Faucet good quality exports poor domestic sales?

Shenzhen Chenglin Sanitary Ware Co., Ltd. (ST Chenglin, 002047.SZ) became the only listed company involved in this incident. The director of the office of the company’s board of directors, Cao Guoxiang, pointed out to the media that “The lead exceeding the lead content will not The notion that sales are sold abroad and sold only in China quickly became the target of public criticism. The "lead exceeded" incident in taps gradually uncovered various unspoken rules for the production of this product. As one of the three major production areas of domestic taps, Guangdong Province has distributed many hardware and sanitary companies. The reporter visited Foshan and Jiangmen. Many sanitary ware companies have learned that faucet quality problems are different from those of the domestic production faucet industry and national standards. The low correlation is also inextricably linked to the transformational difficulties faced by the industry in the face of export difficulties.

The double standards of export and domestic sales "He is no exaggeration to say the unspoken rules of the industry." For Cheng Lin's "confession," Mr. Du, a manager of a hardware factory in Foshan, responded.

He led the reporter to a familiar hardware dealership store and showed several types of faucet products with close signals. “The appearance of these models is not really different for laymen. In fact, the hidden differences are very large, including materials, production processes, safety standards, and so on. It is not known to laymen.” said Mr. Du. These seemingly similar products range in price from 20 yuan to 800 yuan.

"The import requirements of European and American products are high, and there must be strict certifications for many standards in Europe and the United States." Mr. Zhao, a sanitary equipment manufacturer in Jiangmen, told reporters that although there are production standards in China, they are not enforceable standards like foreign ones. Strict testing, strict entry criteria, and the country is more similar to the "proposed implementation standards," not only the lack of detection of the regulatory system, even if the product does not meet the standards, companies have the means to find a market.

In addition, Mr. Zhao said that “the industry’s biggest problem” is that many companies’ production lines are set according to standards, but the execution of domestic and export products is not the same. “Good quality product exports, poor quality domestic sales, this This is not surprising."

In addition, due to the financial crisis, most export companies that cannot squeeze into the European and American export markets choose to find outlets by expanding their sales. The reporter learned from such companies that many companies have rapidly expanded sales through the price war in the domestic market and seized market share. However, the continuous reduction in the prices of these domestically-manufactured faucet products is not achieved through improved technologies or increased production efficiency. Instead, they are continuously controlling production costs strictly in terms of raw materials, fittings and production processes, resulting in a sharp decline in product quality and a vicious peer. Intense competition.

The price difference is as high as 100 times. It is reported that in the 1990s, the domestic faucet production market rapidly emerged, and American-owned brands started to invest and build factories in the Mainland. Initial production of taps in China began with OEM OEMs. At present, there are three major domestically recognized leading production areas, namely the Guangdong production area, the Zhejiang production area, and the Fujian production area.

Among them, the production areas of Guangdong are mainly export-oriented, because they are directly targeted at the high-end foreign markets. With reference to foreign standards, the starting point is relatively high, so the products have high quality and high prices. The Zhejiang market is mainly targeted at emerging markets such as the Middle East, South America, Africa, and Russia. It is mainly export-oriented, with low-end products and low prices. Fujian production areas are mostly based on domestic sales.

Even if the Chinese product market has a certain share in foreign countries, it still focuses on low-end products. The reporter learned from the industry that among the many quality problems in China's export products, heavy metals have become the “best awkward fate” of plumbing and plumbing fixtures in China.

At this year's Canton Fair, the sales director of a sanitary ware export company complained to this reporter that it was necessary to maintain the standard that heavy metals should not exceed the standards. The production cost has gradually increased, and the use of high-quality copper materials ten years ago has required companies to bear high raw material costs. In the sluggish market of export OEMs, it is “more difficult than ever”. The use of such inferior metal materials is more extensive.

"The same style, because of different materials, the cost price of export goods and domestic sales of goods has a wide disparity, hundreds of times the gap is also normal, and the export price is also higher." Mr. Zhao proposed that the export of foreign products more than the standard plating With two to three times the national standard, the cost of products is increased by more than 15%, taking into account the cost of removing lead, technology, multiple inspections, etc.

“The price of products exported to Europe is more than three times that of domestic products of the same quality level, and is more than a few hundred times higher than domestic products with lower quality levels.” Mr. Du emphasized that companies must continue to invest huge amounts of money, technology and Talents apply for certification and maintain certification. Therefore, Mr. Du has always denied that "export to domestic sales can maintain product quality," the statement, "The export of thousands of products will really sell hundreds of dollars in the Mainland?"

According to the sales director mentioned above, under the pressure of poor export market, the company uses the low production standard product profits to subsidize the loss of export orders in the process of export to domestic sales.

The reporter learned that after exporting products to the domestic market, exporting companies will continue to sell products with lower production standards as high-end products, and the prices are equal to the export prices. Through this method of export transfer to domestic sales, after reducing production costs, the company's profitability space has gradually increased, and even more profitable space has emerged than exports. As a result, this has attracted exporters to join domestic sales of these faucet products that appear to meet export standards.