Global ceramic tile consumption is 12,818 million square meters in 2018, according to Acimac. Latin America has a market of 1,408 million square meters, it is the second region after Asia.

Within the region, Brazil is first with 769 million square meters,  according to Anfacer. (in 2019: 795m.m2)

Mexico has a market of 240 million square meters and the rest 399 million square meters.

Ceramic exports to Latin America

Brazil exports about 79 million square meters, 79% of its total exports of 101 million square meters (Anfacer – Acimac)

China, which is the world’s largest ceramic exporter (in 2018 it exported a total of 854 million m2) in the region exported to:

Peru: 21.2 million m2

Chile: 16.7 million m2

Colombia: 11 million m2

(according to Acimac)

Spain is the second largest exporter of ceramics in the world, exporting a total of 251.9 million Euros, which is equivalent to about 38 million square meters (average price of Spain is 6.6 Euro / m2)

Italy, the third largest ceramic exporter in the world, only exported about 4.3 million square meters, at an average of 13.9 Euro / m2) according to Confindustria Ceramica.

Top 10 ceramic factories in Latin America

Lamosa, the Mexican group, is the largest ceramic producer in the Latin American region, with 140 million square meters. It has plants in Mexico, Argentina, Peru and Colombia, with brands such as: Lamosa, Porcelanite, Firenze, San Lorenzo, Cordillera and Euro Cerámica.

Mohawk, the North American group, which is the world’s largest producer with 250 million square meters, is the second manufacturer in the region, with plants in Mexico (Daltile) and Brazil (Eliane). The largest amount of production is distributed outside this area, in the United States and Europe, its brands are: Daltile, Marazzi, Emilgroup, Ragno, Kai, etc.

Then there are:

Carmelo Fior, from Brazil: 77 million square meters

Grupo Fragnani, from Brazil: 66 million square meters

Vitromex, from Mexico: 55 million square meters

Celima Trebol, from Peru: 43 million square meters

Portobello of Brazil: 40 million square meters

Cedasa, from Brazil: 42 million square meters

Interceramic, from Mexico: 42 million square meters

Corona, from Colombia: 40 million square meters.

Other important factories in the region are: Duratex (Ceusa, Portinari), Pamesa, Elizabeth, Embramaco, Incepa, Alberdi, Villagres, Alfa, Graiman.

Brand building in Social Media

It is a dangerous strategy, because we do not control the content and interaction with the public can destroy the image of the brand. In a social environment, you are exposed to advertising from your competition or from other companies. You are not investing in your own URL (Internet domain). Communication with clients is best done through your own media.

All companies have complaints from their clients. Complaints must be handled privately, on your own website, on your own blog, on a phone.

Using social media to receive complaints can be dangerous for the brand. Social media is good for advertising (banner on Facebook, Instagram, etc. with a link to the website)

Successful Strategies with Own Media

Saint Gobain is number 2 in Ceramic Distribution in the World, and number 1 in Construction products in Europe.

In France, its distribution brands are: Décocéram, Point.P, La Plateforme du Batiment, Lapeyre and Cedeo. In 2016 Saint-Gobain launched Homly- you.com, his own social media.

Homly-you brings together more than 3,000 construction professionals throughout France. The consumer enters their requirement and can choose one of the specialists to work on their project. Homly-you.com generates genuine traffic, the moment the customer wants to remodel or fix their house, and then offers its products through its distribution network.

It is a strategic vision of the business: create traffic with your own sites.

Key Learning 

The ceramic industry is not very competitive on the Internet. Only Porcelanosa has electronic commerce. The rest have an institutional website and presence in social media (Facebook, Instagram, Pinterest, etc.)

A benchmarking or business comparison that was key in my learning was studying the tourism business, where competition is fierce.

Airlines, hotels, rent a car, etc. compete for the enormous tourism business. But they also joined: Google, Amazon, Facebook, Alibaba, Mercado Libre, Instagram, etc.

What business model did the leading tourism companies implement?

Booking.com, formerly called Priceline, with sales over 10 billion dollars and the second, Expedia, with sales over 9 billion dollars, implemented their own site and media strategy.

Two networks segmented into different objectives, by language, region and type of product that interact with each other, sending traffic from one own site to another of their own.

Another fundamental point of these two tourism giants is that they have leveraged themselves in strategic domains:

Priceline.com: booking.com and rentalcars.com

Expedia.com: hotels.com, hotel.com, hotels.com, Orlando.com, Bangkok.com, carrentals.com

Other examples of businesses leveraged in strategic domains are GEO portals. Country portals or cities portals such as:

India.com China.com Vegas.com Andalucia.com NewZeland.com Bangkok.com Spain.info Australia.com Korea.com Phuket.com Amsterdam.info USA.com Andalucia.org Barcelona.com LasVegas.com Egypt.com all of them They appear in the ranking of most visited sites of Geography in Alexa Ranking (Alexa.com) an Internet information company that belongs to Amazon.

Ferguson, the world’s leading plumbing and heating company with more than $ 22 billion in sales, acquired Build.com and Faucet.com. Domains with highly valued characteristics on the web: easy to remember, easy to write, inherent to the business, which dominates its position (it is a reference).

Home Depot, with more than $ 110.2 billion in sales, acquired Blinds.com. which sells blinds for more than 100 million dollars in the United States.

In the ceramic business there are too many brands, difficult to differentiate. Quality and technology are within the reach of many factories. On the Internet, some brands are difficult to write and remember. Others do not match the URL (domain). There are Facebook and other social media addresses that are apocryphal, too much confusion not to focus on the URL itself.

The marketing focus should be on the URL.

Porcelanato.com objetives

I am looking for a company that wants to develop exclusively and with the option to buy the domain porcelanato.com, to lead on the web. Be first in Latin America.

SWOT

Opportunities

Latin American market size.

the product is called porcelanato

desired product.

fastest growing segment in the ceramic industry

suitable for export

premium price and profitable

invest in your own medium

hundreds of brands (low URL recall of brands)

Threats

obstacles to foreign trade.

cheap product from Asia.

Strengths

easy to write and remember

establish credibility faster

it is an investment, an asset. It is not an expense

investors and partner capital prefer strategic domains

porcelanato.com is unique, it is an exclusive internet location

Weaknesses

time of development

Author:  Julio Sol

www.porcelanato.com      www.estrategia.com.ar