The competition pattern and countermeasures of China's stone industry market

Abstract China's land resources are abundant, and stone resources are spread all over the country. From the perspective of domestic and foreign markets, the stone industry is a booming industry. Since the reform and opening up, relying on the rapid development of the domestic construction industry and real estate industry, China's stone industry has achieved great results, stone has become...

China's vast land and resources, stone resources throughout the country's provinces and autonomous regions, from the domestic and international markets, the stone industry is a booming industry. Since the reform and opening up, relying on the rapid development of the domestic construction industry and real estate industry, China's stone industry has achieved great results, and stone has become one of the important raw materials for roads, bridges, decoration and construction.

From the perspective of the domestic market, on the one hand, due to the slowdown in macroeconomic growth, environmental protection and rectification, national real estate control policies and the slowdown in domestic fixed asset investment, the stone industry faces a series of weak demand, lower product prices and lower economic returns. problem. At the same time, the domestic real estate market was sluggish, and the demand for decoration was directly affected, and domestic sales declined. On the other hand, driven by the acceleration of urbanization, the promotion of state investment and the upgrading of household consumption, and the national strategy of “One Belt, One Road”, China's stone industry is ushering in a new round of great development.

From the perspective of the international market, on the one hand, the global economy is showing a slow recovery and the trade situation is gradually improving. The infrastructure construction, housing construction, and asset investment construction in developed countries and emerging market economies are expected to form a large demand for stone products. At the same time, due to its resource consumption and destructiveness of production, the stone industry has caused many multinational companies. Going to China to invest in building factories or operating stone, this also brings opportunities for the development of China's stone industry. On the other hand, as uncertainties in the international market are also increasing, trade barriers, technical barriers and trade frictions are also increasing, and international trade competition is increasing.

At present, China's annual output of stone has exceeded 10 million tons, becoming the world's largest stone producing country and consumer country. The stone industry urgently needs to expand the stone industry, thus promoting industrial intensification and modernization. The purpose of this paper is to understand the status of the industry in which the enterprise is located in the management of the stone enterprise. The company forms its own unique position according to its actual situation, formulates its own competitive strategy, continuously innovates and improves the core competitiveness of the enterprise, and integrates its own and industry resources. Continuously break through the concept of perfection and provide an important reference for the business strategy.

First, the stone market presents obvious regional characteristics

China has initially formed some large stone bases, and now China is the largest stone processing trade base in Asia. According to official statistics, there are 4,172 stone materials enterprises in Fujian, Henan, Guangdong and Shandong, respectively, 3,718, 2,453, and 3,663, accounting for 89.4% of the total number of enterprises. The production of Chinese stone is mainly distributed in four stone industrial centers in Henan Province to the central part, the southern part of Fujian Province, the eastern part of Guangdong Province and the eastern part of Shandong Province. Among them, Fujian and Henan are the major provinces for raw materials and processing, while Guangdong is mainly engaged in imported stone. Processing, the stone market presents obvious regional characteristics. In addition, some other provinces, such as Sichuan Province, Shanxi Province, Hebei Province, Inner Mongolia, Yunnan Province, Guangxi, Xinjiang, Anhui, etc., have a certain amount of varieties to be mined and processed.

Second, the pattern of strong competition in the stone industry

China Stone Top Ten Brand Enterprises have established a well-known brand image in the industry, with strong design, research and development, processing capacity, and has formed a relatively mature business model. Although China's stone has a certain influence at home and abroad, it is still a lower-level brand, mainly in the following aspects: First, the lack of strong stone enterprise brand support; Second, the brand's product and technical support is insufficient; Third, the credibility of famous brands needs to be improved; fourth, the influence in the international market is limited. At present, the stone industry has entered a state of complete competition. The market concentration of China's stone industry is relatively low. The general industry's general profit is low. It is in a relatively sluggish industry. Stone enterprises urgently need industrial mergers and acquisitions to enhance the competitiveness of China's stone enterprises in the world. To form enterprise groups with core competitiveness and strong regional market competitiveness, as well as enterprise groups with strong international influence. Under the increasingly complex competition pattern, the global industry has been transformed from a simple development trend of point-to-point competition between enterprises and enterprises to a chain-type or even network-type competition between the industrial chain and the industrial chain, the value chain and the value chain. . In order to gain an advantage in the fierce competition in the future, stone enterprises need to focus on optimizing the industrial value chain and integrating the industrial chain and value chain in order to achieve healthy and healthy development of the enterprise.

