High Transport Costs Strong Brand Zone Restrictions

As with tiles, ceramic Binder transportation costs total cost ratio is very high. Transport costs are a big problem, said Zhong Lanlan, because the cost is transparent, if plus shipping less than 200 Yuan a tonne, may be competitive, but transport costs had reached more than 500 there is no competition. For example, plant in Shanghai to Wuhan required shipping costs about 400 Yuan. Ceramic bonding agent are road transport and therefore transport costs often becomes an important factor in the development of enterprises. Many manufacturers will not solve this problem became a regional brand, so regional restrictions very strong domestic brand, since its price was not high, pull to compete with local companies in the field are not competitive at all.