Has anyone studied about the threat of imports?
In a concall 3-4 years back, the management said that exports are difficult because sanitaryware are bulky items and prone to scratches etc. This hypothesis of the management doesnt seem to be true and hence the question
Asia exports about 60% of the worlds sanitaryware, with the top 3 exporters being China, India and Thailand. China exported 80% of Asias exports in 2015 and 45% of the worlds(1.33 million tonnes)
Top 4 global exporters:
China
Mexico
Turkey
India
NAFTA was the largest importer, followed by Asia…
At first glance, it would seem stupid to suggest that there can be a threat of import to one of the largest exporters, especially for CERA which is strong in tier 2 and tier 3 markets (meaning an even smaller threat). Add to it to the the present negative sentiment against the biggest import threat (China) but would love to hear if someone has done some research on this.
Specifically, how much does the transportation cost add to the cost of the product.
Another question is, will the distributors in Tier 3 towns switch to a different supplier if they were offered higher commissions? What’s stopping distributors from switching?
If anyone has done some research on it, could you please share?