China International Ceramic & Bathroom Fair, Foshan
   ■ The 41st CeramBath (Oct. 18th-21st, 2024)
【Market Analysis】Unveiling the Ceramic and Sanitary Ware Markets in Southeast Asia
Time:2023.08.24 Views:
Thailand Concentration in the Market
The ceramic tile market in Thailand is considerably concentrated, with a few companies occupying the majority of the market share. The top three enterprises account for 70.2% of the total market share. Domestic companies lead the market, with SCG being the market leader, holding 33.0% and 31.7% of the market share in 2021 and 2020, respectively. SCG has 592 dealers, 7 trade retailers, 3 showrooms, and 104 company-owned stores in Thailand. Other leading companies include Dynasty Ceramics Public Company Ltd, The Union Mosaic Industry Public Co. Ltd., and The Royal Ceramic Industry PLC.
In the sanitary ware and accessories sector, a similar concentration exists in Thailand's market and is expected to continue in the future. The top three participants constitute 72.8% of the total market share. SCG's subsidiary, Siam Sanitary Ware, leads this market with a 32.8% market share in 2021, an increase of 1.1 percentage points from 2020's 31.7%. Competing companies include Lixil Thailand and Kohler Thailand. Siam Sanitary Ware's COTTO and SOSUCO brands cater to the mass market, while the Quil series targets the high-end market with features like automated sensing systems. TOTO from Japan and Kohler also provide international designs.
The primary challenge for newcomers is the fierce competition among existing market players. Consumers also demand products that align with the latest market trends while maintaining superior quality, necessitating innovation. To succeed, new entrants need to offer distinct value propositions, a challenge given the diverse existing product range. Established players in the tile or sanitary ware and accessories sector enjoy economies of scale and extensive distribution networks, making it time-consuming for newcomers to acquire these advantages.
Vietnam Concentration Amidst Small-Scale Providers
Vietnam's ceramic tile market is mainly led by local companies. The nation's abundant clay resources and low labor costs have attracted global companies to set up subsidiaries or acquire local tile manufacturers. For instance, Thailand's SCG Decor acquired Prime Group Co. Ltd. in 2012, which dominates Vietnam's ceramic tile market with a 26.4% market share in 2021. The market concentration is significant, with the top five companies accounting for 74.6% of total sales. Prime Group Co. Ltd. is a leading player in the ceramic tile market, holding a 26.4% market share in 2021.
Some smaller-scale companies also exist. Some companies have entered the market by introducing lesser-known but premium-priced European brands to cater to the high-end construction market. Others serve specific geographic locations. Brands like Thanh Ha and Thach Ban are prominent in northern Vietnam, while Kim Phong and Vitaly have recognition in the southern region. To compete with larger players, these brands focus on offering trendy patterns and designs.
In addition to competition among ceramic tile companies, market participants face external competition from alternative products like composite flooring, natural wood flooring, and synthetic resin. Ultimately, consumer preferences based on price, durability, design diversity, and color determine the choice of products. The prices for mid-range to low-end tiles range from 50,000 to 100,000 Vietnamese dong per square meter. For instance, Prime offers both mass-market (50,000 to 70,000 dong per square meter) and high-end (up to 400,000 to 500,000 dong per square meter) products.
Philippines Dominance by a Few Key Players
The ceramic tile, sanitary ware, and accessories markets in the Philippines are heavily influenced by several dominant companies, holding considerable shares. In the ceramic tile market, the top five companies occupy 59.2% of the total market share. The competition among the top three companies is fierce, given their closely matched market shares. Local manufacturer Mariwasa Siam Ceramics, Inc., a subsidiary of SCG Decor, holds a leading position with a 16.8% market share in 2021, up from 12.5% in 2020. Around 80% of tiles in the Philippines are imported and distributed by retailers like AllHome and Wilcon Depot. Mariwasa's brand has established a good reputation among Filipino consumers and offers reasonably priced high-quality products.
Prices vary significantly based on brand positioning, quality, and materials. Prices for low-end tiles range from 30 to 60 Philippine pesos per piece for 30x30 cm and 60x60 cm tiles, respectively. High-end tiles can cost up to 700-900 pesos per piece for 60x60 cm tiles. In the sanitary ware and accessories market, the top four companies account for 51.5% of the market share. These companies are mostly local, with one being a foreign company's subsidiary. Regulations for building materials, including tiles and sanitary ware, require certification by the Philippine government, raising the entry barrier.
Indonesia Moderate Concentration
The ceramic tile and sanitary ware markets in Indonesia are moderately concentrated. The top five ceramic tile companies constitute 72.2% of the total market share, followed by medium-scale companies and smaller players. Most leading companies are domestic. PT Muliakeramik Indahraya is the market leader in ceramic tiles, primarily targeting the mid-range market with an average price of 60,000 Indonesian rupiahs per square meter. The market leaders also include PT Platinum Ceramics Industry and PT Arwana Citramulia TBK.
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