Foreword:
The terminal market channel is undergoing fission. As an industry media, China Ceramics Network has taken on the role of scout and opened the terminal market last year. The research project took the form of one-on-one interviews with 30 ceramic tile distributors in 10 days and then implemented an event. So far, it has visited 9 cities, and we are still persisting. On September 16, 2019, the research team came to Xiamen, a beautiful coastal city in Fujian, to start the tenth stop of our terminal research journey. Before writing, I would like to thank everyone who clicked on this article. The research team will use this encouragement to present you with a more thorough understanding of the Xiamen ceramic tile market. The text begins below.
[Property market picks up]
The trading volume in the first half of this year was higher than the trading volume in the whole of last year
Xiamen City, Fujian Province, is one of the first special economic zones in my country's reform and opening up. In 2018, Xiamen City achieved a gross regional product (GDP) of 479.141 billion yuan, and its permanent population in 2018 was 4.11 million . Xiamen’s housing has the characteristics of a typical tourist city. The authorWhen talking to many pottery people about this area, they all said: "Rich people in Fujian Province have to own a house in Xiamen. This is a status symbol." It is estimated that the extremely high housing prices in Xiamen are the consensus of the people across the country. Especially on the island, the average house price is more than 60,000 yuan per square meter, and the "ceiling" of the property market of 150,000 yuan per square meter is expected to rise further.
The construction and ceramics industry and the real estate industry are closely related. In 2014, Xiamen announced a hard-decorated housing policy. Since 2016, all the properties developed have been hard-decorated houses. The popularity of hard-decorated houses is extremely high. A dealer revealed to the author that only one of the properties delivered in Xiamen this year was rough. The implementation of the policy on finely decorated houses has undoubtedly had a great impact on merchants operating in the building materials category of ceramic tiles, forcing them to shift their targets to a small number of existing markets. Fortunately, Xiamen's property market is picking up in 2019.
According to data from CRIC, in the first half of this year, the new supply of Xiamen’s commercial housing market was 13,073 units, with a supply area of 1.286 million square meters, and a total of 6,594 units were sold, with a transaction area of 71.45 million square meters, a year-on-year increase of 116.91%, which has exceeded the full-year transaction volume in 2018 (the full-year transaction volume in 2018 was 703,000 square meters), and the market has obviously recovered. The top 10 real estate companies in Xiamen in the first half of the year include Ronshine, Vanke, Shimao, Poly, Shoukai, Longfor, Changlin (Washington), Yuzhou, Guomao, and Tefang.
Some people in the industry said that the reason for the rebound in Xiamen's property market in the first half of this year was, on the one hand, the transaction volume of the second-hand housing market; on the other hand, a number of pure new projects entered the market one after another. There are sufficient housing releases, and many real estate projects are "price-for-volume". In addition, the popularity of land auctions has picked up in the first half of this year, which has also affected the property market transactions to a certain extent.
In terms of transaction area, Jimei, Tong'an and Xiang'an were the main transaction areas. Among them, Jimei District topped the regional transaction rankings with a total transaction area of 217,786 square meters, with Guomao and C&D as the main transactions; Tongan District followed closely with a transaction volume of 201,325 square meters, with Tefang Leon Mansion and Tefang Yinxi Shufu was the main transaction force; Xiang'an District was the main contributorThe transaction volume of 195,332 square meters ranked third, with Sunac Southeast Prefecture being the main transaction force. In addition, from the perspective of transaction area, houses with an area of 80-100 square meters are the most popular among home buyers, with a total of 3,145 units transacted.
[Market Overview]
The island’s market cannot expand in volume, so multi-channel operation is the key
1. Mainstream market & operating costs:
▲Xiamen Jijiajia World Building Materials and Home Plaza< /span>
There are many building materials merchants along the streets in Xiamen, which are not as concentrated as in other cities. The more representative building materials stores are: Jijiajia World, Red Star Macalline, and Xiyingmen. In the afternoon of that day, the research team visited Jijiajia World, the store with the highest concentration of local ceramic tile brands. During conversations with many ceramic tile merchants, they learned that the average rent for Jijiajia World’s peripheral stores is 120 to 150 yuan/square meter/ In March, the rent in the museum is relatively high, with the rent of a store in a good location being nearly 300 yuan/square meter/month. The land in Xiamen Island is tight, and the environmental protection inspections in recent years have been very strict. There are almost no processing plants and storage areas on the island, so ceramic tilesThe dealer's warehouse can only be set up outside the island, and the warehouse rent is 35 to 50 yuan/square meter/month.
2. Brand advantages & channel status:
▲Dongpeng Ceramics’ Southern Fujian Regional General Agent, Xiamen Sanyue Building Materials Marketing Center General Manager Yin Chenggang
Xiamen's Dongpeng Ceramics is the general agent for the entire southern Fujian region. It ranks among the top among all Dongpeng dealers nationwide. In recent years, it has gradually begun to expand in the original Dashang system. We develop franchisees (currently there are 12 stores in Xiamen), and advocate the concept of unified pricing, unified channel management, unified marketing plan, but independent operation. Yin Chenggang, general manager of its marketing center, told the author that this is an operating model that transforms from heavy assets to light assets in the current market environment, where dealers want to maintain market share and achieve growth.
▲ Romantic tiles Xiamen dealer, Xiamen Minzhongtian Building Materials Corporation Manager Zhuo Jianli
When I first went to the Romantic Ceramics Jijiajia World Store, the decoration style I saw was completely in line with the current fashion trends. You can’t even imagine how long ago this showroom was. It was faked years ago (when everyone was still pursuing European luxury style). I have to admit that the taste of this brand is very consistent with international taste. Zhuo Jianli, general manager of Romantic Ceramics Xiamen, told the author that he also has another level of identity - a special lecturer at Romantic Business School, who often travels across the country to teach courses on design and marketing to Romantic's family members. Romantic has stores in three mainstream markets in Xiamen. Zhuo Jianli has long understood the thinking of design-driven sales, so when building a team, everyone is required to be able to draw design drawings.
