The impact of market competition on the quality and price of plastic wood co-extruded flooring-WPC decking

The impact of market competition on the quality and price of plastic wood co-extruded flooring-WPC decking.

As we all know, plastic wood co-extruded flooring(Decking in WPC) is developed on the basis of the original ordinary plastic wood flooring. Since ordinary plastic wood flooring has been developed for nearly 20 years, its technology is relatively common and the threshold is relatively low-end, resulting in fierce market competition. , the price war is very fierce. Although some manufacturers have a large number of orders, they still make meager profits. Therefore, the more high-end and more beautiful plastic wood co-extruded flooring is favored by manufacturers with sophisticated technology, and they have invested in development in the hope of finding a replacement. Products earn higher profits.

From the beginning, few manufacturers could make such products as wood-plastic co-extruded flooring(Decking in WPC). Now, many manufacturers can do this. After three or four years, the price of plastic-wood co-extruded flooring has also been falling rapidly. With the gradual maturity and standardization of co-extruded wood technology, as well as the maturity of co-extruded wood equipment, molds, leather, post-processing equipment and other supplier technologies, co-extruded wood flooring also has a look similar to ordinary wood plastic flooring. development trend. That is to say, after mastering the key technology of plastic wood co-extrusion flooring(Decking in WPC), manufacturers have started to save costs in order to improve their market competitiveness and gain a larger market share. Some have even started price wars, and what supports the maintenance of price wars is nothing more than Two o’clock.

The first point is to keep product quality unchanged, reduce their gross profit, and some even rely on their own strong financial strength to promote the market with money, in order to gain a large number of market customers and orders in a short period of time. With large-scale orders, This can achieve better scale effects and improvements in efficiency and production technology, thus promoting cost reduction and gross profit improvement.

The second point is to keep the gross profit of the product unchanged. Due to the decline in sales price, the production cost of the product must be reduced, such as moving to a more remote location to save rent and labor expenses, reducing the process flow, reducing the cost of raw material formulations, and reducing profile costs. Post-processing costs, increasing the production speed of profiles, etc., but these measures are often only slightly different from reducing quality. If the control is not good, it will lead to a serious decline in product quality and become inferior products.

The editor believes that in these product industries with full market competition, each product will go through a cycle similar to this, that is, at the beginning, few people know about it and few people produce it. At this stage, the price can be significantly higher than the actual cost. As more people pour in, this stage is broken, and the product price and gross profit gradually enter the normal stage. This stage should be a period of rapid development of the market. Because the gross profit is reasonable, manufacturers have good expectations for long-term development, and most product quality is relatively guaranteed.

As market competition further intensifies, some manufacturers will inevitably emerge that sacrifice quality and lower product prices to gain market share. This stage is basically a stable period. When price wars become ubiquitous and the market becomes very difficult to operate, those with strength and technology have turned to the development and production of new generation products or other categories of products. Although the original old products are still being produced, they are no longer the most important. Products have been produced, while low-quality manufacturers without technology and strength have reached a critical point and closed down one after another under the repeated squeeze of the market.

Although this is generally the experience, Woodedetech still hopes to make good product quality and leave a reputation for himself. Even if the product is not good and the market customers leave, the old reputation will still be there when he switches to other products. , maybe market customers will come back one after another.