past year, and even reached 15 million yuan at the peak. However, under the attack of the financial turmoil, the total value of annual exports fell to more than 1 million yuan, and the number of employees was reduced from 500 to 600 people in the peak period to about 100.

The situation in the sanitary industry is even more severe. According to the preliminary statistics of the Fengxi District Committee, about 20% of the enterprises in the industry have been unable to start work due to the crisis. A person in charge of the company told the reporter that the export business could not be done at all. On the one hand, the export tax rebate rate is still 5%, not as high as 11% in the process of daily-use porcelain, and the export enthusiasm of enterprises is frustrated. On the other hand, due to the financial crisis, the domestic infrastructure industry has slowed down and demand is weak.

The supply of porcelain mud and gas has always been regarded as a “barometer” to feel the true state of Chaozhou ceramics production. According to incomplete statistics, last year, the total supply of porcelain mud in the whole Fengxi area was reduced by 1/3 compared with the previous year, and the gas supply was also reduced by 1/3.

Chaozhou in the early spring, warm and cold, many companies that were originally expected to start work on the eighth day of the first month, after a simple start-up ceremony on the same day, have not yet officially produced. Zhang Shiyi told reporters that it is expected that the production and export situation of Fengxi ceramics will not be optimistic until the Spring Fair.

Second, when some enterprises are sighing and sighing in the wind and waves, there are also some ceramic enterprises busy with the waves.

Stone Group is one of the ceramic backbone enterprises in the city, which performed relatively well last year. In 2008, the company achieved a total export value of more than 27 million US dollars, a slight increase over the same period last year. Zhang Shiyi said the secret of the enterprise to resolve the crisis - "diversification." For a long time, Stone has been one of the most diverse products in Chaozhou ceramics, covering three major categories: daily porcelain, craft porcelain and sanitary ware. In the field, the products are sold to Europe, America, Middle East and domestic markets. Zhang Shiyi analyzed: "This diversified business strategy can play the role of 'the west side does not shine east side bright' and enhance the company's ability to resist risks."

"The financial crisis has curbed the demand for high-end ceramic handicrafts in countries such as the United Kingdom and the United States, but the demand for mid-range daily-use porcelain has increased in some places." Mr. Cai, who has been a ceramic for more than a decade, told reporters. In fact, in Raoping County, the rising star of China's daily-use porcelain production, people are seeing another scene. The county's ceramics are mainly made of daily-use porcelain, and the products are mainly sold to the Middle East and other places. In recent years, on the basis of traditional ceramics, the county vigorously promoted the development and production of new products such as glass ceramics, attracting many European and American customers, so the crisis did not cause too much impact on the ceramic enterprises here. The machines operated as usual and the workers went to work as usual. In 2008, the county's ceramic exports reached more than 90 million US dollars, an increase of 19.6%!

"Crisis crisis is organic in danger." Chaozhou ceramics entrepreneurs at the forefront of the storm are deeply impressed by the profound philosophy of the provincial party secretary Wang Yang and are committed to putting it into practice. When the internationally renowned brand ceramics company, Wedgwood, fell in the storm, some ceramic entrepreneurs in Chaozhou went further out of the country with more determined steps and made more frequent contacts with international markets and European and American customers. For those companies that have completed the original accumulation of capital and have certain qualities and strengths, the challenge always coexists with the opportunity.

Some people are busy looking for the market, some are busy buying new equipment and developing new products. This is not the case. Recently, Chaozhou Xiahe Porcelain Co., Ltd. seized the favorable opportunity of the current national value-added tax reform and spent more than 10 million yuan to introduce internationally advanced furnace production equipment. It is reported that the new kiln can not only save energy and reduce consumption, but also help to further improve the regularity and fineness of the products, so that the products are more perfect. Chaozhou Santai Ceramics Co., Ltd. is busy with the research and development of new products by taking advantage of the current “free time”. Zhang Fan, the general manager of the company, said: Using the current adjustment period, practicing internal strength, doing a good job in enterprise talents and technical reserve work, can "take the lead" and win the initiative when the time is ripe.

