The unexpected outbreak of COVID-19, in 2020, had negative impacts on various industries, including the paper industry in China. But the prospects for the fast-growing tissue paper market are very positive. THE FASTEST GROWING MARKET
SUN HAIYAN, photos GETTY IMAGES & SHUTTERSTOCK
Mr. Martin Ng , Marketing Manager from Luck Tissue. The chairman of Jinboshi Group, Mr. Junqing Zhang , has found multiple ways to respond to the COVID-19, in- cluding solutions that focus on long-term branding strate- gies, investment in e-commerce promotion and intensified sales in convenience stores. “We stick to our brand image through our control of quality, product design and packaging”, Mr. Zhang says. DEMAND CHANGES IN THE CHINA MARKET The CEO of C&S Paper, Mr. Guanbiao Deng , remained optimistic in spite of COVID-19 pandemic. “The average consumption of tissue paper in China amounted to 6.9 kg per person in 2019, which is still lower than in developed countries. Considering the economic development and the improving living standard, we are very positive about the prospects for the tissue paper mar- ket in China.” C&S Paper is a private enterprise and one of the leading tissue producers in the Chinese domestic market. It was established in 1978, and listed, as the first of its kind, on the Shenzhen Stock Exchange in November 2010. “We are dedicated to the R&D (research and develop- ment) and sales of high-end tissue paper products,” says Mr. Deng. “In our business it is equally important to understand the market demand and to provide our customers with products that fit their needs and desires.” C&S Paper and similar businesses can see how customer demand is shifting. Toilet paper and facial tissues are still the two biggest products, with market shares of 53.5 per cent and 28.9 per cent respectively in 2019. Toilet paper’s share is falling, however, while facial tis-
When the economy slowed down, the tourism industry and the food and beverage sector took a hit. As a result, the demand for napkins – paper towels which are used in the outdoor environment by the consumers – also plummet- ed. However, the consumption of kitchen towels increased, since more people were having their meals at home. Most factories resumed production, but in general the output in the first quarter of 2020 was affected by the COVID-19 pandemic. “Investment in new production capacity decreased in the first half of 2020 due to the cumulative effects of overcapacity, heated competition and the COVID-19 out- break. The top players in the industry managed to boost profits during pandemic thanks to advantages of scale, brand effects, developed sales pipelines and varied product portfolios,” says Mr. Zhenlei Cao , President of the China Technical Association of Paper Industry (CTAPI). “However, small and medium-sized companies in the industry have faced huge challenges because their prod- ucts are often similar. They are especially sensitive if they do not have a strong online presence when offline sales are under pressure. The tissue paper market has gone through severe price competition in 2020,” Mr. Cao says. The COVID-19 pandemic changed people’s way of life, including the usage of tissue paper. During the outbreak, online sales increased. It is clear that the increased con- sumption of tissue is brought on by changes in awareness concerning hygiene. “We can see that the demand for tissue picked up and that customers have higher expectations on the speed of logistics. Meanwhile, customers now have a stronger in- terest in higher-quality products. We will also see more environmentally friendly packaging in the market,” says
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