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 of the industry chain. At the same time, there must be channel expansion and brand merger and reorganization. In a billion-dollar market, the market share of all local listed companies is less than 10%. On the one hand, it is due to the strength of foreign brands; but on the other hand, the local enterprises have weak business integration capabilities.
Compared with the business scope of foreign brands, TOTO's product categories include toilets, bathtubs, basins, faucets, face-washing make-up tables and ceramic tiles; the company's product categories include bathroom faucets, washbasins, toilets, showers. Room, bathtub and smart toilet cover.
In contrast, Hengyuan sanitary ware and Dima sanitary ware, the production of toilet cover and shower room, the former is the accessory, the latter is also a product category of the larger sanitary ware brand. Whether it is a B-side real estate developer, a hotel or a C-end consumer, in the decoration process, due to cost, time, design style considerations, it is more inclined to unified decoration, one-stop purchase, which is also the current custom home hot the reason.
With the development of customized home and self-installation business, the decoration of the bathroom space will also conform to this trend. The test will be the supply chain integration capability, and the enterprises that provide more product categories and better services will surely seize more. More market space. The arrival of the industry reshuffle period will be the era when the "big fish" eat "small fish".
Second, the whole bathroom. The insiders judge that the fastest time for custom home growth will come, consumers have higher requirements for space utilization, and single product customization has affected the sanitary ware industry. For example, the bathroom cabinet business of Huida Sanitary Ware was affected by the customized market in 2015. The performance has shrunk.
The self-contained sanitary ware has been effectively developed in the market abroad. According to the data of CIC, the penetration rate of the self-contained sanitary ware in Japan is about 70%, and the domestic penetration rate is about 10%. And mainly concentrated in the convenience of hotels and real estate developers on the B side, the C-end market has not yet opened. However, as consumers' demand for space utilization grows and the construction of affordable housing progresses, the domestic market potential is about to trigger. At present, there are not many enterprises that arrange the whole bathroom in the industry. Seagull bathroom is the forerunner.
Even if we ignore the advantages of the whole bathroom in terms of construction period, waterproofing and construction, we can eliminate part of the single business by simply integrating the capabilities of all sanitary ware products.
Again, smart bathroom. As far as the entire smart home industry is concerned, industry insiders predict that China's market size in 2020 is expected to exceed 180 billion yuan. Subdivided into the sanitary ware market, its market size can not be underestimated. Taking smart toilets as an example, the penetration rate in Japan and South Korea is close to 90% and 60% respectively. Domestically, some products have been used in shopping malls and hotels, but The domestic penetration rate in 2015 is less than 2%. Although the toilets, shower rooms, bathtubs, and bathroom cabinets in the domestic market have achieved different levels of intelligence, the same problems as the smart home industry, the entire market lacks uniform standards, and the modularization and generalization are insufficient.
The implementation of the standard will help the development of smart sanitary ware. In 2015, the domestic appliance association intelligent bathroom electrical appliance committee was established in China. The participating enterprises include Kohler, Jiu Mu, Wrigley, Hengjie, Panasonic, TOTO, Duravit, and Oulusha. Geberit, Anwar, Faenza, Yizhu, Jiejiebao, Sunrise Oriental, Jianlin, Huida, Rongshida, Yihe, etc. There are two points worthy of attention. First, many participating companies; secondly, foreign brands such as Kohler, Panasonic, TOTO, and Duravit are actively participating, and have begun production and sales of smart bathroom products.
Foreign brands have begun to deploy smart bathrooms. If domestic sanitary ware companies can't keep up with the trend, the gap with their rivals will grow bigger and bigger. On the contrary, just as the United States and Japan can use the second industrial revolution to achieve economic and technological catch-up, smart sanitary ware as an industry and technological change is also an opportunity for domestic sanitary ware enterprises to achieve big strides.
Finally, e-commerce. Although the current level of e-commerce in the field of household building materials lags behind the average level of all industries, the other five companies have not been listed in the five listed companies except for Hengyuan Sanitary Ware, which has less than 5% of domestic business. Just as Huida Sanitary's understanding of e-commerce business will not replace traditional sales channels in the next few years, its brand promotion role deserves attention.
Home improvement industry experience under the heavy line, home building materials supply also needs to be offline, but as consumers rely on online channels and network information search, increase the display and sales of online products can achieve the integration of online and offline brand image.
Industry concentration is low. For enterprises, opportunities and challenges coexist. If you can look at industry trends, you can do more with less. CIC Securities data shows that China releases about 25 million sets of dressing market and 10 million sets of new home market each year. With the continuous improvement of urbanization level, the demand growth rate of sanitary ware products is comparable to that of kitchen electric industry. Local sanitary ware companies, rather than making wedding dresses for others, are better off from parts production and supply to multi-category, self-contained and intelligent development, from independent suppliers operating in OEM and ODM mode to independent brand management.