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Credit crisis spreading in the whole industrial chain collapse of ceramic pottery rich business enterprises

Ceramic Mug    From:Xinxiang Ceramic Mug Manufacturers    
Year sad color ceramic mug. Running in the terminal market of private polishing factory clerk and clerk-producing areas in the chemical industry, it is difficult for the back section of the year 2011 than in previous years people to feel scared.

In 2010, the market nosedive from the hot to the cold, led to many dramatic changes in ceramic enterprises spent a year as a roller coaster ride, but also to many enterprises, especially private cast ceramic factory also felt the cold this winter than cool.

The direct impact of market volatility on the private polishing plant is still only a superficial wound but not the blood, as a result of poor sales on private polishing plant dealers, and even ceramic business credit is more than its total sales Many private polishing factory near fatal collapse.

Ceramic enterprises had a hard time, be affected in the upper reaches of supporting enterprises is on pins and needles. Many chemical companies are outstanding accounts receivable and even out of the shop more than half of the goods, business worrying. ceramic marble coffe mug

The phenomenon of widespread credit industry in 2010's toward more frenzied with each of its related companies, and even Australia and Xiang Lu, general manager of marketing of ceramic Memorial said in casual conversation, "the private credit kidnapped cast factory." The situation at this time, not only private throwing plant, with brands, the upstream chemical industry by supporting the credit of the enterprises of a kidnapping, tightly nailed this back and forth is difficult to keep the cycle of being cut off.

Beginning of this century, with the expansion of the consumer market and many companies launched ceramic, ceramic products, sales channels starting from the ceramic products to the product distributor of agency changes in the system.

The transformation process in the channel, the emerging part of the ceramic enterprises in order to quickly gain a firm foothold above the ceramic sales market, some dealers began to introduce a selective, ceramic products, credit sales system. Unexpected is that this almost led to sales of all ceramic companies follow the trend of business process behavior. Ceramic credit sales system into the ceramic industry was plant, to both the default, tacit sales system.

Under this system, the ceramic-sale market, the manufacturers of ceramic products by the distribution of the support (mainly credit degrees), the next by aggressive sales model (the credit amount of ceramic manufacturers to the dealers in the retail and engineering process of cooperation the great flexibility of product sales), emerged a large number of powerful ceramic terminal vendors, ceramic terminal distributor the right to speak has been unprecedented attention.

The credit system of ceramic manufacturers distributors in bringing the terminal, but also themselves dragged into the credit system and ceramic dealers debt arising from the shadows. Because a lot of pre-ceramic product dealers business credit debt disputes, so that once the sweet vendor relationships grow cold, and even onto the seat of arbitration law.

Collapse rich business enterprises

The late 90s of last century of the new century, China's ceramic industry is rapid, high-speed development stage. At this stage, Foshan Ceramics Industry & Trade Group Corporation, Tangshan Ceramic Group, Weifang Merrill Lynch ceramics company, ceramics factory in Sichuan as the representative of a group of state building and sanitary ceramics enterprises; to Eagle Ceramics Group, Dongpeng Ceramics Group, benefits of Ceramics Group, a group represented by the collective building and sanitary ceramics enterprises; to the new source (Group) Co., Ltd., Hongye Ceramics Co., Ltd., ceramic machine subjects represented a group of private building and sanitary ceramics and machinery supporting manufacturing companies; to American Standard, Beijing TOTO, credit represented by ceramics funded enterprises, enterprises of various economic sectors have made rapid ceramic development. disney mug ceramic coffee cup

"At that time, ceramic products, a larger overall profit margins, market or do, no worries about sales. But businesses in general strength of the weak, so, in order to speed up the delivery frequency and product sales, companies adopted a Distribution Policy." tiles, Foshan General Sales Manager of the European Grand Xia Guangming about 90 the last century, the ceramic industry of the Distribution phenomenon, rather sigh.

Industry veteran also told reporters, before and after in 1994, in the collection system and the rise of state-owned enterprises Distribution phenomenon, Roland, Buddha Tao Group, represented by three mountains ceramics, but the credit amount is also within the scope of businesses can afford.

"Distribution Company adopted the policy, does support a number of outstanding dealers, but because of many loopholes in corporate management, but also brings many problems for enterprises. Distribution beyond recovery due to a dispute shall occur from time to time . "Xia Guangming above, said 90 of the ceramic enterprises, mostly state-owned or collectively owned enterprises, distribution or borrowing are popular," IOUs "easily hundreds of thousands or even hundreds of million of goods sent to the dealer so hands, while 50% of the dealers are not making money after the payment.

"At that time the state-owned system, dealers are also thinking about arrangements national oil companies and not someone go after the final paragraph, it is so dragged down by more than one or two enterprises." Insiders said that, for conversion of a number of state-owned ceramics enterprises, there shall not justify the closure due to the brand, but also expanded the number of dealers, for business development, "the accumulation of" the pot of gold.

