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"The stronger and weaker the weaker, the weaker" building materials situation
In the current building materials market, especially in the ceramic tile sector, a clear trend is emerging: "The stronger get stronger, and the weaker get weaker." This phenomenon is particularly evident in Beijing, where the ceramic tile industry has seen a sharp polarization in sales performance. The Beijing Ceramic Tiles Store stands out as one of the most specialized and largest in scale, serving as the headquarters for Panlong Ceramics. Located in the prime area of Shilihe Home Building Materials Street, between the 3rd and 4th rings in the southeast, it spans over 200,000 square meters and brings together more than 200 well-known domestic and international ceramic brands. Its unique "one-to-one real display" business model integrates engineering, retail, and wholesale, effectively meeting diverse consumer needs and enabling localized project purchases and customized orders.
In the broader building materials market, stores like Homes, Oriental Homes, B&Q, and Redstar have established themselves as leaders among high-end consumers in Beijing. These retailers are known for their strong brand presence and the "preemptive payout" principle, which has earned them a solid reputation among affluent customers. Their success has also set a benchmark for other building materials stores looking to replicate this model.
According to Li Wei, Marketing General Manager at Beijing Hayes Building Materials Co., Ltd., the first-tier brands—those with large companies and high-end positioning—are less affected by the current market fluctuations. These brands maintain a strong presence across multiple channels and continue to invest heavily in brand development. In contrast, the second-tier brands, which include mid-to-high-end players, face a growing gap in terms of brand strength and channel infrastructure.
Li Yong, General Manager of Beijing Jinzhuang Fangze International Home Furnishing Building Materials Chain Co., Ltd., noted that Beijing's cost pressure on ceramic tile management is significantly higher compared to other regions. Distributors here are also more powerful, and with the current economic climate, many mid-to-low-end brands are being pushed out by larger, more established players.
In terms of sales channels, brands that rely on designers and home improvement companies tend to be more stable, while those focused on retail and engineering through product shipments are experiencing varying degrees of impact.
To counter these challenges, some companies have started forming brand alliances, promoting strong groups within the building materials industry to target high-end markets such as villas and enhance brand recognition. Despite the competitive landscape, Beijing consumers still show a strong preference for branded products. While they often choose between branded and budget-friendly options, the market for highly personalized products remains limited. For individual brands aiming for the high-end segment, maintaining a premium image through strategic location selection, store design, staffing, and distribution is essential. It’s nearly impossible for latecomers to compete directly with established high-end brands in this space. As a result, many followers of high-end brands have shifted toward lower or mid-range segments to cater to more price-sensitive consumers. However, this shift makes it harder for them to influence fashion trends or lead the market in innovation.