Grass seed industry enters the era of low profit

Introduction: after several years of price war, new page 1, the Chinese grass seed industry, which once attracted huge profits, seems to be very quiet, the noise of fighting seems to be gradually gone, and the footsteps of followers are no longer in a hurry Industry insiders lament that the profits of China's grass management have been declining Up9 according to senior figures in grass industry, the profit margin of grass enterprises in China was as high as 100% around 1995, but by 2000, the figure had been rewritten as 15% - 20% It is generally believed that China's grass industry has entered the era of meager profit Like other industries, up9 is also a "borrowing doctrine" in the initial stage of the development of China's grass seed industry, which imports large-scale grass seeds from abroad In recent years, China's grass seed import has been on the rise: in 1998, China imported 3600 tons of grass seed, in 1999 it was 6000 tons, in 2000 it was 10000 tons Up9 China's grass seed industry rose in the mid-1990s Due to the urgent need of grass seed in China at that time, grass entrepreneurs made huge profits from the imported grass seed Driven by this, small and medium-sized grass companies have mushroomed and established one after another Today, there are thousands of grass enterprises The intervention of a large number of enterprises will inevitably lead to a price war Some of the smaller companies seem to be unable to do their job Even some enterprises are exhausted and defeated in the price war Up9 a senior person in the grass industry believes that the price war is a product of the initial stage of the industry Because everyone's products are similar to each other, or even imported from the same channel, the so-called competition can only be price theory competition Therefore, some people joked that the current grass industry enterprises are busy with two wars: one is the price war, the other is the "war of words", the latter refers to the very few grass industry enterprises in the price competition, do not forget to slander each other In fact, price reduction is a double-edged sword On the one hand, through price reduction, enterprises can expand their market share as much as possible and create a more favorable platform for future competition On the other hand, excessive price reduction will bring a series of negative effects For example, some entrepreneurs, in order to win the market war, do not hesitate to import inferior grass seeds from abroad, and replace inferior ones with better ones to reduce costs Some enterprises no longer regard the grass industry as the ultimate goal of enterprise management, but only want to take advantage of the fire and rob Short-term behaviors are everywhere Up9 for the current profit margin of about 20%, most entrepreneurs think it is reasonable profit and acceptable However, some insiders pointed out that if the future development still stays in price competition, it will bring negative impact on the sustainable development of the whole industry Once the enterprise loses the reasonable profit space, it will have to reduce the personnel expenditure and scientific research investment Many small and medium-sized companies even face the dilemma of bankruptcy and layoff In the long run, it will endanger the healthy development of the industry Up9 in a sense, price war is an immature performance of the industry market Grass industry enterprises should get away from price war and "saliva war" as soon as possible, practice their internal skills, improve product quality and take the path of professional development At present, more than 90% of Turfgrass in China are imported, and the import is more and more large Therefore, it is ironic to say that China's Grassland entrepreneurs are only "porters" of foreign grassland industry In addition to turfgrass, the import of forage in China is also expanding About 40000 tons of forage are produced in China Due to the implementation of the state's conversion of farmland to forest and grass, desertification control, and adjustment of agricultural industrial structure, and the increase of grass seed consumption, the import of herbage seeds has increased substantially In the past, the import of herbage seeds accounted for about 10% of the total herbage seeds, accounting for about 30% in 2000 Up9 predicts that in the next five years, the import growth rate of turfgrass will be about 20% After five years, the import growth rate will decrease year by year Up9 China's grass seed is the principle of using, so is scientific research! The research in our country only focuses on the adaptability research of foreign varieties From lawn maintenance, weed removal to pest control, there is no technical system suitable for China's national conditions In the future, China grass industry company should develop towards specialized production and focus on the selection, development and promotion of new grass species in China When it comes to the future, up9 remains generally optimistic The great development of the western part of China plays a great role in promoting the grass industry At the same time, with the increase of the overall income of the people, the courtyard greening and community greening in China will become a big market that can not be ignored It is understood that there are more than 160 golf courses in China, plus only about 200 driving ranges, while there are as many as 20000 golf courses in the United States Compared with that, the market potential is huge The success of China's bid for the 2008 Olympic Games has set off a new round of national fitness climax, and the business opportunities for the construction of China's Stadium lawn cannot be ignored Up9 up9