[ppzhan Abstract] Recently, many household paper companies are promoting their products. If this is from a marketing point of view, occasional promotions can add new customers, but for a long time the promotion can not help people feel that they are digesting excess capacity and withdrawing funds. In the tissue paper market, a market battle for price wars as a “frontier battlefield†began to intensify.
Since July 2010, the paper industry has continued to slump, and in 2012 it entered the “cold winterâ€. The paper industry is in trouble, the overcapacity is hard to escape, the downstream demand in the industrial chain is sluggish, and the prices of raw materials are still high. Paper companies have to pay for the capacity that has been invested in the past few years, and the production capacity has been released in the industry. Downstream enterprises are struggling to support under the turbulent environment. The tissue paper, which has always been considered a very strong consumer product, has inevitably entered the "price war" period after two years of explosive development.
China's household paper market has great potential for development as a new force. Since 2012, the paper industry has started the “landing battle†in the tissue paper market. Major paper companies have targeted “guns†to the household paper market. Large capacity investment, new projects have been launched. The data shows that the amount of household paper that has been put into production and planned for production in China in 2009 was 333,000 tons, and it surged to 1.524 million tons in 2012.
After three quarters of this year, the paper industry, which continues to be sluggish, is still difficult to adjust at the bottom of the valley, and the household paper market is more and more turbulent. As the newly added capacity is put into the market, the expansion of enterprises is slowly decelerating. The phrase “the tissue paper industry is already under overcapacity†has been mentioned on different occasions by different industry insiders.
As a result, the inevitable encounters between the household paper manufacturers have been met, and the intensification of competition has been reflected in the price of the products. Since the first half of 2013, the household papers have collectively “pricesâ€. In this price reduction army, not only the second and third line brands, but also many first-line brands have joined, which was very rare in previous years.
In addition to the reasons for major manufacturers to adapt to market competition, the price of pulp imports continued to decline from the end of last year, with a cumulative decline of about 15%, which gave the paper manufacturers a lower price. In addition, summer is the traditional low season of consumer paper consumption. Enterprises choose low-price promotions to reduce finished product inventory, and then withdraw funds.
Although there is still a gap between the per capita consumption of paper in China and the economic growth rate in China, compared with the mature foreign paper market, China still has market space in the field of tissue paper, compared with the low tide period of the paper industry. Other paper types, daily life papers are still better, but in the next few years, China's tissue industry will face increasing pressure on overcapacity.
Since July 2010, the paper industry has continued to slump, and in 2012 it entered the “cold winterâ€. The paper industry is in trouble, the overcapacity is hard to escape, the downstream demand in the industrial chain is sluggish, and the prices of raw materials are still high. Paper companies have to pay for the capacity that has been invested in the past few years, and the production capacity has been released in the industry. Downstream enterprises are struggling to support under the turbulent environment. The tissue paper, which has always been considered a very strong consumer product, has inevitably entered the "price war" period after two years of explosive development.
China's household paper market has great potential for development as a new force. Since 2012, the paper industry has started the “landing battle†in the tissue paper market. Major paper companies have targeted “guns†to the household paper market. Large capacity investment, new projects have been launched. The data shows that the amount of household paper that has been put into production and planned for production in China in 2009 was 333,000 tons, and it surged to 1.524 million tons in 2012.
After three quarters of this year, the paper industry, which continues to be sluggish, is still difficult to adjust at the bottom of the valley, and the household paper market is more and more turbulent. As the newly added capacity is put into the market, the expansion of enterprises is slowly decelerating. The phrase “the tissue paper industry is already under overcapacity†has been mentioned on different occasions by different industry insiders.
As a result, the inevitable encounters between the household paper manufacturers have been met, and the intensification of competition has been reflected in the price of the products. Since the first half of 2013, the household papers have collectively “pricesâ€. In this price reduction army, not only the second and third line brands, but also many first-line brands have joined, which was very rare in previous years.
In addition to the reasons for major manufacturers to adapt to market competition, the price of pulp imports continued to decline from the end of last year, with a cumulative decline of about 15%, which gave the paper manufacturers a lower price. In addition, summer is the traditional low season of consumer paper consumption. Enterprises choose low-price promotions to reduce finished product inventory, and then withdraw funds.
Although there is still a gap between the per capita consumption of paper in China and the economic growth rate in China, compared with the mature foreign paper market, China still has market space in the field of tissue paper, compared with the low tide period of the paper industry. Other paper types, daily life papers are still better, but in the next few years, China's tissue industry will face increasing pressure on overcapacity.
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