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Wenzhou Caesarway Hardware Products Co., Ltd.

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Mikalla Woo

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Some Conjecture Sanitary Industry Development

First, excess capacity will continue

2016, China's economy will maintain high-speed running, however, involved in the real estate industry downturn, sanitary ware market will not have a big growth. After the 2015 market turmoil, a group of companies were forced to sanitary eliminated, and even companies in October began a long holiday break. It can be predicted, in 2016, this situation will continue.

Although sanitary enterprises are basically private enterprises, self-regulation and adaptable, but the long-term idle capacity, so that capacity can not reasonably released, it will drag on enterprises. Overcapacity, on the one hand intensified the vicious competition in the market, reducing the profitability of enterprises, on the other hand, long-term excess will inhibit future investment industry, and ultimately affect the demand chain supporting industry. Resolve the overcapacity or the demand side to do the addition or subtraction on the supply side, in the current economic context, expect the economic recovery to improve capacity utilization is clearly unrealistic, therefore, can only further contraction in supply.

Second, many companies went to "upgrade"

Transformation and upgrading is an old topic, how turn? How liter? Many companies still do not have a clear strategy and path. New models, new environment, new location varied, new concepts, new case, new thinking emerging, it all makes corporate anxiety, confusion but a loss. For example, the corporate structure of the platform, open enterprise boundaries, enterprise-scale moderation, employees create customer-oriented, another example business organizations "to the center", to "produce" as the center to "customer" as the center changes in grade, centralization, subject to the core of management thinking and military equality, open, interactive conflict as the main theme of the internet and other platforms, companies often make a loss.

By 2016, many companies still enthusiasm, went on the road one after another to upgrade, but the upgrade is not a panacea for business shed cocoon. Many companies are either lost in the transformation and upgrading of junctions, or fallen on the road of transformation and upgrading.