How To Seize Opportunities In The Booming Chinese Household Paper Market And To Deal With The Staged Contradictions Of “overcapacity”
At the same time as the total production capacity continues to increase, the concentration of China's household paper industry is also increasing. Dr. Cao Zhenlei pointed out that according to the current statistics, the “four people” in the traditional sense of life paper consisting of Hengan, Vinda, Jinhongye and Zhongshun Jierou have a total production capacity of about 35% of national household paper. The top 15 companies' total production capacity has also accounted for more than 50% of the national total.
Dr. Cao said that in the Chinese household paper market, Hengan, Vinda, Jinhongye, Zhongshun Jierou are all national brands, and the rest are basically regional brands. These two forces have developed in parallel for a long time. “Four People” started from the sale of FMCG and was driven by market factors to develop the production capacity of tissue paper to meet the sales needs of end products. In recent years, newcomers in the industry, including Lee & Man, Taisheng, Quanlin, Chenming, the sun, etc. all started from papermaking. Based on the advantages of fiber, steam, electricity and other production, they developed their own paper papers and gradually established their own tissue paper brands.
In China, the market share of self-owned brands of household paper manufacturers exceeds 85%, even reaching 90%, and there are few OEM products. However, in the European and American markets, the situation is completely different, and the latter holds a pivotal position. Dr. Cao Zhenlei analyzed that the entry of large-scale production enterprises represented by Lee & Man and Taisheng in the past two years may bring a new opportunity to OEM products, and may even bring long-term advantages to the pattern of China's tissue paper market. Revolutionary change. Although these companies have missed the best opportunity to cultivate their own brands into national brands, they can take a different approach and sell OEM paper products made from their base papers nationwide. Dr. Cao believes that this is also the focus of self-owned brand companies and the next step in research, rather than waiting for the latecomers to make their own brands bigger and stronger.
With the increasingly fierce competition in the domestic tissue market, enterprises have contributed new highlights to the industry in order to improve quality and efficiency.
One of the highlights of the obvious cost savings is the emergence of soft tissue and a wide range of applications. At present, soft pumping is one of the best household paper products with the highest efficiency and the highest market acceptance. This innovation allows companies to use the cost of producing rolls of paper to give consumers an approximation of the application experience of boxed paper, and also changes the consumption structure of China's tissue products.
The second bright spot is product diversification, and the emerging natural toilet paper is one of the diversified products, and other new products will appear in the future. Dr. Cao Zhenlei recalled that about five years ago, when the natural tissue paper appeared, it was mainly produced on a small round paper machine. The quality of the paper was not high. The biggest problem was the excessive vertical and horizontal tension. With the progress of the process, the upgrading of equipment, and more enterprises to invest in research and development and production, the color of domestic paper is more on the domestic high-speed paper machine or even imported large paper machine, the product quality has improved significantly. Consumers also benefit from the use of natural tissue paper is no longer just to buy a concept, but also enjoy the same consumer experience as bleached paper. The natural tissue paper is popular in the market, and the domestic tissue paper manufacturers realize that consumers have a strong sense of environmentally friendly products. Dr. Cao Zhenlei also called on international pulp suppliers to realize the reduction of pulp whiteness. The importance of it.
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