2018 Plastic Flooring Industry Status Analysis and Forecast
In 2017, affected by the regulation of the upstream real estate industry, the oversupply of the flooring materials industry and PVC flooring materials are facing severe market challenges. In 2018, with the relaxation of real estate control policies, the development prospects of plastic flooring still have great potential.
Coexistence of crisis and challenge
From 2003 to 2014, China's fixed-asset investment mainly went to the manufacturing, real estate, and real estate downstream industries, such as steel, cement, and construction materials, which led to a rapid increase in production capacity in these industries. After the financial crisis, although market demand was sluggish, investment still maintained rapid growth, eventually leading to over-investment and overcapacity in the industry began to appear prominent. With the increase in the price of raw materials in 2016, the production costs of enterprises have increased, and the profit margins have become thinner. The crisis is even more pronounced.
Industry status and analysis
The PVC coil industry is concentrated in Jiangsu, Shanghai, Zhejiang, Hebei, and Beijing. The promotion is mainly based on exhibitions, with the regional promotion associations, with little effort and little influence. At present, the PVC coil industry still faces tremendous pressure in two aspects. On the one hand, it comes from the high national environmental standards and people's high requirements for product environmental protection; on the other hand, it comes from cost pressures. There are many brands in the PVC coil market, and the competitive pressures As a result, the profit margin is very thin. With the increase in raw material prices in the past two years, the production cost of products has also increased.
[PVC Sheets] SPC and WPC are representative products of PVC sheets, each with its own merits.
SPC: In China, the fastest growing SPC production is in Jiangsu, Zhejiang, Shandong and other provinces. In foreign countries, SPC is superior to laminate flooring in terms of product performance, and its price is close to that of reinforced wood flooring. It has emerged as a new force and quickly occupied the North American market and has become the main recommended material for the rapidly rising building materials industry.
WPC: The rapid growth of WPC is due to its advantages of anti-slip, wear-resistance, durability, and non-deformation. It also adds a snap-in function and is easy to install. Therefore, WPC's floor growth momentum is also very rapid. Through the status quo, we can see that the future of plastic flooring can still be expected.
Although the market is facing some problems and challenges, but the construction of PVC coil floor is convenient, the performance is stronger, and it can be used in a large area. The wide application range meets the high requirements of the market, and the potential in the Chinese market is still very large.
[PVC sheet material]
1. PVC sheet has not been popularized in the home improvement field so far. The reason for this is that the company has not attached importance to the promotion of home improvement. Although the current domestic first-tier cities have strict control over real estate and the transaction rate has declined, real estate in second- and third-tier cities will continue to grow strongly under control. This will be a market with huge potential.
2. In addition to regional breakthroughs, China's real estate hardcover and rental housing has risen. Vanke, Evergrande, Country Garden, Poly, China Resources, Xuhui, Xinhualian, Longhu and other large real estate companies have increased their floor purchase demand and are also occupied by PVC sheets. Home improvement market opportunities.
3. The domestic PVC sheet production factories are concentrated in coastal provinces and cities such as Jiangsu, Zhejiang, Shandong, Guangdong, and Shanghai. The export conditions in these regions are superior. The foreign engineering market and household market will become new sales growth points for PVC sheet.
In 2014, the bilateral trade value between China and the “Belt and Road” countries or regions was close to 7 trillion yuan, accounting for a quarter of China’s total value of foreign trade during the same period, an increase of about 7%, which was 2.3% higher than the national import and export growth rate. 4.7 percentage points higher. Among them, China’s exports to countries along the “One Belt and One Road” increased by more than 10%, and imports increased by approximately 1.5%.
The "One Belt and One Road" policy will help stimulate exports, digest the production capacity of the flooring industry, help solve the problem of overcapacity, promote domestic industrial upgrading, allow companies to go global and open up foreign markets. The “Belt and Road” covers Asia-Pacific, Europe, the Middle East, and Africa, including 65 countries. Most of them are emerging economies and developing countries. Their total population exceeds 4.4 billion, accounting for 63% of the world's population. These countries are generally in the economy. The rising period of development has a strong demand.
Therefore, the development prospects of plastic flooring are still promising through the internal "radical cure", strengthening technological innovation and brand building, optimizing the allocation of market resources, and promoting exports through the "One Belt and One Road."