New ideas on the development of papermaking and paper products industry in China

Bottleneck--paper and paper products industry entered the era of meager profit

Citation: Starting from the second half of last year, China's steel industry has encountered an unprecedented cold wave, in the first quarter of 2012, the steel industry profit and profit margin for the initial "double negative", the bleak situation of the entire industry losses, into the second quarter, the steel industry, the loss of the growing, more industrial chain-related enterprises are encountering a more severe test , the proportion of middlemen in some regions is up to 50%. In such a market context, it is not difficult to understand why China's fourth-largest steel production enterprises, sales of hundreds of billions of dollars in the calculation of Wisco to change to "pig".

Compared to the steel industry in winter, our paper and paper products industry, although not brilliant summer, but also can be used to describe the warm spring. According to the statistics of the relevant departments, 2012 years in the first quarter, the domestic paper and paper products industry more than the size of the main business income accumulated 277.42 billion yuan, the cumulative growth of 15.87% per cent, cumulative total profit of 12.04 billion yuan, the cumulative increase of 3.2%. While the cumulative growth rate was below 8.27% in the same period in 2011, it was much more palatable than the negative growth in the steel industry.

In the above statistics, we particularly need to focus on two sets of data. In the first quarter, the pulp and paper industry in the enterprise sales still more than 15.87% double-digit growth, and our profit growth rate of 3.2% is far below the sales growth, has reached 5 times times the gap. This shows that although the entire domestic market for pulp and paper demand to maintain a high level, but our industry's average profit level is beginning to make people worried. Combined with the first half of 2012 domestic pulp and paper industry development trend, perhaps, we have to admit the fact that the paper and paper products industry has been closely followed by the steel industry, enter the era of meager profit!

Root causes-excessive market competition, severe overcapacity

The steel industry has many similarities with the paper and paper products industry: Two industries also have a high degree of dependence on the upstream raw materials, the market price is subject to the import of iron ore and wood chips, such as the main origin pricing and international price fluctuations; , the desire to expand the scale of production is strong, the effect of economies of scale is very obvious, as well as the problem of serious overcapacity, the two industries are under the pressure of national policy to accelerate the elimination of backward production capacity ...

Whether it is due to the upstream raw material prices, labor costs, environmental pollution costs to improve, or the core paper equipment by foreign brands completely monopolized, these external factors are not paper and paper products industry into the main reason of the era of meager profit. Because of these objective external difficulties, all paper and related enterprises in China also need to face the difficulties. Only one point, "excessive market competition, heavy capacity surplus" is the root of all. According to incomplete statistics, as at the end of 2011, the national paper enterprises about 3,000, China's top ten production of paper companies accounted for only 30% of the total production and sales. Over-dispersed production capacity, coupled with the basic convergence of raw material sources and products will inevitably lead to excessive competition in the entire industrial chain enterprises, when the era of overcapacity, the price war into the only means of competition, resulting in the entire industry decline in average profit, into the era of meager profit.

The way out--annexation, transformation, integration

Upstream paper enterprise development of the key words: Mergers!

Up to now, the idea of "forest-paper integration" has been mentioned for more than 20 years, so far it is still a beautiful dream; the road of the localization of the core manufacturing equipment is still far away; it is difficult to break through to the traditional distribution model, the market strategy of product differentiation can only be in the empty talk stage Thus, for paper enterprises, the Sword of the era of meager profit is only "annexation".

The improvement of the concentration of paper industry seems to have become the only way for China's papermaking industry to upgrade and develop. In the global market, the concentration of paper industry will not only help China's paper industry to obtain a greater global pulp and paper pricing discourse, and is conducive to centralized production, improve the scale of efficiency, standardize the industry price competition system, to avoid price war, the cost of pressure to the downstream transfer, at the same time, but also adapt to the country's continued introduction of the elimination of backward production capacity , advocating environmental protection policies for energy saving and emission reduction.

Whether we are willing to admit that competition in the industry market has come to the stage of elimination, integration, reorganization, how to enhance the core competitiveness of enterprises, and in this brutal knockout phase of the final winner, will be the next 2-3 years, the owners of paper enterprises should urgently need to consider the issue.

