In 1990s, total consumption of daily-use ceramics in Chinese market amounted to more than four billion pieces. And the figure reached 6.75 billion in 2003. Per-capita consumption rose from four pieces to five pieces. In 2020, domestic consumption, as predicted, will be up to 8.2 billion pieces. Along with the improvement of people's living standard, the upgrade of consumption concept and the accelerating of upgrade of consumer goods, gross demand for daily-use ceramics are expected to reach up to 12 billion pieces by 2020.

As for unit price of China-made daily-use ceramics exported, the average unit price in 2002-2004 stood at 0.65 dollar/kg, 0.67 dollar/kg and 0.72 dollar/kg respectively, a year-on-year rise of 3.18%, 3.08% and 6.99%. The upgrade of daily-use ceramic consumption structure will bring about huge development potentials for Chinese market.

In 2003-Mid 2006, the sales revenue by franchised distributors entrusted by Fujian Guanfu took a respective share of about 86.78%, 84.89%, 92.47% and 92.21% in prime operating revenue of the company. Making use of the rapid expansion of retail chain operation, in 2006, the company achieved prime operating revenue of RMB329 million from RMB141 million of 2003, up by 32.6%.

Composition of Main Operating Revenue

Main Operating Revenue and YoY Growth Rate, 2003-2006

China's Exportation of Daily-use Ceramics, 2001-2005

2 Business Operations 
2.1 Double Opportunities in China Daily-use Ceramics Industry
2.2 Differentiated Market Strategies, Brands and Technical Advantages
2.3 Strong Marketing Channels being Crucial to Company Rapid Expansion

3 "Big Household Wares + Distributors" Strategy
3.1 Output Expansion + Optimization of Product Structure
3.2 The Strategy of 'Big Household Wares'
3.3 Analysis of Wutian Industry Inc