In Jingdezhen, China, fine porcelain has been manufactured for 2,000 years. One would think that an industry that has lasted two millennia would have such a market dominance that few, if any, competitors could be a serious threat. However, this is not the case. For the porcelain manufacturers of Jingdezhen, competition has become so fierce that the innovators of the industry have now fallen by the wayside. This paper will discuss this informative case study. Case Study: Rediscovering Market Niches in a Traditional Industry
Table of Contents
Abstract
Introduction
Jiangdong Crystal-color Art and Crafts Co. Ltd
The Jingdezhen Region
Niche Markets
Challenges
Conclusion
Abstract
In Jingdezhen, China, fine porcelain has been manufactured for 2,000 years. One would think that an industry that has lasted two millennia would have such a market dominance that few, if any, competitors could be a serious threat. However, this is not the case. For the porcelain manufacturers of Jingdezhen, competition has become so fierce that the innovators of the industry have now fallen by the wayside. This paper will discuss this informative case study.
Case Study: Rediscovering Market Niches in a Traditional Industry
Introduction
In Jingdezhen, China, fine porcelain has been manufactured for 2,000 years. One would think that an industry that has lasted two millennia would have such a market dominance that few, if any, competitors could be a serious threat. However, this is not the case. For the porcelain manufacturers of Jingdezhen, competition has become so fierce that the innovators of the industry have now fallen by the wayside.
Competition has come at them from within their own home country and from outside China’s borders as well. Manufacturers of fine porcelain have become established in other providences around China. Companies in Europe, America, and other Asian countries such as: Japan, Taiwan and Vietnam have become established in the industry as well over the last 200 years. This increased competition, along with the dismantling of the state controlled conglomeration of porcelain manufactures in Jingdezhen, has caused the region to topple from their leadership position in the industry. These challenges are coupled with the decreased quality from the now private, small porcelain manufacturers, and the refusal to innovate their design processes, all of which have spelled disaster for the area’s porcelain economy.
Jiangdong Crystal-color Art and Crafts Co. Ltd
One company, Jiangdong Crystal-color Art and Crafts Co. Ltd. (JCAC) has managed to become successful. Their success is based on a variety of current factors. First and foremost is their innovative product. They were awarded a patent, by the state for their unique product, which included a firmness, resilience and fade resistance not commonly found in the industry, as well as the unique patterns that give the impression of embroidery on the piece. This patent allows them legal backing should someone try to infringe upon their design, as well as selling licensing rights to others (Tse, 2003, p. 1-2). This has assisted them by differentiating their product from all other porcelain manufactures, both at home and abroad.
In addition, JCAC was endorsed by the government and used to provide fine porcelain pieces that are used as gifts to visiting emissaries as well as for artistic pieces for state facilities (Tse, 2003, p. 2). In addition, they have sold their limited edition pieces overseas. The pricing of their pieces is set high to compliment their status as a fine piece of artwork. These factors have allowed JCAC to operate at much higher profit margins than the rest of the manufacturers in the region. Yet the question remains, are these current advantages enough to secure JCAC’s place in the industry? And, what can be done for the rest of the Jingdezhen manufacturers?
The Jingdezhen Region
In this case study, the majority of the region of Jingdezhen is of concern. As the region is the innovator of fine porcelain, known as China or Chinaware, they, as a region, have an invested stake in this scenario. This becomes even clearer when one considers that not only are the residents of Jingdezhen historically linked to the industry, but economically linked as well. More than half of the residents are employed in the porcelain industry (Tse, 2003, p. 4); that is a powerful economic force. In addition to the general population of Jingdezhen, JCAC also has a clear stake in this scenario as well.
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- Kimberly Wylie (Autor), 2004, Case Study: Rediscovering Market Niches in a Traditional Industry, Múnich, GRIN Verlag, https://www.grin.com/document/57790
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