03

The Combined Strength of Element

Italian Design X Made In China

Mr Liu: Like what you said before, Element is a product made by China with reference to Italian design. Such model has been adopted by many companies. What do you think is the key to doing this well? Do you think that our manufacturing capability is advanced enough in terms of the judgment, awareness and aesthetics of ceramic making?

Banson: I think we have made progress in those aspects. China develops robustly in recent decades, so as the ceramic industry. More importantly, we are seeking to make perfect ceramic products, which is evidenced by our unprecedented investment into equipments, raw materials and technologies. Such investment level indicates a willingness that drives our markets and gives us strong confidence to deliver something superior enough to rival Italy.

Moreover, Element's original Italian design are something very exclusive. We have partnered with Stylgraph for decades, during which our collaboration reaches far beyond from ceramic industry into other applications. We respect the most basic business values and the bottom line. At the same time, I also believe that any effort should be respected.

Mr Liu: What products do you work with Steve and what type of company Stylgraph is?

Banson: 80-90% of Element products are made in a partnership with Stylgraph. It's the second largest design company in the field of Italian ceramic tiles and wallpaper. 90% of our products are made with Italian design companies. Only 10% are made with Spanish design companies.

Mr Liu: Many people are happy to tell consumers that their products are designed in Italy, but they are quite reluctant to tell that they are made in China actually. When you talk to customers, you must tell them truthfully. Do you think this confidence or consumers' trust in you has been established?

Banson: Sure, that confidence is there. As China grow stronger, we have more powerful manufacturing capabilities and industrial design level. China is able to make superior products, but it needs to innovate its marketing to see and meet the demands of consumer groups. In my opinion, telling the truth to consumers is not in conflict with the bottom line of our business value. I think consumers prefer that what you provide to them is true, which is what I fully agree with.

Mr Liu: How would you explain such truth?

Banson: Consumers expect to know all about the quality of the products you sell to them. What you need to do is just tell them the real information as it is, like it's made in China, or Guangdong, or designed in Italy.   Telling fake information is never a good idea. After decades of develpment, China has become the world's second largest economy. It's not only about data. It's also about a system that indicates the contribution of all Chinese people made to the world by integrating global resources in the past decades. Made in China brings significant values to the entire world. We should be confident about the quality of what China has made and the humanity behind. That's why we proposed that we needed to make Element a respected Chinese brand. It’s such passion and intention that drive the consensus between Element and Hafary Sgp.

04

Make Product a Part of Space via Design

Ceramic Tiles as a Supporting Role

Mr Liu: If you want to combine the best Italian design with made in China, how to control the whole process from R & D and design to manufacturing? What measures or experience do you have?

Banson: First of all, we should be clear about our brand positioning, which I think is very important. Second, based on positioning, we show our respect to originality and work on the entire product portfolio. We will consider who the products are sold to, what space these products should be used in, how to convince consumers that these products is cost effective and deserves their money. So the entire product development process includes: develop our products based on aforementioned aspects, select suppliers, think about what specifications our design should be presented, what process should be used to deliver the finish, texture and layering effects, and how to create a living space that conforms to our brand positioning and satisfies consumers via design.

Mr Liu: Have you summed up any experience or requirements in the whole process?

Banson: We have requirements. The first is the product design concept. we must first of all respect nature. For example, we think about what color can be connected with natural color, with the comfort, safety and health of living; what texture can make people feel comfortable when they see it; what texture should be made; what functional value it provides, etc. These are based on comfort, health and safety. Upholding the people-centric principle is what we celebrate when design our products.

The second is about space concept. I think the current ceramic tile is only an auxiliary trim and a supporting role in the space, although many people say it is the material that dominates. We hope that the ceramic tile can echo with other materials in the space. By using blank-leaving art design and ceramics, we could connect all other materials and maximize the values of every space. Safety, comfort and health.

Both the product/space design will eventually go back to people-centered principle.

Mr Liu: You said ceramic tile today is just a supporting role for the overall space coordination. What changes do you think this trend has brought to the ceramic tile industry?

Banson: Earlier, we just center on ceramic tile itself. But right now, changes have taken place in commercial demands, consumers, lifestyle and channels for business values.

Ceramic tile is in a three-pronged transition, namely from production to superiority and aesthetics. It indicates a form of living and a choice of style for a certain social class. Now consumers want to bring out the best out of space value, not just its aesthetics. From the perspective of channels for business value acquisition,   the rise of so many advertising like TikTok and Xiaohongshu at current time is driven by consumers' purchasing activity which heavily relies on search, comment and sharing.   It's by comparison that decides their purchase behavior.

In the same way, you have to create a beautiful ceramic space to win the recognition and acceptance from consumers. In that way can they help advertise your products. Ceramic tile is a low-laying material with little attention. So how to promote such products via consumers? The answer must be to create a ceramic space that brings comfort to our consumers.

Mr Liu: What you just said means that we should use space to affect consumers' behavior. So what exactly do your outlets do?

Banson: Our new showroom--Trend Hub in the headquarters base could be used as an example. Literally it means the center of trends, or put it bluntly, a Trendy Home. Our showroom design and layout is in line with BDD we proposed. So what's it all about? It's all about experience of space ambience and living style. In Trend Hub, many real-life applications have been included. Especially in E-House at the second floor, we design a 280m2 realistic luxury apartment for elite customers. Our ceramic tiles get the best out of other mixed materials to create a coordinated and avant-garde space.

