Dongguan Lirong Packaging Materials Co., Ltd
Address: Tangxia Town, Dongguan City, Shibu New River Road on the 9th plant 1-2-3 room
Contact: Dragon Xie
High grade corrugated box industry business, including design, manufacture, printing and other services, the main downstream is home appliances, it and food consumption of large enterprises. These big customer orders increased sharply as national spending power increased. At the same time, the current domestic corrugated box industry concentration is very low, quality enterprises are relying on products and services, high speed expansion, seize the big customer orders incremental.
Corrugated box enterprises are difficult to control upstream cost
Corrugated box industry concentration is very low, but in the upstream corrugated / cardboard base paper industry concentration is quite high. When prices rise, leading and small paper prices are willing to push up the price of paper and paper products, and actively increase the dealer inventory cover Xishou, terminal customers in panic psychology have to speed up the purchase, which leads to the carton enterprises face the upstream (mills and distributors) was relatively in price weak.
Downstream demand polarization, high-end customers accept higher flexibility pricing
At present, China's corrugated boxes showed signs of polarization. On the one hand, more and more high-end customers are in urgent need of high quality corrugated boxes and additional services, which can provide incremental demand for such products and services vendors but also keep up with the incremental capacity of these markets; on the other hand, many low-end customers need only "container" can hold things, on the corrugated carton quality and additional services no, this kind of market demand and the limited incremental threshold is not high, pile up in excess of requirement. The high profitability of high-end customers makes them less sensitive to the cost of carton packaging, coupled with the high demand for quality cartons and services by these customers, their willingness to accept flexible pricing is relatively high. While the low-end users, market competition homogenization, the price war as the only malignant results. Lead to low-end market gross margin is generally low.
The economic transformation has catalyzed the evolution of high-end customers' demand for carton Enterprises
Along with the economic transformation in China, there have been several major changes of high-end customers own business: one is the domestic residents consumption capacity, the original export-oriented industry gradually to the domestic market; two is the product renewal speed, zero inventory management and fast logistics become rigid demand; three is due to the coastal area the rising cost of inland and the rapid growth in demand, the manufacturing industry has been moved to represent the general trend.
Changes in high-end customers have also spawned new requirements for corrugated box enterprises. First of all, due to the increasing volume of long-distance logistics transportation, customers are increasingly strict with the physical indicators such as shock resistance, anti pressure and moisture resistance of cartons. Second, the competition and cost control of the customers also increase the demand for additional services such as the exquisite printing of cartons, timely delivery, logistics optimization and inventory saving schemes. Furthermore, manufacturing clients move often require cooperation over the years and their supporting carton enterprises can follow their own to the mainland factory, this is a challenge for enterprises to open new corrugated carton factory speed. Finally, set up many production lines in the nationwide large enterprises increasingly integrated procurement of corrugated boxes, which gradually give up the original in all decentralized procurement, and to find a unified national suppliers, to ensure the strength of carton, printing effect and quality of service coordination. As a result, in all parts of the country wide layout of the leading carton enterprises in high-end customer orders will become more and more large, it can be described as "strong Heng Qiang.".