Third, the stone industry has good prospects

Based on the latest official statistics, there are 37.3% of stone enterprises in the 21,192 stone enterprises with a turnover of more than 5 million, and 19.5% of the stone enterprises with more than 10 million. In the face of huge consumer market, plus developed The transfer of national stone manufacturing, stone products have broad market prospects. However, the current stone industry has problems such as inadequate planning and mining methods and backward technology, which results in low yield of mined minerals, serious waste of resources and destruction, excessive disordered mining of some ore, and rising labor, environmental protection, raw materials and other costs. The profit is reduced, and the profits of stone enterprises are slightly reduced.

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Fourth, the analysis of Porter's five-force model in the stone market

Industrial structure analysis is the basic analysis method of enterprise competition strategy. According to Michael Porter, there are five kinds of forces in the industry that determine the scale and extent of competition, namely: the threat of new entrants, the bargaining power of suppliers, the buyer’s Bargaining power, the threat of alternatives, and the competitiveness of competitors in the industry. As shown in the figure below, we can determine the strongest one or several forces in the industry through the five-force model. We use the five-force model to analyze the stone industry and find the key factors that influence the development of the stone industry.

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V. Stone industry competitors

According to the official statistics of 21,192 stone enterprises, the establishment time of 387 of these enterprises is unknown. From the following figure, it can be seen that the number of stone enterprises is also growing rapidly. The competition in the stone industry is intensifying, and disorderly market competition leads to The price of each other is under pressure and shoddy. The vicious price competition within the industry has severely restricted the orderly development of the industry. The stone industry has ushered in an integration period. In the hot period of real estate in the past few years, the entry threshold for the stone industry was low, some stone enterprises rushed to set up, and stone enterprises were also profitable due to real estate. Nowadays, the real estate market has entered a period of depression, the demand for stone has decreased and the rapid growth of enterprises has brought about some problems such as overcapacity. At the same time, the government and industry authorities have supervised and controlled the stone industry, increased control and resource integration, and urged enterprises to accelerate the industry. Optimized and upgraded, the number of stone enterprises has slowed down since 2010, and stone enterprises should make corresponding industrial adjustments to actively respond to market changes.

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6. Plate production and regional distribution

The output of marble enterprises in stone enterprises was 300 million square meters, an increase of 17.2% over the same period of the previous year. The growth rate dropped by 12.8 percentage points from the previous year; the output of granite enterprises in granite enterprises was 590 million square meters, an increase of 13.4% over the same period of the previous year. Compared with the previous year, it was 1.1 percentage points higher. The overall plate output showed an upward trend, and the growth rate showed a significant downward trend. From the regional perspective, the growth rate of marble plate production in the central and western stone enterprises was 18.6%, and the growth rate of granite plate production was 18.9%, which was 3.9 and 8.3 percentage points higher than that in the eastern region. The proportion of marble plate production in the central and western regions increased by 2.7 percentage points compared with 2013, and the proportion of granite plates increased by 6.2 percentage points. From the perspective of total production, the proportion of eastern stone production decreased, the growth of western regions was obvious, and the development potential was huge. The industry is shifting from east to west.

