Fujian Stone: Opening up a new front in the domestic market

Quanzhou stone industry has seen many new changes in 2010. Hui'an stone carving, which was originally focused on export, tried to enter the domestic market through various routes. In view of the growing prosperity of the domestic stone decoration market, the practice of the overseas “bag” mine, which was prevalent in the Quanzhou stone industry, has changed, and new investment jade mines have emerged. Trends; on the export side, with the increase in costs, Fujian tombstone exports increased by 20%. In addition, the two sides are still looking for solutions to the problems of currency settlement and "unfair claims" in Sino-Japanese stone trade.

City stone carving first tasted domestic sales
Mining new market space
Affected by the decline in foreign trade demand, Hui'an stone carving industry has actively explored the domestic market and achieved certain results relying on the development of domestic urban construction and real estate industry since last year.

Since the 1990s, with the rise of the European, American and Japanese markets, the export-oriented economy of Hui'an stone carving industry has further accelerated, and its products are exported to more than 30 countries and regions such as Japan, Europe, the United States and Southeast Asia. However, while the industry is developing, it is also facing various pressures. Since 2008, due to factors such as the appreciation of the renminbi, rising raw material prices and freight rates, and the international financial crisis, demand in overseas markets, especially the Japanese market, has fluctuated.

Jiang Xizong, the chief vice president of Quanzhou Stone Industry Chamber of Commerce and chairman of Quanzhou Haoxiang Stone Industry Co., Ltd., said in an interview with reporters that the price of Japanese tombstones was almost twice that of the present ten years ago, but later the supply of stone carving industry in China was greater than In the situation of seeking, the Japanese side took the opportunity to continuously reduce prices. In recent years, although the industry has collectively mentioned several prices, the extent has not kept pace with the exchange rate changes, and the export pressure of traditional stone carving products is heavy. While overseas orders have decreased and export rates have fallen, the domestic market is on the rise.

Zou Chuansheng, president of China Stone Industry Association, said that China's urbanization process is accelerating, providing a broad domestic market for the stone carving industry. "Despite the impact of the financial crisis, China has also introduced a number of policies to stimulate domestic demand, so there is reason to believe that the stone carving industry has a promising future for the domestic market," he said.

Real estate decorative stone carvings, urban garden stone carvings, cemetery tombstones and other fields have become the way for the stone carving industry to seek to break through the domestic market. According to Jiang Xizong, the company's new organization department opened up the market and set up more than 10 domestic sales outlets. There are not a few stone carving companies that have the same measures.

“Domestic urban development is changing with each passing day, opening up a vast city market. In addition, in recent years, the reform of the domestic funeral system and the promotion of the construction of the cemetery will bring huge market space. On the other hand, with the improvement of the domestic economic level The demand for tombstones in the market has also evolved from the ordinary, simple and elegant, and exquisite direction." Industry insiders said.

The reporter learned that many enterprises in Quanzhou have earlier involved in the domestic tombstone market, and have formed partnerships with many domestic cemetery builders, and tombstones in line with Chinese culture are also mass-produced.

Hui'an stone carving industry is learning from the experience of Nanan stone industry to enhance marketing efforts. The Hui'an Stone Carving Stone Industry Association has already begun to organize marketing training activities. The relevant parties are also planning to build a carving art exhibition center, which is a large-scale professional market integrating carving training, art development, production, display, trade and tourism.

Tombstone export price increase
Digestion costs upward pressure
On November 21 last year, the 6th Sino-Japanese Stone Consultation was held in Chongwu, Hui'an. At the meeting, the Fujian Provincial Stone Industry Association issued an initiative. Since this year, the price of tombstone exports has increased by about 20%. At the end of October last year, the Stone Stone Professional Committee of the Provincial Stone Industry Association conducted a survey on the tombstone trade and production and processing enterprises in the province. The price increase initiative was based on the survey data. Experts believe that although this measure is only implemented in the field of tombstone production, and the motivation behind it is more complicated, it will greatly boost confidence for foreign trade enterprises that are deeply affected by the exchange rate and feel the cost pressure.

