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What is the market situation of co-extruded plastic wood

Monday, July 31, 2023

There are still many people who are more concerned about the market situation of co-extruded plastic wood. As we all know, co-extruded plastic-wood flooring is developed on the basis of ordinary plastic-wood flooring. However, in recent years, market competition has been fierce and price wars have been fierce. Although some manufacturers have secured a large number of orders, they still make meager profits. Therefore, more high-end and more beautiful plastic-wood co-extruded flooring has been favored by skilled manufacturers, and they have invested in development, hoping to find replacement products to obtain higher profits.

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It has been three or four years since few manufacturers were able to produce wood-plastic co-extrusion flooring products, and now many manufacturers can do this. The price of wood-plastic co-extrusion flooring has also dropped rapidly one after another. With the gradual maturity and standardization of co-extrusion wood-plastic flooring skills, and the sophisticated skills of suppliers such as co-extrusion wood-plastic flooring equipment, moulds, leather materials, and post-processing equipment, wood-plastic wood co-extrusion flooring has a development trend similar to that of ordinary plastic wood flooring. That is to say, after mastering the key technology of plastic-wood co-extruded flooring, manufacturers have started to save costs in order to improve their market competitiveness and gain a larger market share. Some even started price wars, and there are nothing more than two points to support the maintenance of price wars.

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The first point is to keep the product quality unchanged, reduce their own gross profit and even rely on their strong financial strength to promote the market with money, in order to harvest a large number of market customers and orders in a short period of time. With large-scale orders in hand, they can obtain better scale effect and improve efficiency and production technology, thereby promoting the reduction of costs and the increase of gross profit.

The second point is to keep the gross profit of the product unchanged. As the sales price falls, the production cost of the product must be reduced, such as moving to a more remote place to save rent and labor expenses, reducing the process flow, reducing the cost of raw material formula, reducing the post-processing cost of the profile, and increasing the production speed of the profile.

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In these product industries with full market competition, each product will go through a cycle similar to this, that is, at the beginning few people know about it and few people produce it. At this stage, the price can be significantly higher than the actual cost.

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