In some state-owned enterprises, driven just started, need to open up the market of private companies making the same mistakes are inevitable. "With the surge in production, pottery and by the shortage of market for the surplus of the economy's rapid economic downturn, price war after another. Enterprises to compete for market share, it adopted a Distribution." Xia Guangming said.

"Some large enterprises will be supplied to dealers to more Distribution in the form of multiple goods, but are stable only on the basis of vendor relationships." Foshan, Changsha, Hunan, the distributor of a brand of Mr. Liu said that he engaged in ceramic industry more than 10 years, has enjoyed Distribution credit treatment. This treatment is indeed working to some extent the business capital.

"In the past some companies paid to collection, sent to the internal market to recover next, but some of the personnel assigned to the market not only failed to recover the arrears, but by businesses 'instigation', and the business 'spoils' go free after Shadow without a trace, along with corporate catch wages, travel costs, really lost his wife after bad. "Liu said.

With industry analysts, is essentially a business a few years ago needed funds for development, there is a demand for the Distribution, is a model for manufacturers, today is the survival and growth of the business means. As competition intensifies, profits leave the building ceramics industry era, the enterprise quality and significantly increased brand awareness, and begin to face low-cost operation with the different strategic choice, therefore, the market share of a competitive hot spot, and Distribution is a market share quickly effective means.

Damage caused by credit

In fact, the credit market as the very means for the ceramic industry, almost all companies within the industry used. According to industry sources saying, distribution credit "achievements" of the many enterprises, but also "bury" a lot of brands, many ceramic companies even paid a heavy price.

"Last year (2010) in September, when a small circle in the north building materials to customers in Foshan, famous, find a relatively famous private polishing factory, in good faith expressed its intention to cooperate and hope that the enterprise agency brand. He also said that because of their limited funds, want companies to give support. After some negotiations, the private plant to throw him in the form of Distribution of 30 million made goods, he was committed to the enterprise: month payment. "

"However, it is not thought of that, a month later, the dealer sold the goods do not give money, sent to the collection business, the dealer went so far as the contract is signed by his wife and business, and he now has been with his wife divorced, he does not assume such contract as an excuse to refuse to repay. to a conclusion now still have not heard that the furniture factory ready to throw the customer court. "Xia Guangming told our reporter in the industry, especially the private cast plant, similar cases are not uncommon.

There are many furniture polishing factory owner complained to reporters: "Every end of the year, the most embarrassing and most tangled situation is rich, but in the pockets of others. The entire company from top to bottom are rushing around the market in payment reminders to customers . "

Throw a furniture factory owner told reporters that now is not just throwing private plants, other companies are faced with a dilemma: often the dealers to the manufacturers to a number of the cargo, and manufacturers will go the hard way debt collection, several million of the purchase price, sent to find multiple manufacturers, the results pay best smile, and said to do good things, frayed utter words, is still difficult to be paid back.

Some manufacturers are even more due to the more distributors. The boss told reporters calculations: the purchase price less the dealers owed owed tens of million yuan every year, much less the hundreds of million, higher even up to several million dollars. "The money owed to a single enterprise is by no means the number of decimal places. The most serious business or even less than the credit total sales reached the total situation."

In response, companies say, and some dealers are indeed temporary cash flow problems, it is understandable, but some "is just being deliberately Repudiation." The purchase price is difficult to give a lot of companies have brought great harm. Insiders says that corporate liquidity itself is not much of a defaulted loan is likely to cause difficulties in business operations. In some areas coupled with the consolidation of the ceramic industry, the lack of policy support, bank loans to more difficult, some money was owed to the ceramic enterprises can be described as difficult, and some even went to the edge of collapse, which hurt the support of some upstream supply companies.

The temptation of large customers

In fact, several years ago, after many lessons learned and experience, there is a lot of the brands announced: no Distribution credit. But a reality that some marketing companies is not strong, especially in a large number of private polishing factory, still had to Distribution credit for the "bait" to attract dealers, but had secretly swallow the bitter fruit of credit Distribution .

With industry insiders, since the second half of 2008, by the financial crisis, the trend of shrinking high-end ceramic market, while the low-end market demand is heavy volume gradually increased, Foshan, polished products targeting low-end private polishing plant homeopathic expansion gradually increase production capacity. Private throw new plant opened, the new brand, how to throw with the existing plant in the private brand competition? A surplus of products, lack of sales channels, distributors, trying to become the private factory for throwing the object.