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Seven, stone manufacturers

The main business income of stone enterprises totaled 298 billion yuan, an increase of 12.7% over the same period of the previous year, down 8.9 percentage points over the previous year; the main business cost was 334 billion yuan, an increase of 14.7% over the same period of the previous year. It fell 9.2 percentage points; the main business profit was 59.96 billion yuan, an increase of 2.8% over the same period of the previous year and a decrease of 8.7 percentage points over the same period of the previous year. Stone enterprises realized a total profit of 32.8 billion yuan, an increase of 4.30% over the same period of the previous year and a decrease of 23.9 percentage points over the same period last year. The cost of stone enterprises continues to grow, the growth rate is higher than the business income, and the profit growth rate of stone enterprises has declined. From the overall growth trend, due to the rising pressure on labor, environmental protection, raw materials and other costs have not been fundamentally alleviated, the growth rate of the main business income of the stone industry is lower than the cost of the main business, reducing the profit margin, the profit growth of the main business is obviously slow. Stone enterprises lost 89, with a loss of 3.11% and a loss of 210 million yuan. Among them, there are 600 mining enterprises with 24 losses, with a loss of 4.00%; 2266 processing enterprises with a loss of 65 and a loss of 2.87%. Since 2014, the industry's loss has rapidly expanded and the loss has gradually increased. From the perspective of the industry, the losses of mining enterprises are higher than those of processing enterprises, and the losses of enterprises below the scale will be more serious.

Eight, alternative products emerge

The threat of stone substitutes has three aspects: the competitiveness of stone substitutes in price; the satisfaction of the quality and performance of stone substitutes; the difficulty of customers turning to stone substitutes. Nowadays, the rising space of the stone market is still very large, but with the advancement of technology, the emergence of new related building materials products poses a new threat to the stone market. New plastic products, ceramic tiles and related cement products are all strong competition for stone. By. Compared with stone products, it has more advantages in terms of price, so it is widely used, but it is not enough to directly impact the stone, but it also needs to pay enough attention to stone enterprises. Compared to its alternatives, the stone is beautiful and durable. However, the stone itself is more important, the material is brittle, and the construction process is complicated. With the advancement of technology, more and more stone substitute products will appear on the market, but due to some characteristics of the stone and the preferences of consumers, the demand for natural stone and the demand for substitutes will grow together, and will not appear completely. Alternative situation.

Nine, the threat of new entrants in the stone industry

Among the 21,192 enterprises in the official statistics, 76 business models are unknown, 14292 companies are manufacturing enterprises, accounting for 67.7%, and non-production and processing enterprises have 6,963, accounting for 32.3%. As the scale of stone enterprises expands and their strength increases, production-oriented enterprises move forward and trade-oriented enterprises move backwards. Production-oriented enterprises begin to contact customers and markets, while enterprises that do stone trade are not satisfied with the establishment of stone processing plants. The order of the stone market is chaotic. As long as it has the ability, both stone processing enterprises and stone trading enterprises have embarked on the road of mixed trade and processing, resulting in overcrowding, over-competition, falling prices and falling profits. At the same time, the potential entry threat of trading companies, the trade industry is the network construction and maintenance of customers, and the trade process is similar, so it is not difficult for trading companies to change or add new trade varieties. Companies that have not yet entered the stone trade are likely to enter this field and are potential entrants to the stone trade.

Ten, the consumer market of stone

In the stone industry, as information about manufacturers' costs is more transparent, and the Internet as a powerful sales and distribution channel, consumers seem to be changing the power balance within the industry. The consumer choice is large and the conversion cost is as low as almost zero. This kind of environment is forcing companies in the stone industry to upgrade their core competitiveness, and service will become the key. Whoever wins customers with more professional and in-place services will win the market.

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It can be seen from the above analysis that the existing competitors, the existing competitors, the suppliers and the consumer market are more prominent in the five competitive pressures. The stone industry is in the stage of rapid development and has good government policy support. Only by better adhering to the principle of competition, scientifically analyzing its own competitive pressures in various aspects, providing customers with more professional, comprehensive and in-depth services can form advantages and win competition. To win in the competition.

