Asta Eder Composites Consulting [email protected]
www.wpc-consulting.eu
Responding to Asian Imports
Wood-Plastic Composites 2011, 8. – 10.11. 2011, Austria Trend Savoyen Hotel, Vienna, Austria
Overview Overview of bio-based composites
Structure of the WPC imports
Structure of the trade involved in imports
Quality and price level of the imports
Marketing strategy
Marketing strategies of the European producers
Product differentiation
Cost leadership
Market segmentation
Wood certification systems
Voluntary certification European quality and eco labels
Ecological assessment
Market size and outlook for bio-based composites
Conclusions
Overview of fiber-reinforced polymers Wood Polymer Composites (WPC)
Synthetic polymer + wood + additives
Non expensive material, usually wood flour acts as a filler
Application: Decking and Siding
Natural Fibre Composites (NFC)
Synthetic polymer + natural fibres(or wood) + additives
Natural fibres are true reinforcements for polymer
Application: Transport
Bio-based Composites
Syntetic polymer + > 20% bio-based reinforcement or filler+ additives
Application: Construction, transport, household goods
Biocomposites
Biopolymer/ Bioplastic + natural fibre/ wood + additives
Application: Packaging
Naturally Reinforced Polymer Composites (NRPC)
Synthetic polymer + wood or natural fibres + additives
Includes both WPC and NFC
Fibre Reinforced Composites (FRC)
Synthetic polymer + rice hull/husk as reinforcement + additives
Application: House construction
Natural Fi l led Polymer (NFP)
Synthetic polymer + natural fillers
Asian WPC imports
Amongst Asian countries China has the largest import volume to Europe. Imports from Japan are stable but on a much lower level.
Chinese WPC industry has grown through exports in the decking application field
Today China’s WPC industry is the second largest in the world after the United States. This development begun after the U.S. companies started the WPC production in China
The decking amounts 80% of the Chinese production volume of 300 000 tpa (in 2010); prospects for the growth of the WPC production are tremendous
Import Structure in Europe
Import houses
Direct imports from DYI-Chains
Outlet stores
Small European companies import WPC decking also along with their own product
Marketing Strategy
What is our targeted customer group?
What type is our competition?
What features are the same as the Asian WPC? Points of parity (PoP)
What is the difference between the Asian WPC? Points of difference (PoD): Also called USP
SWOT Analysis Marketing strategy
Marketing Strategies of the European Producers
Product differentiation
Cost leadership
Market segmentation: Target group environmental concerned customers:
Wood Certification Systems
Voluntary Certification: European Quality and Eco labels
Ecological Assessment
Product differentiation
Used by businesses to achieve and maintain competitive advantage
Can be used if the target customer segment is not price-sensitive
Very wide decking boards, Natur-Form, Novo-tech, 2011
Decking tiles with natural stone Mc Farrland Cascade, 2011
Excepted wood- and wood-aluminum window with improved insulation capabilities with extruwood cap based on WPC
Reduced material and assembly costs for the window
Low-energy window certified by independent Austrian testing institute (MA 39, Vienna) according to relevant national and international standards
Product Differentiation WPC Window Profile
Cost Leadership- From Label Waste to Engineered Composite
+ virgin PP
Decking and siding by UPM ProFi
The 10-UNIT SYSTEM furniture concept is the wood plastic-composite products to emerge from cooperation between furniture manufacturer Artek, architect Shigeru Ban, and UPM-Kymmene.
Market Segmentation: Wood Certification Systems
Forest Stewardship Council (FSC)
The Programme for the Endorsement of Forest Certification (PEFC)
Quality and test regulations for wood polymer materials
Several governments support the certification of sustainably managed forests and will continue to use wood only from certified stands in its procurement measures.
Wood fiber producers have obtained the PEFC
Compounders like Beologic have FSC and PEFC
Market Segmentation: Voluntary Certification
European Quality and Eco labels In addition to WPC standard PrEN 15534-1-4
that will be available as full EN standards in 2012
German quality label (VHI) is in tune with the PrEN standard
CTB WPC Decking standard in France
VTT expert services of developed technical approval ETA 11/0037
Different eco labels are used for example Nordic Ecolabel. The Nordic Ecolabel is eco labelling scheme that evaluates a product's impact on the environment throughout the whole lifecycle (co²).
Market Segmentation: Ecological Assessment
Comparison between WPC and glass fiber reinforced polymer. The impacts will be considered in the following three stages: assembly (raw material extraction, raw material processing, and panel fabrication), use, and end of life. (LCA according to ISO/EN 14040)
Prospects for Bio-based Composites
The global market for bio based composites reached $ 2.1 Billion in 2010 (Brief, 2011), with an annual growth rate of 15% in the past five years. By 2016, the bio-based (natural fiber and wood) composite market is expected to reach $ 3.8 Billion.
Conclusions
The markets of WPC in Europe are growing
The imports as well as the domestic European production will grow
The quality of European marketing strategies and the development of the Chinese economy will influence the European market share of the imports in the future
The European decking buyers’ awareness of ecological facts and quality issues will be crucial for the development of the WPC imports in Europe