XiaoTong Column · 2025-07-04

Risk Compass”Granite decorative pieces in China”

I. Industry Risk Analysis

(1) Policy Risk

The tightening of environmental protection policies restricts mine exploitation, driving up raw material costs. New regulations on dust emissions in the processing sector increase the pressure for equipment upgrades. Differences in local law – enforcement standards pose risks for entering regional markets, and cross – border trade faces green barriers, making exports more difficult. The dynamic adjustment of industry standards forces enterprises to frequently update their process certifications, and new energy substitution policies may reduce the growth space for the demand of traditional stone materials.

(2) Economic Risk

The current granite decorative parts industry faces multiple risks under economic cycle fluctuations. During an economic downturn, the growth rate of investment in real estate and infrastructure slows down, resulting in weak demand for high – end decorative materials. On the consumer side, the decoration budget is reduced, and consumers tend to choose low – cost alternatives (such as artificial stone), squeezing the market share of natural stone. The upstream mining and processing sectors are affected by environmental protection policies and fluctuations in energy prices, causing a continuous increase in raw material procurement costs. Small and medium – sized manufacturers have weak bargaining power, leading to a compression of profit margins. The risk of imbalance in the industry’s inventory cycle is intensifying. The backlog of inventory in the distributor channels causes pressure on the capital chain. At the same time, affected by the global economic recession forecast, the volume of export orders in the overseas market has declined significantly. Entrepreneurs need to be vigilant against the double – squeeze effect of shrinking market demand and rising rigid costs.

(3) Social Risk

The preference of the young consumer group has shifted towards artificial stone and new environmentally friendly materials, resulting in a generational gap in the market demand for granite decorative parts. Influenced by health concepts, middle – aged and elderly customers are worried about the radiation problem of natural stone, and their consumption confidence continues to weaken. The industry has long relied on traditional design styles and has difficulty attracting Generation Z. The solidified brand image exacerbates the market shrinkage. The pressure of environmental protection policies combined with the sustainable concept of young consumers forces up production costs, but price – sensitive customers are not willing to pay, creating a risk of value gap.

(4) Legal Risk

The risk of environmental protection penalties mainly lies in non – compliance with dust and wastewater emissions and the lack of mining licenses. The liability for safety production accidents stems from non – standard operation of cutting and processing equipment and the absence of protective measures. Labor disputes are often triggered by insufficient social insurance contributions or disputes over work – related injury compensation. Illegal mining may lead to fines for resource taxes and supply chain disruptions. The risk of patent infringement lawsuits comes from product design imitation or technology theft. The hidden danger of tax inspections involves loopholes in input invoice management and tax avoidance in cross – border transactions. Contract default disputes are often caused by vague quality acceptance standards or the lack of delivery delay clauses.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

Currently, entrepreneurial opportunities in the granite decorative parts industry focus on high – end customization and scenario – based applications. Provide lightweight slab customization solutions with precise matching of natural stone textures for high – end users such as villas and clubs. Integrate 3D cloud design tools to offer services of “online material selection + scenario simulation + one – click quotation”. At the same time, develop segmented functional products such as anti – seepage and antibacterial coatings for kitchen countertops and quick – installation modules for background walls. Seize the trend of stone replacing artificial boards in the upgrading of fine – decorated houses and the renovation of old houses. Build a content matrix of “stone aesthetics + construction on – site shooting” through short – video platforms, and establish regional warehousing centers to shorten the delivery cycle, meeting the compound needs of small and medium – sized customers for quality, quick response, and cost – effectiveness.

(2) Suggestions on Entrepreneurial Resources

Focus on the acquisition and integration of core resources. Entrepreneurs should first secure high – quality mine resources, establish stable supply channels through regional agency or joint – venture mining models, and cooperate with stone processing plants to share intelligent cutting equipment to reduce heavy – asset investment. Build a platform for an alliance of designers to obtain resources for high – end decoration projects. Use short – video live – streaming to showcase granite processing technologies and scenario application cases, and connect with engineering contractors and real – estate centralized procurement channels. Simultaneously, connect with local government support policies for the building materials industry, apply for special subsidies for environmental protection equipment and green building material certifications, and cooperate with industry associations to formulate regional product standards to form a differentiated competitive barrier.

(3) Suggestions on Entrepreneurial Teams

Entrepreneurial teams in the granite decorative parts industry should be built around three core capabilities: technology, design, and market. Members with experience in stone processing, a background in architectural decoration design, and resources in building materials sales channels should be selected to form a complementary structure. The founder should have both industry resource integration ability and production management experience. In the initial stage, reserve 20% of the equity for recruiting R & D personnel proficient in new environmental protection technologies or market talents with engineering bidding experience. Establish a regular rotation system in the factory to ensure the coordination between the design and production ends. Bind core business personnel through a dual – incentive mechanism of sales commissions and project dividends. To address the common problem of product homogenization in the industry, it is recommended that the team include at least one young member proficient in digital marketing to develop new media channels. At the same time, establish a technical advisor cooperation mechanism with local industry associations to make up for the professional shortcomings of the initial team.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the granite decorative parts industry should focus on controlling the risk of raw material price fluctuations. Sign long – term supply agreements with mines and establish more than three backup suppliers. In terms of environmental protection, invest in dust removal and sewage treatment equipment in advance to meet the national “Emission Standard of Pollutants for Stone Processing”. For legal risks, strictly review the compliance of stone mining and commission a third – party to conduct a quarterly review of the legality of the mine. In the market, establish a product grading system (engineering – grade/home – decoration – grade). Adopt the “advance payment + progress payment” model for real – estate centralized procurement customers and the deposit system for retail customers. In terms of quality control, conduct a full inspection of raw materials upon arrival and implement laser QR – code traceability for finished products. For inventory management, adopt the “production based on sales + safety stock” model, and control the inventory of common colors within the output value of two months. In terms of design innovation, reserve at least five patented shapes and establish a commission – sharing cooperation with interior design companies. For cash – flow management, ensure that the accounts – receivable cycle does not exceed 60 days and prepare sufficient working capital for the off – season six months in advance.

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