Mask Is "Hot", Diapers Go Back To The Track -- Competition Is More Intense.

Along with the fever of the mask industry, the prices of health products and raw materials have dropped sharply. Before that, the factories that cut down production, reduce production and change production due to the high price of raw materials and the demand for masks have begun to return to their main businesses. The "diaper" industry after the "return" has made the market competition fiercer than before.

Steady return to diaper industry

"The industry is basically getting rid of the masks, but a few qualified companies are still producing." Su Lianwen, general manager of Quanzhou Ting Shuang hygiene products Co., Ltd., said that from the development of nearly two months, most enterprises returned to paper diapers smoothly, and there was not much turbulence in the industry. There are individual diapers out of the situation, most of them are concentrated in small and medium enterprises, and the impact of large enterprises is not large. After all, many colleagues in the mask industry are only acting as sideline short-term behavior, do not put too much resources and manpower, and wholeheartedly return.

Yijia (Fujian) sanitary products Co., Ltd. (hereinafter referred to as "Yijia") has begun to return to its main business in late May. At present, there are 4 diapers, 2 sanitary towel production lines and 1 core production lines in the workshop. "Since the outbreak of the epidemic, although production has shifted to masks, the diapers have not ceased to supply. We know that diapers are the main business and are always optimistic about the development potential of this industry." Chen de an, general manager of the company, said.

On the one hand, Yijia has increased its production capacity. On the other hand, online channels are also expanding. Recently, 2 new stores have been added to Tmall, and new products will be launched at the end of this month. At the same time, more research and development efforts are being made, laboratories are being renovated, and many newly purchased experimental equipment will be installed and put into operation in the near future.

Recently, Tang Dai Feng, deputy general manager of Quanzhou United Paper Co., Ltd. is very busy. There are 4 lines and 5 shifts in the workshop. In order to further expand production capacity, the number of shifts will continue to increase and personnel will be expanding.

Deep in "low price whirlpool"

In fact, the price rise of raw materials caused by the epidemic is the biggest impact on domestic SMEs. Therefore, some manufacturers are trying to seize the opportunity to reverse the trend. According to the latest data of ECdataway data, in the first quarter of 2020, the whole baby diaper market had a high degree of brand concentration. From the data, Pampers, curiosity, flower king, king and uni Jia five top brands were not affected by the epidemic. Although the price rise of raw materials has brought a lot of pressure to the survival of some small and medium-sized enterprises since March, these big brands maintain stable sales. On the one hand, the supply chain is well done, the consumer loyalty is relatively high, and the brand premium capability is strong; on the other hand, the core point is that the raw material suppliers dare not increase or dare to break off, giving priority to these big customers and old customers.

In this smooth transition, the industry is deeply in the "low price whirlpool". Su Lianwen told reporters that the market prices of their brands are slowly returning to normal now, while individual businesses are making great efforts to promote sales. This wave of sales promotion is bigger than before. They want to take advantage of other enterprises from mask to paper diapers and seize the market as soon as possible.

An inconvenient owner of the diaper manufacturer told reporters that on the same day the factory had to produce a batch of goods, and each diaper should lose 6 cents. That batch of goods went out to lose 1 million yuan. But there is no way to lose money. Many businesses have already cut the price. He has to cut it down, worrying that if the price does not go down, customers will lose. On the other hand, he also hopes to seize some of the market.

Chen Yuzan, marketing director of Yijia, told reporters that his company also lowered its price last week, and the price of the product fell back to the price level before the epidemic. "From the speed adjustment of the industry, we can see that competition is very fierce." Chen Yuzan said.

"The price of our company has not yet dropped to the price level before the epidemic. Because the raw material has not fallen back to the epidemic, the price adjustment is actually at a loss. Now the diaper market is too chaotic, the market is vicious competition. The head of a diaper manufacturer sighed helplessly.

Accelerate industry reshuffle

"Going cheap will be our next priority." The Soviet Union pointed out that there are many channels in the online and offline markets, and low quality products are everywhere. If a company wants to make a brand, it will not be able to make low-cost products. In the future market trend, the brand and quality products will be the mainstream of future consumption of diapers.

In view of the trend of the industry, the Soviet Union made a new adjustment and sorting out the company. Su Lianwen said that the reconstruction of the talent system is not enough, but the comprehensive strength is good enough to keep pace with the current market trend. At the same time, we should increase the R & D of quality products, especially to build the core competitiveness of our products, enhance the brand image, enhance the sense of customer experience, and actively expand the short video hosting channels such as jitter and fast hand.

Coincidentally, Yijia also launched a higher positioning product, after all, quality is the most convincing, and only a higher positioning product can resist the volatility of raw material prices. At the same time, the company is also actively exploring new ways of IP cooperation, in order to better impact the market.

In the industry view, this year's diaper industry competition will be concentrated in the second half of the year, impulse is still the main task of businessmen, price competition will be more intense. The mask demand during the epidemic saves some of the less competitive enterprises, and also makes the industry more competitive. Companies with insufficient strength will accelerate their withdrawal from competition.

The epidemic makes us reexamine the industry and speed up the reconstruction of people's freight yard. In the past, business gameplay is becoming more and more difficult to achieve. Entering the new world requires more business leaders to lead together with collective wisdom. The Soviet Union predicted that the industry will usher in a big reshuffle in the second half of the year, and the continued competition in the industry will continue for a long time. In this process, the competition must be the comprehensive strength of an enterprise, and the way to gain market position simply by relying on low price to occupy the market is out of date.