Looking at China's titanium dioxide manufacturing industry from Huawei（lower part）

There are many reasons for the large but not strong Chinese titanium dioxide industry. There are historical reasons and realistic factors, but more is the deviation of the company's own development direction. Recently, some people have summarized the reasons for the large but not strong Chinese titanium dioxide factory: First, high taxes and fees increase the burden on enterprises; second, interest rate hikes and frequent increases in reserve ratios lead to higher financing costs; third, labor costs. In the end, the appreciation of the renminbi has put pressure on enterprises. Then these led some entrepreneurs of titanium dioxide to turn to speculation, stocks, luxury goods, and antiques, which caused the “hollowing” of the company and the partial bubble of the economy.

However, Huawei has fought a way out under such conditions, and has beaten similar competitors in the West. Therefore, it is wrong to emphasize that the big environment is not good. In fact, China's titanium dioxide enterprises are big but not strong. In the final analysis, there are still many problems of themselves. I personally think that the most lack of Chinese titanium dioxide enterprises are the following three points.

One. Insufficient attention to products and research

From the perspective of funding, compared with "Huawei one-year R&D expenditure is 9.1% of revenue," most Chinese titanium dioxide companies have too little research funding, or there is no relevant research funding. A small number of titanium dioxide factory laboratories have been difficult to add new equipment for many years. Many experimental equipments are older than the experimental personnel, and even can only test a few basic indicators. There are no ways to test the indicators with a little difficulty.

From the system point of view, most of the Chinese titanium dioxide enterprises have no research team and only laboratory testers. If they want to add new products or improve product quality, they just headhunt everywhere. Using this simple and rude method to solve problems, therefore, quite a part of China's titanium dioxide factories have no conditions to improve the quality of titanium dioxide from hardware and software, and can only barely guarantee the quality of the existing titanium dioxide in the factory. As for improving the quality of the product, it basically stays in the state of a beautiful dream.

From the point of view of hardware facilities, at present, only a small number of domestic titanium dioxide factories and some companies engaged in research and development have more advanced laboratories and can carry out research work on some titanium dioxide research projects. As for the laboratories such as the 24-hour imitation season that are common in foreign titanium dioxide large groups, the Chinese titanium dioxide enterprises do not exist yet.

Two. Inadequate supply of raw materials

Unlike foreign titanium dioxide enterprises, which attach great importance to the source, most of the titanium dioxide enterprises in China are basically on the market with titanium concentrates and other raw materials. There is no long-term stable supply channel, and only a few enterprises have their own mine production bases. Basically, when the supply of titanium concentrate is stable, they purchase titanium concentrate for February or March. In the face of a large increase, a large number of purchases, resulting in the continued tightness of titanium concentrates, led to further increases in the price of titanium concentrates, which in turn prompted the vicious cycle of titanium dioxide to rise again. The more serious consequence is that the source of raw materials is different, which seriously affects the quality of the products, and the finished products fluctuate greatly. Even the goods of the same month, due to the problem of titanium concentrate, make the product performance abnormally large. Controlling quality from the source is not an empty talk.

In contrast, the Western Titanium Dioxide Group has been purchasing titanium concentrates overseas since the 1960s or has signed a long-term supply contract to ensure the stability of titanium dioxide quality from the source. In contrast, one is cost, and the other is the difference between a company's planning and corporate philosophy.

Three. Leadership management issues

Judging from the failure cases of Chinese titanium dioxide enterprises in the past decade, there is only one reason for the failed enterprises. To put it bluntly, the boss has a problem. Many of the titanium dioxide bosses who came from working, when they were born at the beginning of the year, also relied on their own blood to shake the company out. But after the world was laid down, there were many problems when you were in the business. There is no systematic learning of management knowledge, and management problems often arise. There is no way for employees to better promote the development of enterprises. As a successful titanium dioxide enterprise, in terms of enterprise team management, it should be more stressful. The more successful a company is, the more the boss needs to learn, the more he needs to improve the team's management ability. To have enough strength, you can stay longer in the boss position.

Therefore, more than 90% of the problems reflected by a titanium dioxide enterprise are the problems of the boss himself, not the team's problems. The development of any enterprise, including titanium dioxide enterprises, always has bottlenecks. Therefore, before encountering such problems, the business owner should prepare for the response in advance, change the thinking mode, enhance the management concept, and let the enterprise go further.

Summarize

Like many industries in China, the titanium dioxide industry ranks among the top in the world in terms of overall volume, but it does not have the international competitiveness at the high end of the industry chain. Strictly speaking, most of China's titanium dioxide enterprises still stay in the "production workshop" stage and cannot be called a complete titanium dioxide manufacturing industry. Most titanium dioxide enterprises are still in the low value-added areas of the industrial chain and have nothing to do with creativity and design.

The failure to form a complete industrial chain makes it difficult for Chinese titanium dioxide enterprises to fall into the embarrassing situation of “not making money” or “less making money.” Therefore, we must improve the industrial chain of titanium dioxide enterprises, and China can become a veritable "world factory" rather than a "middle and low-end processing plant."

The good news is that from the national decision-making level to most titanium dioxide companies, this challenge is being actively addressed. The pace of “competition reform” aimed at reducing the tax burden of SMEs has been accelerating, and the reforms to reduce administrative examination and approval items have also made substantial progress. For most titanium dioxide entrepreneurs, they are sticking to the industry and striving for product quality. Looking for new advantages in the research and development of new products, improving customer service, brand building, etc., is still their first choice. After all, speculation is not what they are good at.

In summary, for whatever reason, it is a fact that the proportion of R&D investment in titanium dioxide enterprises is low. It is still not easy to increase R&D investment. China's titanium dioxide is in the critical stage of becoming bigger and stronger. Without independent technology-driven growth, there will be no lasting profit dividend, and it will be difficult to have real brand influence and the right to speak on the industrial chain.