Hengjie Sanitary Ware Jiansheng: The sanitary industry is in the Chaoyang period

Liang Jiansheng, Director of Hengjie Sanitary Ware Marketing Center

[Reporter]: Hello Director Liang, first briefly introduce the theme of this Hengjie bathroom exhibitor?

[Liang Jiansheng]: The name of Hengjie's booth at the 17th Shanghai Exhibition is “Hengjie China Pavilion”. The main theme is water conservation and environmental protection. We have a saying called "To create Chinese quality together." The brand concept of this exhibition is " Chinese sanitary ware, constant clean quality ", they are in the same line.

[Reporter]: You just said that there are two main points. The first one is water-saving and environmental protection, and the second is the quality creation and image shaping of local brands. But now many companies are doing water conservation and environmental protection. Where is the difference between Hengjie?

[Liang Jiansheng]: Water-saving and energy-saving is a trend and trend of sanitary products. The standard for national water-saving toilets is 6 liters. Hengjie has been investing a lot of resources in the water. After 14 years of accumulation, we have also achieved certain results in the water-saving technology of the toilet. The water-saving toilets we launched at this exhibition have now reached the energy-saving standard of 3 to 3.5 liters.

[Reporter]: Many people report that the market environment this year is not particularly optimistic. What is the feeling of Hengjie’s own feeling so far?

[Liang Jiansheng]: 2012 is a key year for real estate macro-control. In the current environment, the overall consumer demand has indeed declined. Our performance from January to May this year and the year-on-year performance from January to June last year. Look, this year is indeed colder than last year.

But we found an interesting phenomenon. The market sales in January-March were actually ok, but it was only in April-May that sales fell. I analyze this to be related to consumer expectations of housing prices. From January to March, some customers with rigid demand directly purchased. After April-May, there is room for further reduction in house prices, and everyone has returned to the stage of wait and see.

In fact, the bathroom industry has a rigid factor influencing, and consumers with rigid demand will inevitably decorate and purchase building materials. However, the demand for decoration of sanitary products for investment customers is not great. So we are currently trying to meet this part of the demand.

[Reporter]: According to your analysis, what is the current stage of China's sanitary ware industry?

[Liang Jiansheng]: The sanitary industry is still in the sunrise period for the development of the whole industry. There are thousands of brands on the market, but everyone's market share is not high. As far as I know, there are not many big brands with a market share of more than 10%.

[Reporter]: What are the big international brands such as TOTO and Kohler?

[Liang Jiansheng]: They only sell a little better in large and medium-sized cities, but because of brand positioning, they can't enter the domestic second- and third-tier cities. Now the brand structure in the domestic market is because our industry is too new and the market capacity is very large, so everyone has a share.

[Reporter]: What is the expected direction of the market change?

[Liang Jiansheng]: I think the direction of market changes is from the general trend. After this year, rigid demand may recover. Because the rigid demand will enter the market when the house price reaches a certain expectation.

Second, from the brand's point of view, the market will gradually lean toward the big brands with good products and good service, and the bigger the bigger. Some small brands or companies that say that differentiated competition is less obvious will gradually fade out of the market. This leaves room for big brands to grow faster.

[Reporter]: What do you think is the core competitiveness of Hengjie?

[Liang Jiansheng]: Quality and service are the core competitiveness of Hengjie. In our words, we will do our best to make products and do our best to provide customers with products and services that exceed expectations. This is a basic point that we must adhere to in any marketing method. It has always been our efforts. The goal of struggle.

[Reporter]: Ok, thank you for accepting our interview.