New Zhongyuan’s marketing company in Dubai and the 900-square-meter showroom will open in March to replace all Middle East operations of the former export unit. Huo Jinxiang, general manager of the company's export business department, said: "If the Dubai trip is successful, we will quickly replicate the Dubai model to Africa, South America and Russia."

Large Exports but Low Profits According to statistics from the China Ceramic Industry Association, as of the end of November 2010, Foshan ceramics exports have reached US$2.2 billion, an increase of 36% year-on-year. Among them, the Middle East has been China's largest export market status for two consecutive years since 2008. In 2009, Guangdong Ceramics exported 8.1 billion U.S. dollars to the Middle East, which continued to grow by 22.2% on the basis of a dramatic increase of 41.2% in 2008, and exported 92.43 million U.S. dollars more than the EU, 26 times more than in the same period of 2008.

However, the growth in the value of exports in the Middle East is based on a larger export volume. According to the monthly statistics of the Ministry of Commerce's export statistics, although the Middle East market still maintained the number one from January to July 2010, the export value began to shrink and was lower than the EU. Huo Jinxiang said, "The Middle East market accounts for 10% of the company, but product quality is relatively low and profits are not high."

In fact, the EU market is not as good as the Middle East market. The phenomenon of falling prices has started to appear in 2009. It is understood that in 2009 the export volume of Guangdong tiles to Germany, the Czech Republic, and Sweden increased by 47.5%, 38.8%, and 31.1%, respectively, while the average export price fell by 6.5%, 12%, and 23.4%, respectively.

In the context of rising costs and the appreciation of the government, the low price strategy adopted by Tao Enterprise is the main reason for this situation. Not only did it damage the brand image, it also induced a series of anti-dumping cases in 2010, eventually leading ceramic companies to a low-profit dead end.

Traveling to Dubai for brand promotion seeks a way out. Xinghui and Asgard have chosen to use international design, technology, and channels of strategic investors to evade trade risks, while Xinzhongyuan has chosen to personally expand. Huo Jinxiang said that in order to enhance the added value, the company has taken a transition to a medium-to-high end line. “But we must improve our product image and we cannot rely on local dealers. We can only promote the brand ourselves.” In the past, Xinzhongyuan, like many other companies, also passed its export business. The Ministry sold the ceramics to distributors on all continents and then sold them to local consumers. This model saves time and effort, but it also sets the image of Xinzhongyuan in the local area. Huo Jinxiang told reporters that due to the large population of foreign residents in the Middle East and the rental of many houses, low-end products were used. At that time, Xinzhongyuan entered the Middle East market with low-end products. The brand image has been set and the profits have been getting lower and lower. The company is now undergoing transformation and upgrading, but local dealers still only recognize cheap goods, and the mid- to high-end market cannot open up the situation.

Since June of last year, New Horizons President Huo Lianquan visited the Middle East. After six months of planning, he decided to move the Middle East Export Division to Dubai, set up an independent sales company, and set up a 900 square meter exhibition hall to promote brand image. . After opening, there will be more than 10 people working in Dubai.

Huo Jinxiang said that although there are many projects in Dubai after the financial crisis, this does not affect the ceramic market throughout the Middle East. “We chose Dubai to use its policy as a tax-free port to establish a strong base for the Middle East and even Africa.” Understand that Dubai has the Jebel Ali Free Trade Zone. The region has formed the largest professional market in the Middle East including hardware, building materials, textiles, garments and auto parts. All companies in the region are exempted from all taxes and fees. , allow 100% free exchange of funds, etc. Domestic enterprises can rapidly expand the market in countries and regions such as the Middle East, Russia and India through the enormous radiation power of the free trade zone.

Huo Jinxiang said that there is no ceramic company in the country to establish a company in Dubai, nor did it establish such a large exhibition hall. New China Resources is the first one. If the market responds well, the group will quickly copy this model to other places. Lan Weibing, director of the Foshan Ceramics Office of the China Ceramic Industry Association, said that using a third country or region as an export channel is gradually becoming a battle against rising costs, increasing the value of ***, and increasing global anti-dumping barriers to open up the international market.