Market & Supply Chain: The Cost Conundrum and the Shift in Distribution Channels

Core Dynamics: Core raw material prices have entered a volatile cycle, while the e-commerce transformation of industrial products is profoundly reshaping the procurement ecosystem.

The traditional peak season of "Golden September and Silver October" has failed to deliver the expected profit growth for seal material manufacturers, instead leaving them grappling with the widespread anxiety of "increased revenue but not increased profits." At the root of this predicament lies the volatile pricing of upstream raw materials. Fluorite, the primary feedstock for PTFE, has seen its supply-and-demand dynamics tighten significantly as it increasingly finds applications in strategic emerging sectors like new energy and semiconductors. Consequently, its price has continued to rise steadily throughout October. Meanwhile, soaring energy costs and rising logistics expenses have further intensified cost pressures across the manufacturing industry.

This structural shift in costs is accelerating the industry. "Good money drives out bad." Processes. Some small and medium-sized manufacturers, relying partly on low-price competition and offering products with low technological content, have been forced to cut production or exit the market as they struggle to absorb rising costs. Meanwhile, for leading enterprises, this situation presents both challenges and opportunities. They are now leveraging "Lean Production for Cost Reduction" and "Product Structure Upgrade" Two approaches are being taken to address this: on one hand, optimizing processes and improving yield rates; on the other hand, shifting resources toward product lines with higher added value and greater profit margins, leveraging technology-driven premium pricing to offset cost pressures.

On the sales front, a quiet yet powerful channel revolution is already taking shape. According to data released in October by leading industrial product e-commerce platforms, online procurement volumes of standard items such as sealants and PTFE tape have seen year-on-year growth rates exceeding 40% for several consecutive months. Behind this trend lies the growing influence of younger buyers and the increasing digitalization of purchasing behaviors. Younger engineering contractors and maintenance service providers are now accustomed to completing their purchases online—just as they would when shopping for consumer goods. “Search – Compare Prices – Read Reviews – Place Order” The entire process. They not only pay attention to price, but also place greater emphasis on product user reviews, the thoroughness of technical specifications, and the speed of logistics response.

This shift compels traditional sealing material companies to completely rethink their sales and service models. Building a dedicated e-commerce operations team, creating product content that aligns with online engagement trends—such as short video tutorials and live-streamed product tests—and strategically setting up regional warehouses to ensure "next-day delivery" or even "same-day delivery"—have all become indispensable core competencies. Today, channel digitalization is no longer a mere complement to offline business; instead, it has emerged as the critical battleground that will determine future market share.