Plumbing from China
An increase in the welfare of the people of China gradually leads to the fact that the consumption model in China is becoming more and more close to the European one. The standards of quality of life are rising, and the structure of needs is changing. What was previously considered to be a luxury item 10 years ago is now available to an increasing part of the Chinese population. This is especially true of household items. The ongoing process of urbanization and, to some extent, foreign culture affects this. The importance of the domestic market for goods from China is becoming stronger.
As an example of these trends, we can consider some features of the sanitary ware market in China.
General characteristics of the Chinese sanitary ware market
China is the largest producer of sanitary ware in the world (about 40%), but this industry is still quite young. Mass production of sanitary ware in China began no more than 30 years ago, and Chinese manufacturers cannot yet boast the same traditions that manufacturers in Germany, Italy, and Finland have developed. This applies to some extent to quality, but more to the appearance and design of plumbing from China.
Chinese plumbing manufacturers spend on design and research incomparably less than their European competitors. Often, Chinese factories simply copy ready-made models. Therefore, several factories in the lowest price segment can offer identical product lines.
The issue of natural and energy resources for the industry is quite acute, because the production of sanitary ware is quite resource-intensive and energy-intensive. Concerned about the fairly strong environmental pollution of waste and by-products of production.
In the world, Chinese plumbing has gained popularity due to very affordable prices and high (for the price) quality, and constantly growing export volumes serve as confirmation of this. Currently, plumbing exports from China are in more than 180 countries of the world. The largest consumers of Chinese sanitary ware are the USA, EU countries and Japan. They account for about half of the supplies. However, the markets of the Middle East, North Africa, Latin America and the CIS are being developed more and more actively.
Major Plumbing Production Centers in China Guangdong Province Henan Province Hebei Province. In particular, in the city of Tanshan in this province, the main production facilities of the largest Chinese manufacturer of sanitary ware Huida Ceramic Group are located.
These three provinces combine to produce over 75% of sanitary ware from China. It is also worth noting the province of Funjian and Shanghai.
Plumbing market structure in China
Luxury plumbing. Until recently, almost exclusively European brands represented such plumbing. Basically, this plumbing in China from Europe, however, recently several Chinese players working in this segment have appeared on the market, but their share is still insignificant.
There is a gradual decrease in the import of sanitary ware from European countries. Consumers of plumbing in this category is not more than 8% of the population of China.
The average price segment. Manufacturers of China and other countries of Southeast Asia, particularly Taiwan, are widely represented here. Basically, the greatest demand for plumbing in this category is experienced by the commercial sector – offices, hotels, restaurants, and also such plumbing is used in residential premises of increased comfort. The share of such plumbing is approximately 20-30%.
Lower price segment
Chinese manufacturers are mainly represented here, but there are also manufacturers from Taiwan and Indonesia. It is currently the most actively growing due to the high rate of construction of mass housing.
Plumbing market trends from China to increase the quality of products and their competitiveness in the middle and upper price segments, measures are being taken such as increasing design costs (attracting foreign specialists) and tightening quality control. In conditions of increasing competition and rising costs, the integration processes of large Chinese manufacturers and absorption of small ones are accelerating. To reduce costs, production capacities are gradually shifting from the southeast to northwest. From developed coastal provinces to less developed domestic ones, where labor costs less. Gradual reorientation of exports to emerging markets. In the domestic market, there is a desire to make plumbing more accessible to residents of villages and small towns.