Chinese University of Politics and Law
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(Title) The continued decline in construction activity has negatively affected the domestic ceramic tile floor and wall the biennium 2008-2009, as reported on a sectoral study of the ICAR and notes that the industry exists intense competition from imported products from countries with low production costs.
noted that in recent years large companies in the industry trying to cope with the existing competition by creating their own outlets both local and regional level. The total size of the domestic market increased between 1996-2007, with average annual growth rate of 3.7%, while in 2008 decreased by 10.6% compared with 2007. Due to the significant decline in building activity in 2009, apparent consumption of the products in question has estimated that this year a further reduction (approximately 31%).
Regarding the structure of the domestic market and ceramic tile flooring Wall noted that over time the biggest piece of the market covered by the tile floor. Specifically, in 2008 estimated that their share has fluctuated in 78%, while wall tiles is estimated that accounted for 22%. The market in ceramic tiles are a high import penetration rate, which is estimated to over 90% of consumption in the period 2008-2009.
Reported that the ceramic tile industry operates a large number of companies dealing with imports and trade related products, as opposed to production, which is controlled by a few, large industries. Moreover, the degree of concentration in the industry is small, and market shares of even the largest companies, tend to be relatively low.
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