Marketing department of a private throwing a plant official told reporters, throwing plants for private purposes, often many companies assume 10% of the major clients of the ceramic enterprises 70% - 80% of product sales. This is a direct result of the various ceramic enterprises increased competition for large customers while also increasing sales of each ceramic enterprises increasingly large cost of sales expenses. The end result is a ceramic enterprises accounted for 70 - 80% of products sales of large customers, the profit contribution of the ceramic enterprises should produce far less than the profits of its value. However, if the 10% loss of large customers, for the ceramics enterprises, especially the scale of production have reached a certain production of ceramic enterprises, may face the risk of life and death.

"A big distributor means to enhance sales, factory owner to rely on throwing away the amount of private profit, how can you not attach importance to dealers? There are many dealers to us talk about an agency, we must credit mouth, and said other private polishing factory has this policy, if we do not give, not agents of our products. "The above official told reporters that the phenomenon of credit to private customers throwing plants become increasingly competitive. In addition, as long as new customers, customers would require credit, which allows companies a headache. "The same product, same colors, same quality, why should we vote for you?" The credit is part of the distributors of the problem set answers.

There are senior people in the industry pointed out that sales of large ceramic lead them has come to sell the right to speak ceramic era, they produced ceramic manufacturing a decisive influence and role. Ceramic sale terminals in control of large customers, manufacturers began to rely on the extension of the usual habit, the more increased the demanding requirements of ceramic manufacturers. And many companies are like harm than ceramic, ceramic terminal sales still rely on large customers.

This factory, supplier relationship, the ceramic enterprises and terminal distributors of the game has become a vicious cycle of product sales process.

Credit spread of the shadow of the whole industrial chain

Credit conditions not only in the ceramic enterprises, private cast plants, the majority of ceramic chemical companies, faced with the situation of arrears ceramic enterprises are also miserable.

Polishing plant dealers and private credit suffered the same situation, ceramic chemical companies supply to the first ceramic enterprises, before also provide many free services, transfer board, from small test pilot to the final production, chemical industry, especially color glaze track in the end all the way businesses are. Smooth out the product after delivery, and began to supply ceramic enterprises, the use of glaze is less then a month a few hundred kilograms, as many as several hundred tons, in particular the prevalence of current industry full cast glaze, crystalline glaze throw best-selling products.

Chen clerk in a chemical enterprise engaged in industry, has colored glaze 6,7 years, just hanging there, complete customer account, and got a two-month delivery on the loan promissory note, payment dates impressively stated in May 2011. Chen said this is very common, general business loan will be delayed more than 3 months before closing, and this is the other companies in the case of relatively trustworthy.

Chen said that in 2010 the good market conditions, payment of ceramic enterprises are relatively smooth, generally 2 to 3 months can get the money. However, 2010 sales nosedive ceramics, competitive market, many cash-flow ceramic enterprises stretched, so the more delayed the longer payment period, or even nearly 10 months.

However, even if the delay will get paid for 10 months the situation has been very good, and many sales and business in the Distribution and not pay attention to each other when the operating condition and reputation within the industry, market share of shipments blindly and many small enterprises in the fierce competition in the market can not afford the defeated, or difficult, or shuttered, resulting in a lot of money simply can not be recovered. "People were running, where to look?" Chen said.

In particular, the chemical industry, in 2010, rising raw materials, chemical enterprise funds continue to be stuck with ceramic enterprises credit, financial security is facing a great threat. "But you can not deliver, not out of stock, or maybe even before the money could get it back. And you do not have a lot of companies will do it." Chen said helplessly.

The end of 2010, reporters have heard friends complain about a large number of chemical companies large sums of money has not recovered, and some even from the first onto the end of the year. "Companies reminder of the tight, customers another delayed again and again and once product has a problem, the day of payment, even feeling a distant dream." Chen is very anxious. Salesman for some, they are not basic salary, all revenues from the commission to recover the purchase price.

When a reporter asked Chen is aware of some dealers ceramic enterprises will encounter not justify the capital credit by dealers lead to "kidnapping", the Chen said that for some small businesses may encounter such a situation, But for many large enterprises, the dealer is arm is thigh. "Sometimes the more we will be more large enterprises and a long delay time, they are using the money to keep rolling development, chemical industry and it was ceramic enterprises 'kidnapping' of."

Liquidity has always been regarded corporate blood, blood is frozen, or insufficient blood supply, ranging from lead to physical weakness, while in critical condition, dealers with credit "kidnapping" the private cast factory, "kidnapping" the ceramic enterprises, ceramic enterprises with credit "kidnapping" the upper reaches of the chemical industry, the whole industry chain revealed an unhealthy atmosphere. An expert had to say, ceramic enterprises with the upper reaches of the money to develop chemical companies, but curbed to some extent chemical companies better and more healthy development. As we have seen, machinery and chemical industry product upgrading, promote the continuous development of the ceramic industry, but a variety of R & D investment has repeatedly denied the funds necessary to promptly resolve this unhealthy cycle back and forth again and again if it was impact will not just one or two chemical companies, but the entire long-term development of Chinese ceramics industry.
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