At present, the problems of soaring raw materials and energy, power rationing, production reduction and shutdown, business disruption and so on can be said to be worrying business owners a lot. The original business principle of following the market and rising water and boats is powerless in this round of soaring costs.

Although we see the price increase notices everywhere every day, but not many enterprises can really increase their prices. Even if the price rises, it does not completely offset the part of the cost of "soaring". Low profit, no profit, or even loss operation has become a common phenomenon.
There are many reasons for this embarrassing situation, but the most fundamental reason is the imbalance between supply and demand, which foreshadows the vicious competition of low prices.

First, for a long time, building ceramics has always revolved around the output, and the production capacity release is faster than the market demand; In recent years, the market has shrunk, and many ceramic enterprises have changed from small line to large line, reducing costs by increasing unit output and expanding market share at a low price.

Second, product innovation, most enterprises rely on upstream glaze suppliers, resulting in the convergence of technology and process and the homogenization of most products. There are too few truly differentiated and personalized products.
Third, the industry concentration is low, scattered and disorderly, which is difficult to standardize, and the operating conditions are also different. Some low-quality products or poorly operated enterprises compete for prices from time to time to disrupt the market for their own survival.
Curbing the low price fight behind the difficulty of price rise is the fundamental to deal with the current situation
Perhaps, curbing the low price competition behind the difficulty of price rise is the fundamental way to deal with the current situation. Because the current energy tight supply is only a temporary phenomenon in the process of conversion between old and new energy. The long-term vicious price cutting competition is a major curse that erodes enterprise profits, affects the health of the industry and moves towards high-quality development.
In order to create a good business scope of the industry, Jinjiang building materials and Ceramics Industry Association issued "The proposal on adjusting product sales price" a few days ago, pointing out that in addition to the superposition factors at the macro level, the root cause of today's industry dilemma is the continuous price bargaining and order grabbing of products among enterprises, resulting in a sharp decline in the price of each new product shortly after its launch, It brings severe challenges to the survival and development of the industry. Call for joint resistance to the phenomenon of malicious price bargaining and order grabbing, and adjust the product price accordingly according to their own conditions to maintain the normal operation of enterprises, so as to ensure the healthy and high-quality development track of the industry. The proposal can be said to point to the crux of the problem.
Alleviate excessive fighting and reduce prices is more urgent and important than "price rise"

Theoretically, Guangdong has brand influence to say no to low price competition, and Fujian also has the advantage of "sketch" to protect against low price competition. But reality backfired.

Originally, the continuous development of new products and sketches to improve added value not only effectively resolved the high cost of natural gas at that time, but also made good profits. But the follow-up continued to cut prices and make a mess of the prices of new products. As a result, Fujian ceramic enterprises lost good opportunities to make money one by one.

Compared with other production areas, it should be said that a number of enterprises in Quanzhou, such as Taoyixuan and Caiba in the antique tiles, Haohua in the wood grain tiles, Juntao in the middle board, Baoda and Qicai in the floor tiles, have made a good start in the price positioning , As long as they compete rationally, both innovators and followers should earn a lot.

It can be seen that what erodes the profits of enterprises and brings severe challenges to the healthy development of the industry is not the cost, but the irrational price reduction and fighting, which leads to the current dilemma.

Therefore, for some production areas or enterprises, it is more urgent and important to alleviate the problem of excessive price reduction than "price rise".
Efficiency and quality are the core of the next high-quality development of the industry. The implementation of double control and double carbon is a major measure to promote the high-quality development of the industry. In this context, if vicious competition can not be effectively curbed, where can high-quality development come from?
Although local production costs are gradually approaching, creating certain conditions for alleviating low-cost competition, it is still difficult for everyone to exercise self-discipline in the market.
In addition to the efforts of industry associations and other management departments, The force of compulsion may be indispensable

From the development of other industries, to completely solve the chronic problem of price reduction, in addition to the management efforts of industry associations and other departments , the force of compulsion is also essential.

For example, China's steel production capacity accounts for about 57% of the world. The upstream has long relied on foreign iron ore supply, but can not grasp the pricing power of iron ore. Since last year, international iron ore prices have soared, and Chinese steel enterprises can only accept it passively.

However, in May and August this year, China adjusted import and export tariffs on iron and steel products twice, cancelled export tax rebates for most iron and steel products, and increased export tariffs on ferrochromium and high-purity pig iron.

With the adjustment of China's steel import and export policy, the international iron ore price fell sharply, the iron ore price fell by about 50% from the high level, and the international steel price also rose.

The reason why the iron and steel industry can do this is precisely because the government has carried out comprehensive integration of the iron and steel industry and the corresponding withdrawal of backward production capacity, which has greatly improved the industrial concentration. It solves the problem of scattered and disorderly management.
In that way, will the government follow the example of the above steel industry in renovating the ceramic industry?

Looking back 10 years ago, in response to the national implementation of environmental protection and pollution control, Quanzhou government took the lead in implementing clean energy substitution in the ceramic industry, which can be said to have played a key role in the stable development of Quanzhou ceramic industry.
Under the current background of double control and double carbon, Quanzhou proposes to implement high-quality development projects in the manufacturing industry in the next five years. We may as well wait and see whether it will take the lead in implementing the integration + elimination measures again, improve the concentration of the ceramic industry, and effectively curb the chaos of price reduction, so as to win the first opportunity to become stronger again in the new journey of high-quality development.