China’s Bathroom Export Situation

At present, the sanitary ware export industry is experiencing increasing pressure, due to the appreciation of the RMB, the adjustment of export and foreign trade policy, technical barriers and other reasons. Companies are looking for effective ways to change the downward situation through the following three aspects: technical standards, pricing and costs. This effort is aimed at turning over the export crisis.

Behind the competition on design, marketing services, product quality, sanitary ware also staged a secret price competition. This has forced many large European enterprises to purchase building materials overseas, especially Chinese sanitary ware markets, but these products must be strictly produced in accordance with the relevant technical standards, such as with European large-scale building materials, construction machinery enterprises, and the China purchasing center in Europe. They purchase building materials strictly abiding by the relevant international standards and EU standards, and then through their 400 wholesalers sell the products all over Europe.

To break through technical barriers and ensure the products standard in the market, the manufacturer should establish product monitoring systems. In addition to meeting local technical standards, sanitary ware should meet the local residents living habits and ways of thinking also. At present, facing the increased export pressures, Chinese enterprises attach great importance to bathroom relevant international standards, making a substantial upgrading of product quality, to avoid the export disputes arising from the standard barriers.

At present, as a result of the appreciation of the RMB, the government carried out tight monetary policies and weakened the competitiveness of Chinese manufacturing, but companies’ acquisition costs are lower. Some bathroom companies expect to extend the industrial chain to deal with external changes. As well as continuing to produce faucet components, bathroom accessories, they also begin to use their own funds to develop the tub, porcelain and other products, to enter a whole bathroom product sales market and extend the industrial chain to increase their ability to resist risk.

Currently, the global tap market capacity is about 13-14 billion U.S. dollars; and the total market capacity of porcelain and bathtubs are roughly three times that of the tap’s: it is about 30 billion U.S. dollars. In market share, the market outside Europe and the United States is about 40 percent, the United States’ is about 30 percent, Europe’s is about 30 percent. Major domestic bathroom suppliers are striving to increase sales shares on the European market.

As to India, Russia and other large emerging economies, Chinese sanitary ware exporters are drawing up the appropriate marketing adoption to increase the exports. Industry experts at pointed out that sanitary ware industries are facing great pressure on exports, but these problems can be solved. In fact, the government’s relevant policies are also hoping that enterprises can self-adjust quickly, and then improve themselves, and become more powerful in the face of fierce international competition.

Copyright (c) 2010 Steven Jiang