Development trends and opportunities in the sanitary ware industry

It is reported that the oligopolistic market means that consumers need to pay extra high prices, but for enterprises, they can get more profits, which is directly reflected in the high concentration of the industry and enters a more standardized development period. In contrast, the extreme dispersion of the industry means that there are many problems to be solved in the development of the enterprise. There is also a more tragic situation where the oligarchic candidate is occupied by foreign brands, and the current Chinese sanitary ware industry is at this stage.

In the previous business case analysis, Yiou Home has mentioned that the first echelon of the domestic sanitary ware industry is occupied by foreign brands such as Kohler and Dongtao. Domestic famous brands can only compete in the second echelon, and the third echelon still has a lot of unknowns. Small and medium-sized enterprises with serious homogenization of products. Foreign brands are strong, and the characteristics of local companies are small and scattered. Moreover, in the process of sorting out the public information of the five listed companies in the industry, the extremely diversified discovery business of Yiou is also the characteristic of the current domestic sanitary ware enterprises, and at the same time indicates the trend of future industrial integration. In this regard, Yiou Home has several observations and thoughts to share with you.

Extremely dispersed business, five listed companies vary widely

Simply comparing the scale of revenue, the gap between the five companies is large, Huida sanitary ware revenue exceeds 2 billion, and Dima bathroom is less than 20 million. However, the figures can only be compared in terms of abstraction. If you know the business status of the five companies, you will find that: listed companies with wardrobes have added more customized services, and kitchen appliances have shifted their focus to range hoods, because the sanitary ware industry is still in In the initial stage of competition, the five main sanitary ware enterprises have almost no overlap in their main business, and their focus and future business layout are different.

The bathroom is mainly engaged in sanitary ceramics, hardware and sanitary ware, bathroom cabinets, bathtubs and ceramic tiles. The export business accounts for 30%, and is sold in developed countries and regions using ODM and OEM.

Seagull Sanitary Ware main bathroom hardware, is currently laying out custom-made bathroom space, smart home and bathroom products online agency business, accounting for 80% of overseas revenue.

Emperor Sanitary Ware is mainly engaged in acrylic sanitary ware, including acrylic toilet, bathtub, bathroom cabinet and shower room. At the same time, it produces its own acrylic sheet. After the acquisition of Ou Shennuo, it expands its business to architectural ceramics. The income comes from the domestic market.

Hengyuan Sanitary Ware specializes in toilet lids and other sanitary ware accessories. It mainly transports to Germany, the United Kingdom, the United States and Italy. Its overseas income accounts for over 95%. The international business is operated by its own brand Siona, while the domestic market is ODM.

The main business of Dima Sanitary Ware is the shower room, which focuses on the domestic market. It sells real estate developers such as real estate developers, hotels and Ou Pai bathroom by OEM, and sells its own brand products by dealers and e-commerce.

Among the five enterprises, Huida Sanitary Ware and Emperor Sanitary Ware have different main materials; Seagull Sanitary Ware has a new business revenue of less than 10%, still mainly based on bathroom hardware production; Hengyuan Sanitary Ware focuses on toilet lid production and export; Dima Sanitary Ware Specialized in shower room. The business of the five companies has almost no overlap, but the companies that produce sanitary ware products such as Seagull Sanitary Ware and Hengyuan Sanitary Ware are actually in the supply chain, and the products are highly replaceable. The shower room business of Dima Sanitary Ware has been included in the enterprise with more product layouts, which is why it supplies OEMs such as Europait.

The industry is extremely fragmented in the small scale of the enterprise, and the main business of the company is extremely fragmented. Such an industry pattern is not conducive to the competition between local enterprises and foreign-funded enterprises, and it is difficult to occupy a favorable position in the high-end market. Of course, extremely fragmented markets also give companies more opportunities.

Development trends and opportunities in the sanitary ware industry

First, industrial integration. The industrial integration here is the integration process of products, channels and brands. From the product side, it is the integration