“Overall, in this crisis, large and medium-sized enterprises have been affected to varying degrees, and small enterprises and single-structure enterprises have been the most affected. Through this crisis, my personal view is still: only insist on diversification Walking on multiple legs, grasping the pulse of the market in a timely manner, improving their comprehensive strength through technological innovation and brand operation, in order to acquire new market space and accumulate development energy.” Cai Zhencheng, president of the Municipal Ceramics Association, said with deep feelings. In fact, with the implementation of the “Science and Technology Trade” and “Brand Driven” development strategies, in January this year, the total export value of Fengxi District was 41.9 million US dollars, an increase of 3.6% over the same period of last year, and it has a self-export brand. The export of high value-added products showed a significant increase.

Luo Wenzhi, secretary of the municipal party committee, pointed out in a more in-depth investigation of the company: "Every crisis is a 'shuffle'; each round of economic contraction is gestating a new round of economic expansion... This is the survival of the inferior market economy. For example, the market law forces us to practice internal strength and strong quality!” Tang Xikun, deputy secretary of the municipal party committee and mayor, clearly pointed out on many occasions: “We are facing many difficulties and pressures at present. However, the industrial division of labor and enterprise brought about by the financial crisis Mergers and acquisitions are conducive to promoting development through openness and facilitating the adjustment of industrial structure."

Third, the crisis has brought changes to the production of Chaozhou ceramics, and it has brought people to think about the future of “China Ceramics”.

Focusing on the annual work guidelines of “Strong Confidence, Seizing Opportunities, Grasping Development, Ensuring Growth, Emphas on People's Livelihood, and Promoting Harmony” put forward by the Sixth Plenary Session of the 12th Session of the Municipal Party Committee, the Fengxi District Committee clearly stated that Fengxi will be created in the new year. "Chinese porcelain is the capital of famous brands." Zhang Shiyi, secretary of the Fengxi District Party Committee, said: "At present, we must not only 'preserve survival', but also have the desire to 'seek development'. Only in this way can we get the first barrel of gold after the global economic recovery." He told reporters. District committees and district management committees are stepping up investigations and actively taking measures to help enterprises accelerate the pace of innovation, upgrade equipment levels, and seek market expansion and extension of the industrial chain. He said: "At present, there are problems with many foreign middlemen's funds. If our company can rely on its existing strength, seize opportunities, and bundle product production and sales services, it can reduce intermediate links and benefit consumers. It is conducive to us taking advantage of the situation and getting rid of the embarrassing situation of only obtaining a low-cost profit from the 'production workshop' in the international division of labor."

As one of the leading figures in the Chaozhou ceramics industry, Lin Daoxuan, the chairman of Guangdong Songfa Ceramics Co., Ltd., considered more development. When talking about the impact of the crisis on Chaozhou ceramics, Lin Daoyi did not want to spend time on expounding the dilemma, but locked the topic on the word "development." He said: "At this special period, China's porcelain capital Chaozhou only dares to break through in terms of concept, and puts its eyes on the longer-term, from the simple response to today and tomorrow to the longer-term future, in common technology and products. Substantial breakthroughs have been made in key areas such as quality and major equipment. Porcelain Chaozhou can have better development.” He said, how should the road go, in fact, many ceramic entrepreneurs have plans in mind, but because of the common technology R & D, the introduction of major equipment, etc., require a lot of investment, and there are risks. Many people are afraid to do this "the first crab-eater", if the government can increase the funds, talents, policies, etc. in this regard. Sexual support is conducive to reducing corporate risk pressure. "The power of the example is endless. As long as one company succeeds, more people will embark on the road of innovation and high value, which will lead to the improvement of the quality of the entire industry!" Lin Daoyi said with confidence. .

The desire for development is so strongly active in the hearts of these ceramic entrepreneurs. As a result of the Spring Festival, the ceramic entrepreneurs in our city are busy organizing groups to visit the ceramic market abroad to find new business opportunities. "At present, we have a group of entrepreneurs to participate in the annual Frankfurt International Commodities Fair, and the number is more than the previous year, reaching more than 60 people." A staff member of the Fengxi District Party and Government Office told reporters. "Despite the impact of the financial crisis, Fengxi ceramic entrepreneurs' desire for development and the original impulse to create wealth are still strong." Zhang Shiyi said with a smile.

Confidence is more important than gold. I think that as long as this desire for development lies in this kind of high sensitivity to the market, this strong spirit of innovation is that China's porcelain will be able to take the opportunity to take the opportunity.

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