The industry concentration is relatively low, and the "Big Four" leaders firmly hold a dominant position. In 2019, the CR4 market share of household paper products was 30.0%, an increase of only 2.6 percentage points compared with 2013. We have found that the market concentration of the household paper industry is relatively low, and the trend of differentiation among leading enterprises is relatively slow. We believe that this is mainly due to the relatively simple production process of household paper, the scattered forest resources in our country, and the fact that small regional household paper factories in various regions can also achieve small-scale production. At the same time, as a commodity with relatively strong homogenization attributes, some consumers are relatively sensitive to prices More inclined to local brand products with relatively lower shipping costs and relatively lower brand premium space.

Among the "Big Four", there is a trend of fluctuating market share. In the household paper industry, Xinxiangyin under Hengan International, Jierou under Zhongshun Jierou, Vinda under Vinda International and Qingfeng under Jinhongye have consistently held the top four positions in the industry. From 2013 to 2019, Vinda and Jierou saw relatively strong growth in their market shares, increasing by 1.2 percentage points and 2.0 percentage points respectively to 9.4% and 5.5%.

The consumer groups corresponding to the "Top Four" brands still have certain pursuits for the high quality represented by brand endorsements. We believe that although household paper products have a certain degree of homogeneity, the perception of their quality differentiation is relatively similar. That is, in the minds of most consumers, paper products with better toughness, thicker paper, less prone to shedding, and less chemical reagent residue are of higher quality. The recognition of this view is relatively high.

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