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Competitive Edge of Shandong to Make Regional Brands

Number of visits: Date:2017-11-24 11:13

On 15th October, the northern cities were marking the start of winter heating season, which indicated that Beijing-Tianjin-Hebei region will enforce air pollution control measures.

Many ceramic companies in Hebei and Linyi and Shandong started to stop or limit their production. As for Shandong production base, it faced huge pressure from strategy of ''retreating from urban areas, shifting to industrial parks'' and Environmental policy this year.

However, it still showed great potential for growth and advantage for nurturing regional brands.

Consumers and dealers pay much attention to delivery time and shipping costs. They want to use low shipping costs to get products rapidly. Anyway, it is not easy to achieve both.

Mr. Chen, a distributor who has run his business in Beijing for many years. At present, he sells the ceramic tiles of several brands. Some brands are from Foshan, while others are from Shandong.

In his opinion, the ceramic tiles from Foshan can help him attract consumers almost effortlessly. Besides, they can help him get some orders of home decoration. Nevertheless, the ceramic tiles from Shandong enable him to win the orders of construction projects, which allow him to sell more ceramic tiles.

He said , he once cooperated with the men of a construction project. They were quite hungry for ceramic tiles and had strict requirements for delivery time and shipping costs. Therefore, he made a detailed research first. 

He found that, if we send ceramic tiles from Foshan, we need to prepare relatively large quantities so as to lower shipping costs. But extended delivery caused by the far distance is still inevitable. However, if we send ceramic tiles from Shandong, then we can avoid the above problems. Zibo is less than 500 kilometers from Beijing, and Linyi is also less then 650 kilometers from Beijing. Such a short distance allows the dealers to send out fresh orders immediately so as to ensure short delivery time.

Indeed, in terms of costs of delivery time, Shandong has an obvious competitive advantage. Its ceramic tiles can serve the building materials markets of Beijing, Tianjin, Hebei, etc. 

Compared with Foshan production base, Shandong, Fujian, Hebei and Sichuan production base are not very powerful. The first reason is that ceramic brands in these regions are not famous enough. And the other reason is that the quality of their ceramic tiles can not be well guaranteed. However, with the help of updated technology, Shandong production base has gradually gained the ability to produce good ceramic tiles. In terms of customized and personalized production, there is no question that Shandong production base has more advantages than other production bases. 

Mr. Wu, a ceramic businessman, is an agent for Foshan ceramic brand and a boss of his own brand. He said, he will select some fine samples abroad or cooperated with design companies to develop products. Before he sells products to the markets, he will make the counter samples first. If there is a huge demand of these samples, then he will go to Shandong production base and find a suitable factory to make OEM to meet the customers’ specific needs. Such kind of practice is very usual in Beijing as Beijing runs a lot of construction projects. 

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