Asian Producers: Equal Quality at One-Third the Pr
Beijing, China, January 4--Suppliers in mainland China, Taiwan and India feel their products now take on quality-conscious markets in Europe and North America.
Floor and wall tile suppliers from mainland China, India and Taiwan are confident their products have achieved quality equal to that of industry heavyweights in Italy and Spain. Ready to reach for the big time, suppliers of ceramic, wooden and PVC tiles in the three Asian production centers are now targeting their designs at midrange and high-end buyers in major markets, including Europe itself.
Ceramic is the most common material used in tile making. From the standpoint of volume, the mainland is the world's No. 1 producer of ceramic tiles, turning out 60 percent of global output. However, mainland suppliers have lagged far behind makers in Italy and Spain as far as technological capability and manufacturing processes. That is until now.
The rapid development of domestic support industries such as machinery and glazes has helped mainland tile makers improve their technology and manufacturing techniques. Some suppliers now claim they are capable of producing models that not only match but even exceed the quality of Europe-made tiles.
Mainland makers regard their national standards (GB/T4100.1 to 5) to be tougher than the corresponding European guidelines (EN159, 176 and 177), and they see this as having been another factor in the improvement of their product quality. The GB/T4110.1 standard for polished tiles, for instance, sets the average water absorption rate at less than 0.5 percent and requires less than 0.6 percent for individual tiles. In comparison, EN176 has less than 3 percent for average and less than 3.3 percent for individual.
Due to an abundant supply of raw materials and a strong labor pool in the mainland, suppliers there can offer foreign buyers an added bonus: prices that are about a third of tiles made in Europe.
As they have high manufacturing capacities, mainland tile suppliers can meet demand surges more easily than makers in rival production centers in Asia and around the world.
Among the suppliers interviewed for this report, New Zhongyuan Enterprise has an annual capacity of more than 100 million square meters of tiles and Guangdong New Pearl Group can produce 60 million square meters per year. These two are the largest makers in Guangdong province's Foshan, the mainland's leading ceramic tiles hub.
Top-tier makers in the mainland generally have 20 to 60 production lines manned by 2,500 to 10,000 workers and an annual capacity of 30 to 100 million square meters. Second-tier suppliers typically have an annual capacity of 10 to 30 million square meters and eight to 20 production lines.
As mainland suppliers have added improved quality to high output capability, progress has been so dramatic that even industry giants have noticed. Some top brands from Italy and Spain are placing OEM orders with mainland producers now.
Even though OEM orders will form the bulk of the mainland's exports for several years to come, more suppliers will be taking steps to promote in-house brands internationally. At present, only a few mainland tile brands are recognized in major overseas markets. These include the Cimic label from Shanghai Cimic Tile Co. Ltd and the Eagle brand from Eagle Brand Holdings Ltd.
In India, exports account for only 6 percent of ceramic tile output. The figure is just 10 percent in Taiwan. Even though export percentages are low, suppliers in these two areas emphasize quality designs and many are now targeting upmarket destinations such as Europe.
India-based Kajaria Ceramics Ltd already has a foothold in the United Kingdom and is making efforts to expand distribution there. The company has also set up a dealership in Africa and has started exporting to New Zealand. Kajaria sources clay from Rajasthan but imports the glazes from Italy and Spain.
