China Ceramic Network releases "Proposal on Jointly Resisting 'Internal Rolling' Malignant Competition"
August 23, 2024 Source: China Ceramic Network Editor in charge: Liu Sitao Read: 22210 26
In recent years, why have ceramic enterprises (manufacturers) and distributors paid more and more, with higher costs, while profits have become lower and survival has become increasingly difficult?
To investigate the reason, one word cannot be avoided: involution.

Since 2020, as this term gradually became popular across the internet and entered people's lives, "everything can be rolled up" has become a norm.
What is involution? We don't need to drop the book bag, please explain in detail its origin and development.

Simply put, 'involution' refers to the inflation of effort, which means internal friction or putting in more effort but receiving the same or even less return.

From the perspective of striving for excellence, 'involution' does not necessarily seem to be a bad thing. Isn't it good for the development of the entire industry for ceramic companies and distributors to compete in innovation, quality, and service?

However, you have seen several ceramic companies and distributors engaging in positive competition, with everyone only focusing on price.

In the "involution", the price of ceramic tiles continues to decline, the quality of products and services also declines, and the profits of ceramic enterprises and distributors continue to decline... Bankruptcy and bankruptcy phenomena in the construction ceramic industry also continue to occur!

Do you still think this' involution 'is a good thing?

Now, the time has come to break the internal competition - the country has officially fired the first shot of "anti internal competition". Many industries have actively responded to the call of the country, and relevant industry associations have issued proposals for "anti internal competition"; However, the pottery industry remains calm and peaceful.

As the mainstream media in the industry, China Ceramic Network has responded to the situation and issued a proposal on jointly resisting the vicious competition of "internal competition", hoping to break this terrible "calm and peaceful situation".

Proposal from the Ceramic Industry to Jointly Resist the "Internal Rolling" Malignant Competition

The Central Political Bureau meeting held on July 30th proposed to strengthen industry self-discipline and prevent vicious competition in the form of 'internal competition', sending a clear and firm anti internal competition signal, marking the country's official first shot in the fight against internal competition.

In recent years, with the continuous downturn of the real estate market, the contradiction between overcapacity and shrinking market demand in the construction ceramics industry has become increasingly prominent, and the vicious competition of "inward rolling" low prices has intensified. While the price of ceramic tiles continues to decline, their production and operating costs are also increasing day by day. In the midst of difficulties, many ceramic companies have compressed costs by reducing product quality, with the aim of maintaining market share and gaining profits from Weibo through "low profit, high sales". However, this ultimately leads to difficulties for themselves and distributors to sustain themselves, hovering on the edge of the "life and death line", and even being eliminated directly. For the entire industry, it is urgent to actively respond to the national call and take the first step towards "anti roll"!

In this context, as the mainstream media in the ceramics industry, China Ceramic Network deeply feels the great responsibility and hereby issues the following initiative to all industry colleagues to jointly resist the vicious competition of "internal competition":

1、 Recognize the harm of internal competition and establish a positive competitive perspective. The vicious competition of "internal competition" not only seriously compresses the profit space of ceramic enterprises and distributors, but also seriously hinders technological innovation and industrial upgrading, and causes a decline in product quality and damage to consumer interests. We must deeply recognize its enormous harm, establish a correct concept of competition, and advocate for positive competition centered on quality, service, and innovation.

2、 Strengthen industry self-discipline and jointly build a fair competitive environment. Strengthening industry self-discipline is the key to resisting the vicious competition of "internal competition". To truly 'reverse the competition', we must strictly abide by relevant national laws, regulations, and industry rules and norms, refuse to participate in and resist unfair competition behaviors such as low price dumping and false advertising, and jointly maintain market order. It is suggested to establish an industry "anti roll" organization, strengthen the role of industry associations, formulate and implement "anti roll" regulations, effectively supervise and punish violations, and create a fair, transparent, and healthy competitive environment.

3、 Implement innovation driven and promote differentiated development. In the face of vicious competition characterized by internal competition, innovation is the only way to break through. We should increase research and development investment, explore new technologies, materials, and processes, develop distinctive products with independent intellectual property rights, and achieve differentiated competition; Using digital and intelligent means to optimize production processes, improve efficiency, reduce costs, and enhance market competitiveness.

4、 Enhance communication and cooperation to achieve mutual benefit and win-win outcomes. On the road of 'involution', cooperation is more important than competition. We should actively explore opportunities for communication and cooperation in the upstream and downstream industrial chains, share resources, collaborate on innovation, explore new markets, and expand the industry cake; Strengthen communication and cooperation with international peers, introduce advanced experience, enhance international competitiveness, and explore overseas markets.

5、 Carry out publicity work and create a good atmosphere. In the process of "anti roll", it is particularly important to do a good job in publicity and create a good atmosphere. We should make full use of various media, especially new media methods, actively spread the concept of positive competition and successful cases, establish industry benchmarks, and form positive effects; By organizing various forms of activities such as forums, lectures, and symposiums, we aim to build a platform for industry communication and exchange, and jointly find a path for high-quality development in the industry. For example, based on the highly successful interview live broadcast program "Three People's Tour of China Ceramic Industry", China Ceramic Network has launched a special program called "Breaking the Scroll Talk" on "Three People's Tour of China Ceramic Industry", aiming to work with ceramic enterprises to "find ways to break the scroll and maintain industry development".

We must firmly believe that with the joint efforts of all colleagues, the construction ceramic industry will successfully break through and embark on a high-quality and sustainable development path!

I hope that the bosses and professional managers of ceramic enterprises will actively participate in the special column "Breaking the Scroll Talk" of "China Ceramic Three Person Tour", and work together with China Ceramic Network to contribute to the "anti roll" of the ceramic industry with practical actions!