Driven by relevant national policies, the development of the domestic plastic pipe industry has seen a strong growth in recent years and has become the main force in the domestic plastics processing industry. According to statistics from the China Plastics Processing Industry Association, the current annual growth rate of China's plastic pipe market is 15%, ranking first in the world.

However, a good development environment has not allowed domestic plastic pipe companies to move ahead easily. Raw material prices have risen since 2003, and the resulting pressure has made companies overwhelmed. In particular, the price of PVC resin has soared. Some small and medium-sized companies are not strong enough. Enterprises are more difficult to manage and are at the edge of losses. The entire company is facing severe challenges.

The soaring cost of raw materials soared Since 2003, due to the rise in world crude oil prices, the price of plastic raw materials in the world has risen across the board. Driven by the prices in the international market, domestic prices of polypropylene, polyethylene, and polyvinyl chloride are also rising. In particular, polyvinyl chloride resin, due to the use of electricity to make the main raw material of polyvinyl chloride ** goods price increase, the price of PVC rose, coupled with the final anti-dumping investigations in September 2003 won, two factors stimulated the The price of vinyl chloride resin has risen. For polyvinyl chloride pipe companies, only the increase in the price of PVC raw materials has increased the product cost by more than 20%.

Banned lead salt and salt Addition of frosted PVC pipes In addition to trying to absorb the cost pressures caused by rising raw material prices, we must face the situation of lead banned. The lead salt stabilizer has been used as the main heat stabilizer by domestic PVC pipe companies because of its low price and excellent performance. However, due to environmental considerations, the construction announcement in 2004 clearly stated that the water supply CPVC (hard vinyl chloride) pipes used throughout the country must be produced using non-lead salt stabilizers. From April 1, Beijing restricted the use of PVC drinking water pipes and fittings that use lead salt as a stabilizer. The power sector has decided that all CPVC (CPVC) power protection pipes that are within the scope of the license granted by the Ministry of Electric Power shall be prohibited from using lead salts and organic tin stabilizers in order to prevent environmental pollution. On the premise of ensuring the use performance of other stabilizers, the prices should be higher, which virtually increases the cost burden of the tubing companies.

The huge market capacity and low entry barriers for a single type of internal and external problems have made plastic pipes a hot spot for investment by domestic parties in the past few years. As the investment was blind at the time, the production of low-end products was overcapacity, and its malignant effect had begun to appear. Taking the polyvinyl chloride pipe enterprises with the largest market share as an example, the current products are still concentrated in urban and rural supply and drainage pipes and fittings, rainwater drainage pipes and fittings, resulting in a saturation of market capacity and increasing competition in the product area. strength. In order to compete for the market, some companies adopt price-driven strategies, especially when some small-scale enterprises use low-quality products to carry out low-cost dumping, and the price war has intensified, and they are in a situation of vicious price competition.

The original competitive advantage of PVC pipe products with low technological content and single varieties is that the price is lower than that of polyethylene and polypropylene pipes, and the rising of raw materials makes them in a passive situation, providing an entrance for competitors. The sudden emergence of the polyethylene pipe market applications in addition to the original gas pipe, heating pipe, etc., in recent years began to enter the urban and rural supply and drainage pipe and fittings market. Moreover, the price increase of polyethylene resin is less than that of polyvinyl chloride, the production cost pressure is not great, and there is no problem of banned lead, which also adds a competitive advantage. It can be said that polyvinyl chloride pipe enterprises are currently in a situation of internal and external problems.

Actively adjusting and retaking the market From the trend of the world plastics market, the high price of raw materials will continue for some time. However, due to its consumption characteristics, plastic pipes have a relatively small space for price increase, and they hope that the price of raw materials will fall. It is a solution to the business pressure, and it is impossible to fundamentally get rid of the passive operating situation, and marketing strategies must be adjusted.

The first is to shift from product price competitiveness to brand competitiveness, strengthen the ability to respond to emergencies, and build their own competitive bastion. All indications indicate that domestic plastic pipe production enterprises have entered the era of low profit. In order to win a sustainable and stable development space, enterprises should establish a brand image as soon as possible. Large-scale enterprises can increase the cost caused by raw material price increase by optimizing production management capabilities. For small and medium-sized enterprises, it is advisable to join forces to reduce production costs through centralized procurement of raw materials.

Second, we must strengthen international trade and expand the world market. Compared with the domestic PVC pipe market, domestic plastic pipe products have a price advantage in the international market, more and more attention, and relatively high profits.

Third, we must increase new product development efforts and open up new profit points. Compared with advanced countries, there are many blank areas in China's plastic pipe applications. This is the new market capacity space, such as the development of plastic hose hose products. At present, the production of domestic plastic pipe enterprises is mainly concentrated on plastic rigid pipes, and there are relatively few companies involved in the production of plastic hoses. Therefore, the market is relatively broad, especially in the case of high technical content hoses, where there are few competitors, and the profit rate of products is high. .

Fourth, we must improve marketing innovation capabilities. In the past, domestic plastic pipe companies mostly adopted marketing strategies for industrial products. In fact, from the essential characteristics of plastic pipe products, some plastic pipes, especially civil products, may adopt marketing strategies for consumer products and establish brand names. In view of the current sales channels of plastic pipe enterprises in China, it is necessary to speed up network construction and enhance the promotion of market terminals, such as cooperation with large building materials supermarkets.