According to the business research report from January to October of 2010, the Stone Industry Committee of the Provincial Stone Industry Association shows that there are about 780 tombstone trade, production and processing enterprises in Fujian Province, and the annual export value is about US$1.25 billion, mainly distributed in Fuzhou. Hui'an, Nan'an, Xiamen and Zhangzhou in Quanzhou. Affected by taxation, substantial increase in personnel wages, appreciation of the renminbi, rising prices of raw and auxiliary materials, and shortage of employees, tombstone export trade enterprises have been in trouble, and have shut down more than 120 enterprises.

According to the business research report provided by the Stonestone Professional Committee, the cost of stone processing has increased by 20.33% since last year, mainly due to: 5.53% increase in the burden of enterprises after the VAT transition; 30% increase in employee wages, accounting for 5.4% of the total cost; From the beginning of last year to October, the value added was 2.9%; the transportation cost of raw and auxiliary materials increased by 6.5%. According to reports, before the tombstone export, the method of “no refund” was adopted. From July 1, 2008, measures of 17% tax rebate and 13% tax rebate were adopted. In addition, the tombstone processing technology is strict, and it is also a labor-intensive industry. From the cost calculation, the wages account for about 18% of the cost (according to the investigation of the Stonestone Professional Committee, the wage ratio of each company is 15%-20%), but since last year the industry The wage increase was 34.8%.

According to industry insiders, with the rapid development of China's economy and the sound laws and regulations, the cost of processing costs will increase year by year with the development of social economy and consumption. Therefore, according to the law of market changes, accounting according to cost analysis, Enterprises must make reasonable price increases.

At the meeting, the stone industry in Fujian Province also recommended that the Sino-Japanese stone trade use RMB quotes and settle at the exchange rate on the day of the remittance. The Chinese believe that the use of renminbi pricing, companies do not need to use various exchange rate hedging tools, can effectively reduce settlement costs, greatly reduce exchange risk, and avoid losses caused by exchange rate fluctuations in trade.

Investing in overseas jade mines
Control decorative stone materials
From the analysis of the industry's own characteristics, stone production has no absolute technical advantage. The key point of enterprise profitability is the mastery and control of the resources of the blocks. By realizing the resources, the company can ensure the profitability of the company and maintain its competitiveness. The scarcity of resources determines who owns the quality of stone resources and who has the right to speak in this industry.

At present, Quanzhou City's annual export value of stone reaches more than one billion US dollars, the main products are sold to Japan, South Korea, the European Union, the United States, Southeast Asia and other countries and Taiwan. In order to further expand exports, Quanzhou Stone Industry actively explores new intensive development models. Signing a supply agreement with a foreign manufacturer, this is the expansion of most stone companies' overseas expansion. Up to now, a large number of enterprises have entered the stage of strategic development of joint venture mining. The usual practice is to obtain local mine development qualifications. Mingchao Stone Company cooperates with local Chinese in the Philippines to mine mines. Raw materials can be supplied not only to the company but also to wholesalers. Nanan Loyalty Stone has successfully settled in Tanzania and Kenya to exploit the rich mineral resources of the African continent. According to Gan Chuanhui, chairman of Fujian Lingyun Stone Industry Co., Ltd., it adopted a joint venture mining model, which accounted for more than 50% of the shares.

Different from the raw materials imported by Quanzhou Stone Enterprise for processing into large plates, the overseas mines controlled by Gan Chuanhui mainly produce jade, which can be used for the production of coffee table tops and processing and production of stone ornaments. According to Huang Kai, secretary-general of the Mine Committee of the National Federation of Industry and Commerce Stone Industry Chamber of Commerce, this is in line with the current trend of the stone industry to enter the domestic decoration industry. "With the development of domestic real estate business, stone began to be widely used in housing decoration, especially in the decoration of the house. In addition, the acceleration of urbanization and the reconstruction of small towns have brought huge development space for the stone decoration business." Conley Group Chairman Wang Cuixia said.

Expert analysis said that although the future real estate trend is unpredictable, as the supporting Quanzhou stone industry, if the research and development efforts on the decorative design, and greatly increase the added value of the product, there is still much to do.
 

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