The competition in the industry is staged. Now the indu […]
The competition in the industry is staged. Now the industry has a very high growth rate. Enterprises are now competing only to "catch the speed of customers."
"The price of non-woven fabrics has been rising every day recently. We can only determine the price within three days when we make non-woven bags and customers negotiate prices." Cheng Hai, general manager of Wuhan Xinqi Non-woven Products Packaging Co., Ltd., told reporters.
The rise in demand for environmentally friendly shopping bags quickly spread to the upstream nonwovens industry
The "Plastic Limitation Order" has brought about important changes in the lives of ordinary people and brought unexpected business opportunities to some industries. While plastic shopping bags are gradually withdrawing from the market, many companies have already launched non-woven fabric production lines, and environmentally friendly shopping bags are forming a huge market space. The demand for non-woven fabrics by companies that produce environmentally friendly shopping bags has risen sharply, and the production and supply capacity cannot be immediately matched, leading to a surge in the price of upstream nonwoven disposable wipes.
According to reports, the price of non-woven fabrics has risen from 14,000 yuan per ton in February to 18,000 yuan per ton now. Moreover, due to the recent fire in Maoming Petrochemical in Guangdong, the raw materials for the production of non-woven fabrics have tightened, which has accelerated non-woven fabrics. The price of cloth has soared, rising by 7% to 8% every day.
The analysis pointed out that with the implementation of the "plastic restriction order", the sales volume of non-woven fabric orders nationwide has begun to increase. The total output of non-woven fabrics in the first quarter reached 161,800 tons, an increase of 34.09% over the same period of the previous year. With the increase in market demand, the production and sales of non-woven fabrics are booming, and some enterprises have arranged production until August and September.
Obtaining a "first-come-first-served" competitive advantage
Opportunities favor prepared minds, and early foreseen companies have now begun to try to meet the demand in short supply.
Environmentally friendly shopping bags will be strongly supported by the government, and as mainstream media continue to report, the acceptability in consumers' minds will gradually increase. In some developed countries, such as Australia, it has long banned the production of any non-degradable plastic bags, replaced by non-woven shopping bags. Developing countries often have to follow the path of developed countries. China is a developing country, so there is market potential here.
And the extension of the bag is very wide, it can be used as a shopping bag, and can also produce packaging bags for the clothing and wine industry. So that the sales can be played in a wider range
"Seize the speed of customers" becomes the focus of competition
The "plastic restriction order" has brought market space to the upstream and downstream enterprises of the nonwoven fabric industry, and also put forward higher requirements for enterprises to cope with the complex and changing environment.
Some insiders have analyzed that the "plastic restriction order" has made the environmentally friendly non-woven bag industry enter a super-speed growth period, but for individual companies in the industry, the entry barrier for non-woven bags is very low, and most companies purchase non-woven bags. Spinning to process, the added value is not high. The increase in existing competitors and potential competitors in the industry will gradually offset the profit margins brought by the industry growth.