▲Owen Lai | Plain modern brick Xiamen dealer Cao Hao
Owen Lai is a very special ceramic tile brand that specializes in plain color tiles. All products may only come in two colors: gray and white, but they are very popular among young consumers and designers. Teacher's pursuit. Cao Hao, a Xiamen dealer of Ouwen Lai | Plain Modern Bricks, told the author that they mainly target the middle and high-end customer groups. They only make two colors but can have a lot of styles, which further highlights their professionalism in the field of plain bricks. . If you delve deeper into your own market, you won't have to worry about sales. This is exactly the advantage of "small but beautiful" that everyone has been discussing.
3. Development constraints & potential opportunities:
It is a common tactic of most bricks-and-mortar sellers to offer one or two popular products for group buying at a special price. However, as consumption gradually upgrades and the market weakens, this kind of bargaining has little effect in promoting sales. Yin Chenggang, the general agent of Dongpeng Ceramics in southern Fujian, told the author that they are currently working with the headquarters to explore new retail models. Today’s young consumers understand the brand through the Internet, so they use Tmall, Qijia.com, Douyin, Xiaohongshu, etc. Multiple ports are used to divert traffic as a supplement to the main source of door-to-door customers. Compared with traditional sales channels such as promotions, phone calls, and house cleaning, this new retail model still has certain development potential.
In addition to using the Internet, another popular and mature sales model in Xiamen is cross-industry alliances. Zhuo Jianli, a Xiamen distributor of Romantic tiles, said that an alliance must maintain healthy development and cannot bring orders just for the sake of bringing orders. Instead, it must truly consider the user's perspective and recommend suitable and reliable brands to consumers. Cao Hao, a Xiamen dealer of Owen Lai | Plain Modern Bricks, also mentioned the problem of matching between different industry alliances. Only when the various categories are "well-matched" can this alliance effectively add value to sales in the long term.
[Three pieces of cake]
Looking at the development opportunities of Xiamen building materials from the policies issued by the National Development and Reform Commission
In the middle of this year, the Xiamen Development and Reform Commission issued the "Notice of the Xiamen Leading Group Office for Promoting New Urbanization on Issuing the Key Points of Xiamen's New Urbanization Work in 2019." It mentions a number of policies on Xiamen's urbanization construction. The most important ones linked to the sales of ceramic tiles are the following three parts. The author has drawn the key points for everyone, so quickly pick up a notebook and write them down!
1. New urban public projects:
In accordance with relevant provincial policies, land will be allocated to three provincial-level characteristic towns including the comprehensive reform pilot town, Jimei Automobile Town, Jimei Animation Town, and Xiang'an Dadeng Taiwan Trade Town. The indicators are tilted to ensure the advancement of new urbanization construction projects; in order to expand the supply of education outside the island, Xiamen will accelerate the construction of Double Ten Middle School Xiang'an Campus, Foreign Languages School Jimei Campus, Tong'an No. 1 Middle School Binhai Campus High School, and Experimental Primary School Xiang'an Campus. At the same time, The construction of 18 new public kindergartens has been started; in order to promote the reform of the public library and cultural center branch system and speed up the construction of comprehensive public cultural service centers at the grassroots level, 5 town (street) comprehensive cultural stations and 97 villages (residences) will be completed this year. The cultural service center has been upgraded to meet standards.
2. 21,000 new affordable housing units started:
In order to establish and improve a housing system that promotes both renting and purchasing and a healthy andIn order to maintain the orderly housing rental market, Xiamen will start construction of 21,000 new affordable housing units this year, promote the completion of the first phase of subway community projects as scheduled, and increase the coverage of affordable housing for the urban permanent population. Focus on promoting the generation of public rental housing projects in conjunction with the development trends of industrial parks such as Software Park Phase II and Phase III, Wuyuanwan Medical Park, and Tongxiang High-tech Industrial Base. At the same time, the distribution of affordable housing (including affordable rental housing, affordable commercial housing, and public rental housing) will be accelerated, and the city’s sandwich layer and new citizens will be included in the scope of housing security.
3. "Village in the city", renovation of old communities:
This year, Xiamen will accelerate organic urban renewal and coordinate the renovation of "urban villages" and old communities inside and outside the island. Among them, Siming District is focusing on the whole village renovation work of Hecuo and Lingdou, and continues to renovate and upgrade 70 old communities; Huli District is taking the lead in the renovation of the first phase of old villages in the Gaolin-Jinlin area of the pilot area, accelerating the renovation of Zhongzhai, The entire villages of Macuo, Lianshantou, Hongshuitou, Shanghu, Zhonglun, and Lunhou were demolished and renovated, and six pilot communities including Huli, Gutanglong-Xiaodongshan, and Xiaolinhou were renovated and upgraded; Jimei District continued to promote urban villages Renovation, promote the renovation of four old communities including Rongping Community Phase II and Damian Street; Haicang District continues to promote the renovation of four old communities, including Xinhai Garden, Xinwangfu, Shuiyunwan, and Jinmao Garden; Tong'an District Renovate and upgrade 7 old communities, including Sanxiu Beili and Houluli; Xiang'an District continues to promote the improvement of rural architectural style, focusing on promoting the renovation of buildings along the railway line, Xiang'an Avenue and Xiang'an South Road.