Mr Liu: When a single piece of ceramic tile becomes a supporting part of a modern space successfully, what will be the change in its own aesthetics, such as texture, color and so on?

Banson: We've been seeking to recreate the most cozy and beautiful things in our natural world onto ceramic surface using design and processing techniques. In terms of color pallette, low-saturation colors are still the mainstream, since a high saturation will lead to anxiety and cause harm to the eyes and mental health of dwellers especially those home dwellers. I believe comfort and peace rather than restlessness would be the choice for most residential and commercial areas.

Mr Liu: The third place.

Banson: Exactly. The second is about vein. Vein is something relatively softened and neutral. But that does not mean prominent vein are not needed. They should be an integrated part of the product design, rather than dominating the entire surface. The third is about texture. Texture includes visual perception, hand touch, foot tactility like anti-slip performance. All these are for the purpose of creating a secure, comfortable and healthy people-centered living place. Apart from selecting products and work on designs based   on these factors, we also need to consider how to match with other materials. For instance, ceramic tile is cold and tough in tactility while wood, wood-based wallpaper and coating are relatively softened. Lights of different color temperature will deliver various special lighting effects in space.

05

Element New headquarters Trend Hub

“1+1 > 2”Business Model

Mr Liu: You're almost done with the new headquarters. How would you pitch the new headquarters at designers and distributors?

Banson: We create Trend Hub to support our BDD strategic plan. We didn't directly show out our brand name of Element at the entrance. Trend Hub is a center of trends--an open platform for serving our partners, including customers, designers from media, design companies and design studios who celebrates creativity and original designs.

Mr Liu: How would you describe your business model in a few sentences to a distributors who want to work with you?

Banson: Currently we are adopting a business model of 1+1 ＞ 2. The first 1 refers to the core of a brand, namely elements of ceramic tile. The second 1 means new materials we focus on in days ahead. Our new headquarters, which includes a complete experience areas and is ready for open, is just an embodiment of Element business model. By assembling space elements in a multidimensional manner, we are committed to building an ideal, cozy and healthy residential/commercial place in the furtherance of maximizing the business values for customers.

Mr Liu: Does such business model work in outlets?

Banson: Some customers we cooperate with at our outlets have worked on this model. Many of them have done very well in terms of accessories. But new materials are still absent from they business operation.

Mr Liu: So your company provides the new materials for them.

Banson: Yes, we integrate high-quality material and resources via our own platform to empower our customers and allow them to increase their business values in next development stage.

06

Element's Proper Positioning

Four concepts to power its robust progress

Mr Liu: What's your take on the previous positioning and the current expansion? Which development stage do you think you are in now?

Banson: We’re glad that we have made appropriate deployment. The first proper step is to determine the market positioning of Element. 50% of our clients engage in imported Italian ceramic tiles. They have chosen to work with Element and establish exclusive outlets, which indicates they have recognized our brand positioning—a Chinese brand comparable to high-end imported tiles from Italy.

And years of partnership allow our clients to know more about Element. They have a bigger picture of Element's positioning, product portfolio, and brand culture as well as business model. Our new showroom Trend Hub situated in CCIH has identified a clearer direction for our future development and boosted our customers confidence about the future ahead of them. Our moves and strategies conform to the roadmap of brand. The growth of a brand is similar to that of human—they both have different stages to go.

Mr Liu: What do you mean by saying "different stages to go"?

Banson: At current stage, Element is still in its initial development and it’s well-prepared to move to another level. It has its own thinking ability and characters, which is the premises of our proposition to develop Element into a brand driven by design (BDD).

Mr Liu: This year, survival is a priority for many industries. In such circumstance, ceramic companies suffer obviously. So what do your think about the outlook of Element which navigates itself into the medium to high-end market during segmentation?

Banson: The industry as a whole remains uncertain indeed. But it will move towards a better result anyway. No breakthrough, no progression. We put forward four ethics based on the positioning and development of our own brand:

The first is cautious optimism. We keep following the general trend. The changes in market conditions will never interrupt our prudent and optimistic mentality. Such mindset helps you find a way out.

The second is robust progress. All actions we have taken over the past 3 or 4 years are the springboard for our step-forward at this stage. Therefore, we launched new strategies, like investment in Trend Hub and our entry into Chian Ceramic City.

The third is appropriate investment, which means we have to invest moderately, instead of nothing at all.

The fourth is delicacy management, or delicacy operation. It's integral to ceramic material business.

Mr Liu: In what aspects?

Banson: For instance, in the building of our operation process. We are associated with listed company and has a rigorous operating system. Our data can be accessed by our shareholders. As for the selection of suppliers, we have worked with an array of consulting agencies to fuel our brand, including the brand upgrade we are working on with HGH. When brand elevation is completed, both its image and managerial logics will be renewed and pushed onto front-line business running. And global supply chain will also be a strategically important link for us in years to come. We attach equal resources to both global and domestic market to coordinate our development.

Mr Liu: I see. Well, Banson, thanks for your detailed and professional introduction on Element. I believe the article compiled after the interview will provide a deeper insight for our audiences. That's all our interview today. Banson, it's nice to have you here again.