As we all know, because of a sudden epidemic, since the beginning of 2020, the best products to sell are masks, and the most popular ones are also masks. So we see that many domestic manufacturers have begun to produce masks.
According to the data, there are more than 5,000 newly established mask companies in January-February 2020, and cumulatively, the number of newly registered mask factories has reached more than 10,000 after the outbreak, and more than 40,000 companies have involved in the production of masks. , And this number continues to grow.
With the growth of enterprises, the production capacity of masks has also risen sharply. Before the outbreak, the average daily production capacity of domestic masks was about 20 million. By February, the average daily production capacity had reached more than 200 million.
In the early days, these mask factories also made money, and even mask-related enterprises made money. Like mask machine factories and raw material factories, everyone made money, because masks are so easy to sell, as long as they can be activated, they can make money, even many people. The mask machine is called a “money printing machine”.
But with the domestic epidemic situation under control, these mask machines are no longer “money printing machines” and have become money-consuming machines. These mask factories are now in a dilemma.
The first is the domestic market. Demand has slowed because of too much production capacity and the epidemic has been brought under control. Now the supply of masks has stabilized. The Chinese have truly achieved “mask freedom”, natural prices have also come down, and profit margins are not so high. Too.
The products of many small mask factories have already started to backlog and cannot be sold. The more production, the greater the loss.
Although the foreign market is still in dire straits, everyone urgently needs masks, but the products produced by ordinary enterprises cannot be shipped at all, especially the masks produced by these small-scale enterprises newly established this year are very difficult to ship abroad. , All kinds of certifications and certificates are not done well, and no one else wants.
For mask companies, employees hire, materials are bought, and the machine is turned on. Every day is a cost. As long as the masks are not easy to sell, they lose every day.
I don’t know what you think about these mask companies that were set up together. At first, many people predicted that once the epidemic was controlled, these mask companies would have to fall by 80%, and then see whether this prediction is accurate.