Solid surface material is a kind of new decoration surface material. Its consumption is considerable in Europe, USA and other sophisticated markets. Besides, in such new markets as China mainland, Korea and Taiwan, its potential consumer group is growing rapidly. Substituting marble, firefighting panel, glass and other traditional materials, it has become major surface material for household cabinets and bowl tables and counters in public buildings.
　　The market demands of solid surface material are growing rapidly, but we must recognize clearly that solid surface material market will inevitably follow general rules of market development.
　　In his book Company Positioning, Mr. Jack Tesmer, an enterprise management master of USA, divides markets into such four types as frontier market, jungle market, battleground market and kingdom market, and makes an analysis of market situations of a large number of industries and products in different historic periods for demonstrating the generality of such four market types. As shown in the attached figure, the competitive degree and complexity of jungle market are the highest, whereas those of kingdom market are the lowest.
　　We make an analysis of the developmental history of China's solid surface material market as follows:
　　From 1995 to 1996, a few professionals and persons of keen market insight introduced production process and equipment of solid surface materials from USA. They began small-quantity production and launched products into market after material localization and equipment improvement. During the excessive profit period, solid surface material was a completely new and expensive product for a new market in China. The retail price of cabinet counter toped exceeds 1500 yuan/m and main consumers were returned students and rich people. However, its sales was limited, and a considerable market development expenses including goods supply, free samples, etc. were required for elevating customers' awareness of the product. Therefore, it is frontier market period, which characterizes less competition, high profits and unstable market.
　　With market development and product popularization, technicians and salespersons of some plants, plus other enterprising people, set up new plants. The industry entered jungle market period around the year of 2000 after a 5-year frontier market period. Statistics show that there were only less than 5 manufacturers in 1996, and about 10 in 1998; by 2000, over 50 had been established; in 2004, manufacturers have exceeded 300.
　　As the number of manufacturers increases rapidly, products and service become more and more market-oriented. Many of local manufacturers even face end-users directly. After 5-year market initiation period, solid surface material entered a rapid development period, during which its sales double every year. For example, the consumption of 1998 is 500,000 sheets of standard panels (2440*760*12.7mm) and that of 2003 tops 2.5 million sheets. The period characterizes market enlargement, fiercer competition, the improvement in the quality of products and before-sales and after-sales service, and sharp reduction of prices, which is the most significant. The mainstream retail price of finished products of counter tops was decreased to 500 yuan /m and engineering supporting price was even as low as less than 400 yuan/m in early 2004. Manufacturers and distributors compete disorderedly, just like scuffling in jungles. All competitors faced the situation: sharp profit decrease, cost and expense increment, continuous appearance of competitors, and extreme market complexity and uncertainty. Every competitor is struggling for survival.
　　Jungle market did not last long. The market began to reorganize in 2003. Large world-famous companies acquired Chinese companies or set up sales companies and participated in various exhibitions for entering Chinese market. Appearing with the image of “a strong competitor”, they certainly do not want to be members competing disorderly with each other in jungles and exhausting themselves in endless fight. They will surely fight for shares of end-user market on their strength of brand and capital and clear the market so as to guide the entrance to battleground market period. It is estimated from current development trends that year 2005 will be the turning point from jungle market to battleground market. Major international companies and a few gradually growing domestic enterprises will become the controllers of the market. Carrying out comparatively large-scale production and earning low but stable profits, they will make orderly competition and possess relatively stable customers.
　　The time of entering kingdom market period depends on the developmental situations of competitors in battleground market. If a small quantity of companies are able to occupy a majority of market share, eliminate other competitors, and become market rulers, the market will naturally enter kingdom market period. However, it needs huge patience and ability and enough time.