The development of domestic plastic pipe market is very good

Recently, the reporter learned from the China Plastics Processing Industry Association that the current annual growth rate of China's plastic pipe market has reached 15%, ranking first in the world, which indicates that there is a huge room for growth in the domestic plastic pipe market. However, behind the rapid development of the plastic pipe market, there are also hidden concerns among companies: The market is a big cake, and companies want to get a piece of it, regardless of their size. It is almost “overnight.” Thousands of domestic production companies have emerged, but it is difficult. Bigger and stronger; dealers rolling over each other, some price-cutting blind fighters have caused vicious competition, some follow-up due to small scale can not profit, began to shoddy, affecting the normal development of the plastic pipe market. An expert from the China Plastics Processing Industry Association said: "Although companies are currently feeling huge market pressure, new opportunities are also contained in the market."

Demand

In recent years, the demand for domestic plastic pipe market continues to grow.

Compared with traditional metal pipes and cement pipes, plastic pipes have the advantages of light weight, corrosion resistance, comprehensive energy saving, convenient transportation and installation, and long service life. Therefore, the use of plastic pipes is becoming wider and wider. In the current national new construction and renovation and expansion project, 70% of construction drainage pipes are plastic pipes, 50% of construction rainwater pipes are plastic pipes, 10% of urban drainage pipes are plastic pipes, and 60% of building water supply, hot water supply and heating pipes are plastic. Pipes, urban water supply pipes (below DN400 mm) 50% use plastic pipes, villages and towns supply pipes 70% use plastic pipes, city gas pipes (middle and low pressure pipes) 20% use plastic pipes, wire jacket pipes 80% use plastic pipes. Today, the share of plastic pipes in various pipeline markets in the country has reached more than 50%.

What is even more exciting is that the future growth of the pipe market is also huge. According to the "Tenth Five-Year Plan for the National Chemical Building Materials Industry and the Outline for the 2010 Development Plan," the development goal for China's plastic pipe is that by 2005, the promotion and application of plastic pipes will be based on PVC-U and PE plastic pipes. Develop other plastic tubes. By 2010, 80% of construction drainage pipes will be plastic pipes, and 30% of plastic pipes for urban drainage pipes will be used in new construction and expansion projects throughout the country. Plastic pipe is used for building water supply, hot water supply, and heating pipe 75%. 70% of the tubes are plastic tubes, plastic tubes are used in 80% of villages and towns' water supply pipes, and 40% of city gas plastic tubes are used. 90% of wire jacket tubes are made of plastic tubes.

Business pain

According to the data from the China Plastics Processing Industry Association, China exported 6,8028.2 tons of plastic tubing in 2002, an increase of 28.87% year-on-year, with an export value of 1.01026 million US dollars, an increase of 30.83% over the same period of last year. Imports of plastic tubing were 2,6675.6 tons, an increase of 8.19% over the same period of last year. US$1,456.22 million, an increase of 19.05% over the same period of last year, and the amount of imports was greater than the value of exports. Similarly, the data shows that although the export volume of China's plastic pipe has increased significantly in 2004, the amount of imports still exceeds the export value, which is mainly due to the fact that China’s plastic pipe manufacturers’ production and export are mostly low-end products with low added value, product technology, and technology. Compared with similar imported products, there is a big gap between them, and product exports are limited to a few underdeveloped areas. Although the development of plastic pipes in China in the past two years is irresistible, there are few high-value-added plastic pipe products. At present, domestic plastic pipes and fittings are mostly general-purpose products, and high-end plastic pipe applications are only in the initial stage.

At present, the overall level of equipment of domestic pipe enterprises is relatively low and the technology is relatively backward. Although some enterprises have accelerated the pace of technological transformation and imported a large number of advanced equipment from abroad, the variety and quality of domestic plastic processing machinery have made remarkable progress. However, in terms of the entire industry, there are still problems of low equipment level and relatively backward technology. Companies rely on their own strength to study successful processing techniques and develop few plastic pipes, which has always maintained a significant gap with developed countries. Lack of innovation makes our products always in the low-end market, and product marketing is difficult to expand.

Some experts said that the current plastic pipe companies generally have the following problems: brand awareness is indifferent, combined with lower industry barriers to technology and capital barriers to entry, making the majority of domestic companies generally small scale; pipe companies a single marketing tool, higher marketing costs , Lack of publicity and planning, lack of research on target markets and market segments, and lack of necessary measures to respond to market changes; most companies have less consideration of technical content and product quality.

Due to the above reasons, when the competition becomes increasingly fierce, many companies fall into the predicament of channel conflicts, rising costs, falling revenues, constant customer complaints, and greatly reduced satisfaction.

Urgent priority

According to experts from the China Plastics Processing Industry Association, to solve the plight faced by plastic pipe enterprises, the industry continues to develop rapidly along a disciplined and orderly path. The top priority is to strengthen the standardization and rectification of the market order, and to require the industry. The company itself has embarked on the road to substantial improvement with technological innovation and quality first.

The standard of the market order depends on the relevant policies and regulations of the government departments, but it also depends on the coordination and organization of the industry itself. Only by strengthening the industry self-discipline can we form a good competitive relationship and gradually realize the survival of the fittest within the industry. Domestic manufacturers and distributors should gradually form a good and stable cooperative relationship during this integration process. Through specialized division of labor, a series of relationship consumers such as pre-sale, sales, and after-sales services in the three-tier market should be properly handled. The issue of vital interests has brought the market to a path of sound development. At the same time, the whole industry should strengthen the research and development of supporting pipe fittings production technology and special resin production technology, work hard on additives and raw materials, make a fuss about detection and control technologies, work hard on research and development of high-end products, adopt independent technological innovation, technological innovation, equipment improvement and autonomy. Designing, launching a batch of new products, new technologies, and new equipment with independent intellectual property rights, dare to clamour for Korean and European technologies, so that our rapid development can only be fundamentally ensured, so that China's plastic pipe industry can enter the fast track of healthy development. .

From the perspective of the company, powerful companies can use the current situation of many small companies to reorganize their resources through mergers and acquisitions in order to become bigger and stronger. Enterprises can also use the imbalance in the product structure of the current market to win PVC- U. Large-caliber water supply pipes and other market segments with high technological content, complicated technology, and relatively weak competition, carry out in-depth marketing; As some companies have not yet matured sales networks, powerful companies can seize the opportunity to quickly enter the market; Competition in the market has not yet risen to an integrated marketing competition model. The marketing warfare has not been as fierce as the household appliances and fast-moving consumer goods industries. This has provided an opportunity for the use of differentiated marketing methods to expand businesses.