Xie Yuerong see bathroom industry

On December 3, 2012, the annual meeting of the Sanitaryware Professional Committee under the All-China Federation of Industry and Commerce Furniture Decoration Industry Chamber of Commerce was held at the Fortune Hotel in Shunde, Foshan, Guangdong. Representatives from the All-China Federation of Industry and Commerce, the Executive Chairman of the Federation of Industry and Commerce Zhang Chuanxi, officials from the Ministry of Housing and Urban-Rural Development, members of the Sanitaryware Professional Committee, and leading figures from various sanitaryware enterprises were in attendance. During the roundtable discussion, Xie Yuerong, President of the Sanitaryware Committee, emphasized the need for standardization within the industry, particularly regarding production planning, cost management, and the proportion of advertising expenditures. He pointed out that many companies currently face overcapacity issues due to aggressive expansion plans, leading to excessive production based on stock levels. When market conditions are less favorable, these stockpiles can become problematic, resulting in capital tied up in depreciating inventories. Consequently, businesses are resorting to various promotional strategies, including price cuts, to boost sales. Xie Yuerong remarked that while promotional activities may provide short-term relief, they often result in reduced profit margins and even losses for participants. He warned that frequent discounting makes it challenging to restore prices to sustainable levels. He urged his peers in the industry to focus on maintaining the collective reputation of the sector, even amidst competition. "Even though we compete, we must ensure our actions do not harm others or the broader industry's image." Regarding cost management, Xie Yuerong cautioned against compromising product quality to cut expenses. He stressed that maintaining brand integrity is crucial for long-term success. He highlighted that the perception of Chinese sanitaryware products being inferior stems partly from the tarnished reputation of certain brands. Xie Yuerong appealed for honesty in dealings with both customers and employees, advocating for an environment where trust and quality prevail. In recent years, many sanitaryware companies have invested heavily in advertising campaigns, saturating platforms like CCTV with brand endorsements and media coverage. While some argue that extensive advertising helps build brand recognition quickly, Xie Yuerong argued that such spending must be carefully controlled. He noted that excessive advertising can inflate costs, either through increased product prices or operational expenses. Therefore, he recommended setting reasonable limits on advertising budgets to ensure sustainable growth for the industry. The discussions underscored the importance of balancing innovation, quality, and responsible business practices to foster a thriving future for the sanitaryware sector.

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