Market analysis of Indian and Thai sanitary brands
Recently, the capacity expansion of Indian sanitary ware manufacturers has been progressing slowly. The Indian Economic Monitoring Center even predicts that the rate of capacity expansion will decline sharply. Under this circumstance, large sanitary ware manufacturers in India are adopting an asset-light model to reduce capital expenditures, enrich product lines, and increase market share.
With the strengthening of consumer brand awareness and the rising cost of production, small-scale and poorly managed bathroom brand manufacturers are unable to improve their performance and embark on the road of merging with large manufacturers. For small manufacturers, the merger improved the original chaotic management situation. For large manufacturers, small gains were achieved, production capacity was replenished, product supply was stable, and by virtue of its own strong marketing network and brand appeal, it seized the market.
Not long ago, the Indian Somany bathroom brand company acquired the shares of two Morbi bathroom brand manufacturers, Vicon and Amora, holding 26% and 51% of the shares, respectively. Among them, Vicon bathroom brand manufacturers have an annual output of 3.9 million square meters of ceramic tiles, while Amora bathroom brand manufacturers have an annual output of 2.4 million square meters of ceramic tiles. Somany will invest Rs 150 million to get 6.3 million square meters of production capacity. According to the equity ratio, this means that the average investment per square meter of tiles is Rs 67. If Somany develops a plot of land in Kadi to build a production line, it will produce one square Mi Tile needs to invest 202 rupees, the cost is three times the acquisition of equity.
In India, large sanitary ware manufacturers such as Kajaria, Somany, H & R, etc., have expanded their production capacity through the acquisition of joint ventures. The Indian Economic Monitoring Center predicts that this model will become more and more prosperous.
According to reports, Thai sanitaryware company Star Sanitaryware is expected to reach 200 million baht this year, a growth rate of 40%. Next year, the company is committed to increasing its revenue to 250 million, another 25% increase.
Last year, Star Sanitaryware suffered a loss of 143 million baht due to high costs and low selling prices, its worst financial performance ever. The president of the company, Somchai Wongaroon, said: "With the expansion of the Thai domestic market, our revenue has also increased. At the same time, the company's aggressive market expansion actions and the government's new sanitary ware standards have also played a significant role in promoting the company's business . "
Thailand imported bathroom brand sanitary ware worth 1 billion baht from China last year, but 95% did not meet Thai industry standards. In the first half of this year, Thai domestic demand experienced a dramatic increase. Thai local sales accounted for 54% of the company's revenue, compared with only 30% in the past decade. Star Sanitaryware will launch new products next month. At that time, the company will increase its efforts to expand the mainland market.
At the same time, the company will focus on expanding the market of non-concierge, Vietnam and ASEAN countries such as Cambodia and Myanmar. In these countries, the demand for high-end sanitary ware brands is growing rapidly. The president of the company, Somchai Wongaroon, said: In these countries, the focus of market promotion will be Myanmar and Cambodia, because these two countries still do not have their own sanitary ware manufacturers. In addition, the Indonesian market is also very important.
It is understood that since 2010, China and ASEAN Brunei, the Philippines, Indonesia, Thailand and other countries have implemented zero tariffs on 90% of trade products, and China's average tariff on ASEAN has also been reduced to 0.1%. Chinese sanitary ware products can enjoy tariff preferences when entering the ASEAN market. Every year a large number of Chinese sanitary ware brand sanitary ware products are exported to Thailand. However, as mentioned in the article, Thailand implements the new sanitary ware brand standard, and quite a few Chinese products do not meet this standard. Therefore, Chinese exporters should learn more about the details and make certain adjustments to their products in order to gain a firm foothold in the Thai market.
In addition, Myanmar and Cambodia do not currently have their own sanitary ware manufacturers. Chinese exporters, like Thai companies, should lock these two countries in order to get a cup of coffee there.