Midstream processing trade, warehousing logistics and other related enterprise Development keywords: Transformation!

Compared to other industries such as steel, paper and paper products industry is more traditional, whether it is the industry's information level, the transparency of the industry price, the standardization of the industry in a relatively primitive level, with the continuous development of the market, product information is constantly open and transparent, distributors, Traders want to get excess profits through asymmetric information to the end of the pattern, meager profit becomes inevitable, the application of network technology and E-commerce will promote the paper and paper products industry development will occur qualitative changes.

Back to the history of paper and paper products industry, the existence of pulp and paper traders has its own market reasons, on the downstream enterprises of the credit sales model, well play the role of its funds reservoir. But in addition, the trader is just a porter, in the industrial chain does not play the role of value-added, with the price, sourcing and other information transparent and open, factory direct sales of the model will gradually rise, traders living space will receive squeeze. The business model of moving bricks and nuts is going to be narrower. From pure traders to providing value-added services to provide service-oriented traders (distributors) for upstream and downstream enterprises to provide trade, warehousing, processing, distribution and other value-added services, pulp and paper dealers, traders are the only way forward.

Paper and paper products industry has four outstanding problems:

The first big problem: inefficient distribution channels. The current pulp and paper industry marketing mainly to direct sales and relationship marketing, through the sales telephone fax or direct visit customers to deal with a variety of business contacts, high cost, low efficiency, directly affect the scope of business coverage;

The second big problem: inefficient production and marketing system. With the market personalized demand for promotion, product types and specifications continue to increase, the number of shipments increased, single shipments decreased, coupled with the supply and demand relationship matching due to the low level of industry information, market business vitality is restricted, the industry production and marketing system inefficient;

The third major problem: the low level of standardization in the industry. Lack of a unified quality standard system and certification system, the lack of authoritative national price information release platform, the lack of a sound industry price index market guidance mechanism, the industry as a whole is still at a low level of development;

The fourth big problem: The industry financing gap is big. Lack of a unified credit rating system to support the lack of a mature industry financing model, paper and paper products industry enterprises have encountered difficulties in financing.

Integration--the road of development and upgrading of papermaking and paper products industry

The paper and paper products industry in the four major problems, only by Government Association guidance, individual enterprise exploration is difficult to short-term solution, reference to other countries and domestic relatively mature commodity industry development Road, we can find that every mature industry must have a relatively independent, for the entire industry to provide third-party integrated services, To achieve the industry supply chain integration industry trading platform. Relying on spot trading, supply chain finance, industry information release and certification, testing, credit by virtue of, trade fairs, warehousing logistics, processing supporting services such as the convergence of vertical trading platform to achieve the aggregate effect of the production of pulp and paper industry chain of comprehensive integration, thereby fundamentally solve the paper and paper products industry four outstanding problems.

Based on such an industry development background, the Guangdong pulp and paper exchange emerged. As the world's first pulp, paper trading integrated service platform to carry the integration of paper and paper products industry-wide supply chain burden, especially in the global economic environment downturn, pulp and paper industry encounter meager profit era background, Guangdong Pulp and paper exchange listing and operation are much concerned about.

The author from July 19, 2012 Guangdong Pulp and Paper exchange and China material storage and transportation strategic cooperation signing ceremony learned that the Guangdong pulp and Paper Exchange has a number of domestic banks, warehousing logistics, third-party regulatory companies to establish strategic cooperative relations, Soon paper and paper products upstream and downstream enterprises will get the pulp and paper industry vertical business-to-business E-commerce, pulp and paper supply chain finance, pulp and paper intelligent warehousing Logistics, global pulp and paper information and other professional third-party services.

For paper and paper products such a has nearly 2000 years of history of the traditional industry, we also enjoy the Guangdong pulp and paper exchange can rely on advanced information network technology and modern business innovation model, accelerate the integration of the industry for the traditional paper and paper products industry to upgrade development.

Wen/Yehai