How long can the hottest ceramic enterprise OEM mo

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How long can ceramic enterprises transfer to India for transnational OEM?

entering 2018, Chinese ceramic enterprises are facing the most severe survival test in history due to the influence of market, environmental protection, export and other factors. Some OEM companies and ceramic enterprises clearly feel that domestic production and operation costs are rising, and there is no advantage in domestic OEM. Therefore, they have set their eyes on overseas and began to seek new OEM places

in this context, India has become a new competition for OEM and ceramic enterprises in many countries, including China, due to its low production cost, convenient export and other advantages. What advantages does India have? Why can we attract overseas OEM companies to go there? Will China's OEM share in India show an increasing trend in the future

mainly pasted with large boards and antique bricks

Wang Dong (a pseudonym) and his wife previously operated an enterprise in Tangshan, mainly selling sanitary wares and tiles. Its products are mainly in Fujian and Shandong to find suitable manufacturers to label, and the sales volume has been stable for several consecutive years. However, the good times did not last long. With a violent environmental storm spreading in various ceramic production areas, coupled with rising operating costs, Shandong and other production areas are facing severe survival challenges

due to the influence of many factors of the audience, the operation of Wangdong enterprise has also fallen into a dilemma of stagnation, and its sales have also declined year by year. He clearly felt that there was no advantage in domestic OEM, and had no choice but to focus on India, a South Asian country with lower production and marketing costs

it is undeniable that the Indian ceramic industry has developed rapidly in the past two years. Ceramic manufacturers from India and Indonesia began to appear at the China ceramic tile exhibition with the intention of entering the Chinese market. At the same time, with the advantages of raw materials, labor and other costs, India has attracted a large number of OEM merchants, trading companies and ceramic enterprises from the Middle East and China to go to the local market for OEM in a short time

Wang Dong is a member of this "new" brand army. According to reports, Chinese enterprises going to India for OEM are mainly interested in ceramic panels and 600 × 600mm、800 × 800mm antique bricks. Take ceramic plate as an example. In just two years since 2016, the number of large plate production lines in India has reached 17, with a rapid development momentum, and the number of production lines has reached the front of China

at the same time, the cost of domestic investment in a large board production line is too high. Some ceramic enterprises want to try to sell but dare not build the line rashly. Qiu Ziliang, general manager of Foshan Zitao Ceramic Technology Co., Ltd., said that India's large board products have very advantageous prices, and their designs and colors are in line with Europe, so they are deeply favored by OEM companies

low cost and convenient export are India's "hard advantages"

Qiu Ziliang recalled that at this stage in, Indian ceramic enterprises took the initiative to enter the Chinese market, looking for suitable products and then transported them home for sale. Since around 2010, Chinese equipment, raw and auxiliary materials have entered India, and China has set up more and more branches in India. In the past two years, after integrating equipment and technology from Italy and China, India began to embark on the fast track of development and made rapid progress. In a short time, it has formed a certain capacity scale

what advantages does India have? Why can it attract many Chinese OEM companies and ceramic enterprises to OEM? In this regard, a number of respondents pointed out that India's advantage of aluminum aging furnace test mainly has two aspects: one is the cost advantage; Second, export advantage

with 1200 × Taking the 2400mm ceramic plate as an example, the price in India is only $25, and 6 experiments can complete automatic control 00 × The price of products with 1200mm specification is lower, only US dollars, which highlights the price advantage. "Even threeorfour years ago, India 600 × The price of 1200mm products has been as low as $6 per piece. " One respondent said that in this way, India's cost and high turnover advantages are obvious

on the one hand, the cost of raw materials is low. It is reported that India itself is rich in potassium feldspar raw materials. At the same time, even for raw materials that need to be imported, the distance and location advantages of neighboring countries such as Turkey and Australia are also very obvious. In addition, its labor cost is also lower than that in China

in addition to the hard advantage of low cost. Another factor that attracts a large number of Chinese OEM and ceramic enterprises to India is the continuous decline of domestic ceramic tile exports for several consecutive years. China has been the country that has suffered the most anti-dumping investigations for many consecutive years, and is currently facing a more severe situation of trade friction

Qiu Ziliang said that the main reason for the transfer of Chinese OEM is anti-dumping. Under the influence of many factors, OEM manufacturers have no advantage in production in China, so they began to transfer to Vietnam, Indonesia, India and other countries to directly export OEM products to countries around the world. "India's own production capacity is difficult to digest by itself, and it also has to be sold all over the world. To some extent, India's global sales channel has already been opened, the whole internationalization process is more advanced than China, and English is the local official language."

at the same time, Li Wanhua, director of the International Department of jinzunyu marble tiles, also said that over the years, India's financial system has been in line with the world, and its cooperation can be directly sold on credit, which is relatively flexible. In addition, due to long-term cultural differences, India's enterprises have a faster internationalization process and a more accurate force on overseas markets

ZHENG Hongyuan, general manager of KT ceramic tile international trade department, also expressed a similar view. In recent years, China's ceramic tile export has encountered unprecedented challenges, and many factors have led many OEM merchants and ceramic enterprises to be willing to go to India for OEM. In addition, they intend to continue their efforts. In addition, Indian ceramic enterprises have a stronger awareness of group development than China, and they have certain advantages in the development of international markets

"at present, India can be said to be gradually becoming a strong competitor of China. Its biggest impact on China is exports. In the Chinese market, Indian products have little advantages. However, its development potential in the international market can not be underestimated."

will the mode of OEM in India not last long

but in general, it is actually a helpless move for Chinese OEM and ceramic enterprises to go to India to OEM. Some respondents said that the domestic comprehensive production and operation costs are getting higher and higher, and the export decline is serious. Taking the U.S. market as an example, although the export volume of some enterprises is large, the average unit price is too low, and it is easy to be replaced by India to negotiate a business

will more and more enterprises go to India for OEM next year and in the future. Many respondents said that there would be no large increase in the short term. Qiu Ziliang said that this year is the rising period for domestic enterprises and OEM companies to go to India for OEM. There should be a small increase next year, but the amount should be small. By 2020, it should reach the peak. "Because China's own production capacity is already large, and at the same time, we should also consider the issue of delivery time. In cooperation with Chinese ceramic enterprises, the delivery time can't be too long. The delivery time of OEM in India takes months, which is a little difficult for domestic first-line brands to adapt."

at the same time, for some brands that choose to directly export to countries around the world after OEM in India, this practice also has certain risks and will not last long. Because Indians themselves have a strong global vision and business acumen, this channel will be replaced by Indian ceramic enterprises over time

some insiders also believe that at present, China and Indian ceramics have a highly overlapping and competitive relationship. Although this phenomenon is particularly obvious this year, China's comprehensive OEM volume in India is not large, and its only differentiation advantage is the large board, but the volume of this part of products is very limited

Zheng Hongyuan said that the competitive relationship between India and China is greater than the cooperative relationship, and this temporary OEM will not last long. Therefore, what Chinese enterprises should do is to improve their competitive strength, rather than choose to go to India for OEM simply for cost advantage. "At this stage, there are only two ways for Chinese ceramic enterprises and OEM companies. One is to go to India for OEM. It may be easy in front, but there may be no way to go behind; the other is to improve the competitiveness of their own brands and take the initiative to meet the competition from India and other countries. Although the road ahead is bumpy, it will be a long-term road conducive to brand development."

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