Artificial turf has been developed for half a century since its birth. The market concentration of the artificial turf industry is high, with more than three generations of product updates and a perfect industrial chain. The upstream industry of artificial turf is mainly the petroleum and petrochemical industry, which provides raw materials such as masterbatches, grass filaments, base cloth, and glue for artificial turf enterprises, and its price fluctuations have a direct impact on the cost and profit of artificial turf enterprises.
The downstream demand for artificial turf mainly comes from the demand for paving in sports venues and home and landscape scenes. Its market size mainly depends on factors such as the strength of national and social sports infrastructure investment, enterprises' paving plans for landscape scenes, and consumers' personal willingness and ability to improve the residential landscape environment.
The sales of simulated turf products have seasonal characteristics, such as the Middle East due to the hot weather in the summer, a large number of paving will choose winter; school sports ground paving will generally be selected during the summer vacation when students leave school, both summer paving.
Barriers to entry into the artificial turf industry
1、Industry certification barrier
Being able to pass the testing of authoritative testing institutions and obtain the certification of authoritative organizations is a prerequisite for artificial turf enterprises to expand the high-end market, and is also an important force to boost the market reputation and influence of enterprises.
2、R&D and technical barriers
The manufacture of competitive artificial turf products depends on both the perfection of raw material formula of grass silk, backing and other links, and also depends on the improvement of production technology level, and also depends on the maturity and optimization of production equipment. Artificial turf enterprises need to continue to increase investment in research and development, improve the overall technical level, in order to consolidate and enhance the comprehensive competitiveness of enterprises.
3、Channel and reputation barriers
Artificial turf products are used in a wide range of areas and diverse applications. A competitive sales team needs to be able to cover many countries and regions around the world and fully understand the needs of different types of customers, such as different countries, pavers and wholesalers, in order to establish a stable relationship with customers. It takes a long time to build sales teams and cultivate sales channels, and the sales capacity of enterprises is also limited by the overall management level of enterprises.
4、Capital and scale barriers
Scale production can effectively reduce production costs, enhance supply capacity and enable enterprises to occupy a favorable position in the market competition. Achieving scale production requires large amounts of capital to invest in product technology research and development, construction of production sites, purchase of production equipment, hire professional teams, develop international markets, and need to cultivate a longer period of time, thus forming a barrier to new entrants.