Eleven, the stone industry competition disorder

According to official statistics, 16,504 of the 21,192 stone companies are private companies, accounting for 79.5%. Most of the stone enterprises are small private enterprises. The stone industry has low concentration and poor scale effect, which makes the stone enterprises still in the low-end part of the industrial chain and has low international competitiveness. With the growth of industrial clusters and changes in external competition, the industry is disorderly and the industrial structure is unreasonable, which limits the development of enterprises and the upgrading of industries.

Twelve, product development is limited

First of all, the homogenization of products in the stone industry has intensified the vicious competition in the market. The innovation of stone products is easily copied and copied by the market in a short time, and the whole industry is in a development dilemma. Secondly, due to the special nature of stone products, inventory problems have brought greater capital turnover pressure to enterprises. In particular, affected by the economic downturn and real estate regulation and control policies, the development rate of the stone industry has slowed down and the inventory problem has become more serious. Some enterprises have carried out low-price promotions on the backlog of fragmented stocks, but as prices become increasingly transparent and competition is fierce, this approach will not only reduce inventory pressure but also bring purchase wait-and-see and negative chain reactions to the market, and even form vicious competition. Once again, after the company develops high-margin products, it is not trying to improve product quality and added value of products. Instead, it tries to reduce costs, lacking the concept of overall situation and sustainable development. Finally, the lack of stone standards and the lag of the standardization system have brought challenges to stone production and industry management, as well as opportunities for low-quality products.

Thirteen, lack of brand

The vast majority of China's stone is small and medium-sized enterprises, large and large enterprises are basically not, and individual, private, collective and other small enterprises mining and processing enterprises are numerous, lacking certain brand awareness. The first is to build a small amount in the specialized trading market. Secondly, the marketing method of the enterprise is too simple, the former shop and the factory, the traditional waiter, the lack of the overall concept and the sustainable development of the marketing concept. Only 1,081 of the 21,192 stone companies surveyed have Internet marketing awareness, accounting for only 5.1% of all surveyed companies, and the stone companies that have been certified in 2012 have seen significant growth. This year’s growth is also more obvious, but the implementation is real. There are no more than 600 companies, as shown in the following figure. Many stone enterprises have not incorporated brand development into their corporate development plans. In the course of business, they only pay attention to product prices and product sales. The sustainable development of China's stone industry is being tested. The stone industry is in urgent need of structural optimization and brand upgrading.

14. The overall quality of human resources is not high.

According to official statistics, there are 19.7% of enterprises with less than 10 employees, 59.6% of stone enterprises with less than 50 employees, and 86.4% of enterprises with less than 100 employees. This shows that among the stone enterprises in China, small and medium-sized enterprises Enterprises account for more than 90%. The number of employees in small and medium-sized enterprises is relatively small, and the organizational structure is relatively simple. Most of the enterprises have a low level of master education. Most of the employees are junior high school and below. The lack of high-quality technical and managerial talents is not professional, weak and large. Enterprise competition, which is also an important reason for the low utilization rate of China's stone resources, high production costs and poor economic returns.

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Fifteen, the scale of the stone area is not effective

The number of stone enterprises is large, the distribution is wide, the cooperation awareness of the group is low, the production structure of the whole industry is unbalanced, the industry concentration is low, the market competition is fierce, and the overall profit level is low. Industry restructuring, mergers and acquisitions and resource integration are imperative. Although Chinese stone has a certain influence at home and abroad, it is still a lower-level brand. Stone enterprises have neglected economies of scale while expanding in quantity, and regional brand benefits are not strong, and corporate brands have not been established.

16. Rational mining, advocating a low-carbon economy, forming a green industry cycle chain

The stone industry is not the material that is not formed by mining, the margins left by the enterprise, the dust, sewage, noise generated by the primary processing enterprises, the interests of the people around the crisis mining area, and the crisis to the survival and sustainable development of the industry. These have restricted the factors that stone processing enterprises are fully developed in a better geographical location. The stone industry should further improve the level of mining and processing technology, strengthen resource conservation and improve the level of clean production. This is the foundation of the stone industry and the urgent and arduous task of transformation and upgrading of the stone industry.

