Demand is rigid and defensive. Tissue paper is a daily necessities and a fast-moving consumer product. The economic downturn will not affect people’s daily demand for tissue paper too much. Therefore, the tissue paper industry is in an economic downturn. The defense is very outstanding.
Both domestic demand growth and consumption upgrade are both driven by a huge room for growth
China's huge domestic demand market and escalating consumption trends are the two carriages driving the growth of demand for tissue paper. In 2010, my country's per capita consumption of household paper still has not reached the world average level, and there is huge room for growth.
The role of policy and market guidance, the "Matthew effect" appears
In July 2011, the Ministry of Industry and Information Technology announced that the backward production capacity of the paper industry accounted for nearly 10% of the total production capacity. With rising labor costs, changes in environmental protection policies in the Mainland and fluctuations in raw material prices, it is becoming increasingly difficult for small companies to survive in the market; at the same time, large companies are also taking this opportunity to expand rapidly to share market growth. The "Matthew effect" of "the strong get stronger, the weak overpower the weak" appears.
The cost of raw materials has fallen, and the gross profit margin is expected to rise
Recently, pulp prices have fallen by 25% from a high level, and as a terminal consumer product, the price of household paper has a certain stickiness, so the gross profit margin is expected to be further expanded.
Advantageous companies climb the "smile curve" to further improve their profitability
Tissue paper companies adopt high-end product routes or implement differentiated marketing strategies by improving technology, climbing the smiling curve, increasing the added value of products, and ensuring gross profit margins.