The artificial turf market has the characteristics of globalization, involving hundreds of countries and regions, and has formed two industry practices for a long time: the global industrial chain division of labor and cooperation and OEM sales, especially in the field of recreational grass.
1. Division of labor and cooperation in the global industrial chain
If you directly connect with terminal consumer groups, you need to fully understand the cultural customs and consumption habits of various countries/regions, which is a huge challenge for production enterprises. The division of labor in the industrial chain is more effective, and intermediate channels emerge as the times require: artificial grass wholesalers and artificial grass paving. business, connecting the production end and the consumer market. Wholesalers generally do not process artificial turf products.
Single small-scale purchases have stable overall frequency and large cumulative scale; pavers are engineering contractors. After purchasing artificial turf, fillers, elastic pads, and other materials, they provide site design for end customers. , paving and maintenance, the single scale is large but the frequency is unstable. The main product sold to wholesalers at home and abroad is leisure grass, and the main product sold to pavers is sports grass. The general correspondence is leisure grass→wholesaler, sports grass→pavers.
2. Artificial grass OEM mode
In the recreational grass market, compared with manufacturers, artificial grass wholesalers have a deeper understanding of regional needs and have stronger channel capabilities to promote products. From the perspective of a wholesaler, owning a brand by yourself is more attractive than introducing a brand, in case the supplier can be changed without changing the brand in the future, reducing the right to speak in upstream (if the manufacturer is an ODM, the R&D and design ability will enhance the right to speak) ).
At the same time, the use of foreign brands does not result in a significant premium, so there is no need to retain foreign brands. For manufacturers, there is no need to set up transit warehouses, sales outlets, and supporting sales personnel by themselves, and they can also control product promotion expenses and reduce management difficulties. In the sports grass market, terminals are not sensitive to price, and there are qualification certifications. Manufacturers have a stronger sense of brand presence due to technology and their right to speak. It is difficult for pavers to “de-brand”, and the dependence relationship is stronger.