17. Accelerate product and technology innovation and increase product added value

China's stone industry must pass product and technological innovations in order to revitalize the stone. At present, the stone industry has made breakthroughs in key processes and equipment for mining and deep processing, and the level of mining mechanization, large-scale and specialization has been significantly improved. In addition, stone enterprises should strengthen cooperation with designers, and strive to explore the cultural connotation of stone, so that the use value and artistic value of stone can be improved, while improving product quality and increasing product added value.

18. Strengthening personnel training and improving management level

With the development of the stone industry, the talent problem has become a key factor restricting the development of the industry and enterprises. The quality of employees directly affects the quality of business operations and the quality of business management. Therefore, it is very important to strengthen the professional skills training of employees and the professional level of management personnel.

19. Integration of stone resources to achieve economies of scale

In order to achieve structural adjustment and upgrading, China's stone industry needs to take resource allocation as the starting point, integrate stone resources, gradually realize economies of scale, strengthen weak links in the industrial chain, achieve complementary business, and enhance the overall level and competitiveness of the industry. Therefore, the stone industry should realize integrated production, integrated marketing, integration of resources, integration of operations, accelerate the formation of industrialization, industrialization, and industrial chain, and promote the growth and improvement of the stone industry.

20. Leading the development of the industry with standards and creating a level playing field

The stone standard provides a reliable basis for industrial upgrading and industry access. It gradually improves the stone standard system, strengthens the publicity and implementation of existing standards, and increases the implementation of standards. This is the common responsibility of the industry, enterprises and government authorities. This will not only help eliminate backward enterprises, create a good competitive environment for law-abiding enterprises, expand the market space at home and abroad, but also promote the healthy and sustainable development of the industry and promote the industrialization and industrialization of the stone industry.

Twenty-one, comprehensively promote the entry of stone products into the home improvement market

2018 is the most serious development stage of the stone industry, and the stone industry urgently needs to open up a new economic growth point. The largest part of Chinese stone consumption is the interior and exterior decorative panels of the building. Stone has its unique advantages and is incomparable to other decorative materials. Entering the home improvement market is an ideal development area. In order to enter the home improvement market, stone should be standardized and standardized on the products, and implement experiential marketing, so that consumers can directly select materials and increase the strength of stone products in the decoration market. The home improvement market is gradually heating up, which will provide a large space for development for stone enterprises and become a new growth point for the economy.

Twenty-two, summary

The development of the stone industry should be dominated by the domestic market. The domestic market is the main market of China's stone industry. It correctly understands the current economic situation and rationally views the fundamentals of China's economy and the stage in which it is located. While relying on the real estate market, the stone industry should also actively open up the home improvement market. In the future, the rectification of stone mines will be intensified, and small enterprises with low productivity will be eliminated, and the industry integration speed will be accelerated. Stone standardization, innovation, and research and development will be valued and upgraded, and become the vane of stone development. The e-commerce of the whole people will emerge. Under the promotion of the government, e-commerce will promote the upgrading and transformation of stone. Therefore, stone enterprises should take this opportunity to accelerate the pace of enterprise informationization, conduct e-commerce, conduct online transactions, control business costs, and initially construct the basic framework of “digital stone” to accelerate product marketing.

In order to develop rapidly in China's stone industry, it is necessary to create brand products internationally and take the road of quality. Trade barriers, technical barriers and trade frictions have increased, labor costs, environmental protection costs have continued to rise, the renminbi has continued to appreciate, and prices have become transparent. As a result, the export advantages of Chinese stone in terms of price are gradually disappearing, and the industry as a whole has not yet formed a core competitiveness. International trade competition will further increase. However, at present, the international market situation is complicated, but the uncertainties in the international market are increasing, the pace of recovery is not fast enough, various trade protectionism is increasing, and the competitive pressure of stone is gradually increasing.

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