The specialization of services in the ceramics industry is just around the corner.


Date:

2017-07-28

When it comes to installing ceramic product packages, many sellers may think it’s unlikely—but from the buyer’s perspective, this demand is becoming increasingly urgent. The reason is simple: just like fully furnished homes, many people back then also thought it was improbable, yet today it has become a reality. Today’s ceramics aren’t finished products; they’re merely raw materials. Since they’re not yet finished, they rely heavily on the meticulous craftsmanship of designers. Currently, most designers are concentrated in decoration companies. Although some manufacturers do have in-store designers, their professional expertise and credibility among consumers still fall somewhat short, making them unable to serve as the primary driving force behind design. Design specialization and credibility are the core priorities that manufacturers must focus on building first and foremost.

  When it comes to installing ceramic product packages, many sellers may think it’s unlikely to happen—but from the buyer’s perspective, this demand is becoming increasingly urgent. The reason is simple: just like fully furnished homes, which many people once considered highly improbable, have now become a reality. Today’s ceramics aren’t finished products; they’re merely raw materials. Since they’re not yet finished, they rely heavily on the meticulous craftsmanship of designers. Currently, most designers are concentrated in decoration companies. Although some manufacturers do have in-store designers, their professional expertise and credibility among consumers still fall somewhat short, making it difficult for them to take the lead in design. Design specialization and credibility are the core competencies that manufacturers must prioritize building. Only by keeping design firmly under their own control can manufacturers truly achieve the “fashionization” of tiles. Otherwise, the industry will be left selling only semi-finished products.

  The past and present of the apparel industry serve as the best illustration and learning reference for the ceramics industry. Initially, everyone would buy fabric and then take it to tailors to have clothes made. The fabric supplier charged one fee, and the tailor charged another. In terms of profit distribution from raw fabric to finished garments, the fabric manufacturer captured the surplus value created by the workers, yet their profits steadily declined over the years—until today, they’re either earning minimal profits or struggling just to stay afloat. Meanwhile, tailors have been reaping technological profits and high added value. Isn’t the way fabric was sold and profits distributed in the past precisely what the ceramics industry is doing today? Nowadays, very few people still buy clothing through the traditional model; instead, most consumers opt for ready-made garments. As a result, fabric manufacturers must either build their own apparel brands to find new vitality or specialize in manufacturing to grow stronger and bigger.

  The reason consumers are willing to accept a semi-finished product consumption model for ceramic products ultimately comes down to issues of price, purchasing power, and consumer mindset. As the post-90s generation rises to become the dominant consumer group, ceramic consumption is poised to undergo a paradigm shift: consumers now demand both affordable prices and all-inclusive services. Under this new consumption mindset, any additional secondary processing steps in the product lifecycle would inevitably lead to secondary expenditures for consumers, thereby undermining the industry’s competitiveness and profit margins. To ensure the survival of the industry and the sustained profitability of enterprises, it is imperative to move toward fully finished products—offering comprehensive installation services—and then further enhance service professionalism to reduce costs and maintain industry profits. Otherwise, the industry will undoubtedly face severe competitive pressures from rivals. In the building ceramics sector, bathroom fixtures and wood flooring have largely already adopted all-inclusive installation services. Today, more and more consumers are starting to inquire about whether installation is included when purchasing tiles, and during their purchasing decisions, they increasingly compare these options with wood flooring as well.

  Tile products with installation services included are poised to become commonplace—not as a result of competitive pressure, but rather as a reflection of an evolving consumer mindset. Currently, pilot programs offering bundled installation services have already begun in select cities. However, due to limitations in design capabilities, this approach has so far been confined primarily to the installation phase itself; the core design work that creates real value remains in the hands of third-party providers. Although this model may not generate additional commercial value for retailers, it remains highly desirable from the perspectives of competitiveness, overall profitability, and mutual benefits for both buyers and sellers. Such pilot initiatives undoubtedly represent a significant contribution to the development of the industry.

  For tile package installation, in the early stages, brand-name merchants will rely on their own in-house teams. During this period, the key focus is on creating service differentiation and reshuffling the industry landscape. The only thing that can spell doom for brands lacking added value is the rising of service standards—this is precisely the power of the invisible hand of the market, a power that is both awe-inspiring and terrifying.

  In the course of industry development, there are several main ways in which reshuffling occurs: First, creating barriers to entry—manufacturing processes fail to meet required precision levels, or achieving such precision proves prohibitively costly. Second, technological barriers—take the shift from conventional mobile phones to smart phones, for example, which has eliminated a large number of manufacturers and brands. Third, standardization barriers—standards raise the entry threshold, weeding out brands that fail to meet these requirements, as seen with China’s licensing system. Fourth, market-entry barriers—such as the 3C certification—require companies to provide certain basic services before they can enter the market; without sufficient profit margins to support these requirements, it becomes extremely difficult to gain a foothold. At present, the ceramics industry is still in the early stages of competition—everyone is simply vying over who can make more or less profit—but we’re not yet at a life-or-death juncture. However, if package installation were to become widespread, a large number of enterprises would inevitably collapse. Currently, the cost of tile installation (excluding materials) already ranges from 50 to 120 yuan per square meter. Just imagine: if the price were to drop below 50 to 80 yuan per square meter, how could these companies possibly adapt to the market and survive? Therefore, the reshuffling in the ceramics industry isn’t driven by changes in manufacturing or technology—it’s driven instead by shifts in consumption patterns and standards.

  For tiles, having merchants establish their own installation teams is just the first step in upgrading service offerings. The second step involves specialized division of labor—moving from merchants relying on their own installation teams to developing their own design channels and leveraging professional installation teams. This shift will give rise to two distinct industries: specialized tile installation and tile design. Take the home appliance industry as an example: In the past, each brand built its own after-sales service teams, with every brand operating its own dedicated service centers. However, as costs rose and profits declined, specialized after-sales service companies emerged. Today, in every city, there’s one or several large after-sales service companies that provide after-sales support for all brands. As a result, appliance brands no longer need to maintain their own after-sales teams. This model of concentrating resources and providing integrated services not only ensures high-quality service levels but also significantly reduces after-sales costs. This after-sales and installation model represents the second stage in the evolution of tile after-sales services.

  Tiles will ultimately become finished products that meet consumer needs—and this is precisely the prerequisite for the development of e-commerce in the tile industry. If tiles could be as simple to assemble as a jigsaw puzzle, online sales would become a reality. At that point, there’d be no need for returns or restocking, and there’d be no worry about deliveries arriving without anyone to install them. Although this transformation may take time, it’s bound to become a reality—and that, in turn, will raise the bar for design requirements. This shift also aligns with future demands for personalization. Right now, when people talk about personalization, many mistakenly assume it means producing entirely different products. From a manufacturing perspective, however, it’s simply not feasible to create a distinct product for every single “individual” preference—this holds true for the ceramics industry as well as for other sectors. In the future, personalized demand will likely focus more on personalization in application and on greater specialization and standardization in manufacturing.