The new cooperationnormalcy of WPC composite decking

Wood plastic composites (WPC) industry has developed more than 10 years, which has passed the stage of market awareness and rapid market increase stage, WPC industry now is in the middle stage of development,namely in the stage of smooth and continuously improvement market mechanism. Daisy made a simple summary of the new cooperation mechanism of WPC composite decking as follows.

Firstly, WPC the trade relationship of buyer and seller become more equal.

In the early WPC developmentmarket, many WPC company’s products are often rejected as the market is unfamiliar with the WPC materials, and the customer can not install after the purchasingetc..In order to obtain the orders, many factories even promised some unreasonable demands of their customer, which is thoroughly buyer’s market. In the rapid development period, market demand is growing rapidly, many WPC companies’ production capability can not meet the market’s demand due to financial matters and their production capability etc., which caused the decreased quality of service, the growing demand of Wood plastic composite products leading to the emergence of a seller’s market.After the six months adjustment during 2014 and 2015,many WPC factories have expanded the production, now the factories’ output can catch up with the growing market demand,eventually, WPC trade environment now is relatively fair.

Secondly: Today’s trade mode is widely and well received by customers.

Today’s prevailing business mode for buyer is: waiting for goods after paying deposits, namely that is a mode that after customers and manufacturers negotiate a good price, quantity, quality, color and other details, customers should pay a certain proportion (generally 50%)deposit to the manufacturer before the production, then the finished WPC products will be sent to the customer’s sea port, balance payment should be arranged after customers check the goods, then finally exporter release cargo to customers. This mode is based on the matureof WPC industry and the trust between suppliers and buyers.

The third: Sell on credit era is over.

As WPC industry matures, the manufacturers’ profits is getting lower and lower, there is no more capital to do sell on credit; As many global distributors have engaged in selling WPC products for many years, they have dealt with many projects, and accumulated lots of wealth, so they have sufficient funds in hand; however WPC manufacturers need cash flow to buy raw materials and pay for labor costs, and due to global sourcing tends to purchase from factories directly rather than the trade companies,so the factories are unable to support sell on credit,more and more manufacturers are not willing to be owed and distributors abroad can understand the situation of the factory suppliers.

LeadWPC is committed to maintaining the good WPC industrial development order, we hope we can keep the good order together and looking forward to cooperate with you in the near future.