begertt - Global 安全套 shortage: 100 million? It was sold out recently

　　Global 安全套 shortage: 100 million? It was sold out recently

　　The global outbreak of COVID-19 has caused temporary shortages in many regions. In addition to masks, protective clothing and toilet paper, 安全套 have been snapped up as brides’ supplies in several countries and regions, including Hong Kong, China, Sydney, and Australia. In the early stages of the AIDS epidemic, there was also a shortage of 安全套 in mainland China.

　　安全套 are sold out, and it is not impossible to get rid of the turbulent hole. According to Bloomberg News, Karex, the world's largest 安全套 manufacturer, recently stated publicly that due to the epidemic, its three factories in Malaysia have not produced 安全套 for nearly 10 days, resulting in a shortage of 100 million 安全套.

　　Not only Malaysia, but another major 安全套 producer India also issued a "stop work order" in late March, and its domestic 安全套 production basically stopped. With the spread of the epidemic, it is still unclear whether Thailand and other places will be affected by the 安全套 industry.

　　Some experts believe that the obstruction of foreign 安全套 production will help domestic companies break the market monopoly of foreign "Durex" and "Okamoto".

　　The head of the brand department of jefferies pharm told 偽娘用品< reporters that with the outbreak of the epidemic, La Fu Lace plans to tilt more global research and development and production towards China.

　　Global shortage of 100 million 安全套

　　By 2019, the global 安全套 market is estimated to exceed USD 6 billion. In terms of sales volume and sales, the Asia-Pacific region is the fastest-growing market, with a compound annual growth rate of 7%.

　　In the Chinese market, according 硬不了 to the "2017-2022 China Sex Toy Industry Development Prospects and Investment and Financing Strategies Research Report" released by the China Business Research Institute, the sales volume of 安全套 in China was 12.8 billion in 2015, and the market will rise from USD 1.9 billion in 2015. Increase to 5.2 billion US dollars in 2024.

　　The collapse of the world's largest 安全套 manufacturer Kangle Group has dealt a heavy blow to upstream brands.

　　According to Reuters, entertainment companies account for one-fifth of global 安全套 production. In addition to its own brands, Lekang's main production capacity is used to contract other global brands, including internationally renowned brands such as Durex and ONE.

　　However, hit by the epidemic, Recreation was forced to suspend work, and its three factories in Malaysia did not produce 安全套 for 10 consecutive days.

　　Although the Malaysian government specifically exempted the entertainment company's right to restart operations on March 27, a 50% reduction in the number of employees means that the company's production capacity will only be reduced by about half within a period of time.

　　"It takes time to open a factory. After the production capacity is halved, it will be difficult for us to keep up with demand." Entertainment CEO Wu Mikai predicts that 安全套 will be in short supply worldwide. For some African regions, this shortage may last for several months.

　　The domestic market will not fluctuate

　　Industry insiders told reporters that major 安全套 manufacturers in China, Thailand, Malaysia, and India sell their products in China in each country.

　　In addition to Malaysia, another major producer, India, has also stagnated. On March 22, the Indian government issued a work stoppage order, and some Indian 安全套 operated by ports are also facing shortages.

　　Judging from the current situation, part of the impact of the stagnant recreational capacity has been transmitted to China.

　　More than 95% of Kangle's 安全套 are manufactured by Kangle, with an annual output of about 150 million. It is one of Kangle's most important customers in China, Jiang Zhiming, general manager of Kangle, told the Beijing News. After the news of the closure was exposed, Kangle immediately contacted it, and it assured that orders in the first half of the year would not be significantly affected.

　　But Jiang Zhiming also said that due to factors such as the increase in foundry costs, the price of some 安全套 from Nose Technology will increase in July this year.

　　Will there be a shortage of 安全套 in the Chinese market in the short term? Jiang Zhiming doesn't think so. He said that the shortage of domestic 安全套 mainly occurred in the early stage of the outbreak. Due to traffic congestion, some supermarkets once appeared "difficult to find". As most companies return to work and the transportation industry fully recovers, Jiang Zhiming is expected to realize that the 安全套 supply market in China will not fluctuate for a period of time.

　　Shi Lichen, a medical strategic planning expert and founder of Beijing Chending Management Consulting Co., Ltd., also said in an interview with a reporter from the Beijing News that there will be no shortage of 安全套 in China. As domestic companies resume work and production, the overall price of 安全套 in the 安全套 market will not rise.

　　A share of Human Welfare Medicine or benefit?

　　Some insiders believe that Kangle's production cuts may affect the supply of Durex and other brands, or help Chinese companies increase market share and establish brands to a certain extent.

　　Shi Lichen also said that the outbreak of contract factories not only means an increase in the number of orders, but also the number of Chinese independent brands.

　　Shi Lichen believes that my country has now broken through the technical barriers to 安全套 production, and some ultra-thin products can also be produced domestically. The main problem at present is "lack of brand recognition."

　　According to reports, a domestic company named "Lanzhou Ketian Health Technology Co., Ltd." has launched a water-based polyurethane 安全套 product "Zhongchuan 001". This product is thinner than traditional latex 安全套 and has better experience in use. Japan's Okamoto competes with sumo. In January 2018, the first phase of the product production line was officially launched. The project has a total of 10 production lines with an annual output of 1 billion.

　　Jiang Zhiming, general manager of Knox Technology, told reporters that the company's water-based polyurethane 安全套 are currently in production, and the technical difficulty is not great.

　　However, the Chinese 安全套 market has long been dominated by foreign brands. According to data from China Industry Information Network, in 2018, Reckitt’s Durex brand accounted for 30% of the 安全套 market in China. It is followed by the okamoto brand owned by the company limited by shares, and the jaisbon brand owned by renfu pharmaceuticals, with a market share of about 10%.

　　Some people believe that Renfu Medicine, as the only listed company with a 安全套 brand in the a-share market, and the owner of the well-known brand "Jieshibang", will benefit a lot from Lekang's production cut.

　　In 2017, Renfu Pharmaceuticals, through CITIC Capital, jointly invested US$600 million to purchase Ansell and returned to the track of 安全套. According to the investigation, the company is a holding subsidiary of Renfu Pharmaceutical, and directly owns 95% of the shares of Wuhan Jieshibang Health Products Co., Ltd.

　　The semi-annual report shows that as of the first half of 2019, Renfu Pharmaceutical's 安全套 business revenue was 816 million yuan, a year-on-year increase of 8.59%, net profit was 5.8433 million yuan, and gross profit margin reached 61.82%, making it the company's product sector with the highest gross profit margin.

　　The head of the Loves brand department told reporters that the Jesse brand is provided by Thailand, Japan and India in China.