At present, China has more than 9,800 various types of wire and cable production scale enterprises, and small-scale enterprises are numerous, with an annual output value of 900 billion yuan, becoming the world's largest wire and cable producer.
Despite its high production capacity, China's cable industry still has unreasonable product structure, overcapacity in the industry, and disorderly vicious competition in the market. In particular, wire and cable products are counterfeit, shoddy, cut corners, shoddy, shoddy and so on. To a certain extent, it has affected and hindered the development of China's wire and cable industry.
What are the main problems in the current wire and cable industry?
1. Low investment threshold, different scales of enterprises, overcapacity
The low investment threshold for wire and cable has caused a large number of enterprises to flood in, causing enterprises in the industry to “excessively excessive”. It is understood that there are more than 7,800 large and small enterprises in the wire and cable industry, with a production capacity of more than 100 billion. At present, the demand for wire and cable in China is only 700 billion, a serious surplus;
2, the industry concentration is low, the product is sub-charged into a normal state
Due to the low threshold, the concentration of the industry is getting lower and lower, and some of the “shopping companies” that do not have the necessary means of production capacity, quality control and testing are able to fill the industry. It has become the source of counterfeit, shoddy, and shoddy cable products.
3, low-cost sales, interference with market order, buried hidden dangers
By lowering the sales price and other means to disrupt the market competition order, non-standard products are prevalent, not only burying huge security risks, exacerbating disorderly competition within the industry, but also making the production companies and dealers in a difficult way, thus affecting the image of the entire industry. development of.
"Product quality is the life of wire and cable enterprises, and is an important indicator of whether the wire and cable industry is healthy." At the China Cable Materials Conference, Wang Shen, a senior engineer of the National Wire and Cable Quality Supervision and Inspection Center, pointed out.
Domestic large enterprises only account for 2.5% of the market share. More than 80% are robbed by foreign countries.
From the perspective of the development level of the entire industry, the cable industry has low concentration, scattered technology and low technology. On the contrary, the cable industry in western developed countries has undergone development for hundreds of years, and the polarization is obvious, and the market concentration is relatively high.
According to the statistics of the National Bureau of Statistics, there are more than 7,800 wire and cable enterprises in China, of which SMEs are the mainstay. The largest market share of strong enterprises is only 1% to 2.5%. At the end of 2009, the market share of the 19 largest cable companies in China was only It accounts for 11.7% of the whole industry, while the top three companies in the US have a market share of 54%. The top 7 companies in Japan account for 86% of the industry, and the top 12 cable companies in the UK have a concentration of 95%. .
Concentration comparison of market share of cable companies in various countries
At present, the direct consequence of China's numerous enterprises and low industrial concentration is the decline in industry profits and overcapacity. The adjustment and integration of wire and cable is the mainstream trend for some time to come.
This also determines the fierce competition in the internal market of China's cable industry, and the lack of competition in the international market. How to improve the domestic market environment and enhance international competitiveness is an important issue in the industry.
Although the competition in the cable industry is relatively full, from the perspective of market segments, the high-end market has the characteristics of strict technical quality and high barriers to entry. There are not many enterprises that can participate in the above-mentioned market competition. Most of these enterprises are full of orders. The profitability is good.
On the other hand, foreign-funded enterprises are still in a leading position in the high-end wire and cable market, occupying a considerable share in China's cable market, and foreign-invested enterprises have obvious advantages in the high-end products market.
Vicious competition, quality is a common problem? How do domestic SMEs break?
Vicious competition and disorderly competition are the quality environment faced by small and medium-sized wire and cable companies. Market confusion is one of the important factors affecting the quality improvement of small and medium-sized wire and cable enterprises. For example, the proliferation of counterfeit and shoddy products and vicious price hikes have prompted small and medium-sized wire and cable companies to take more and lower prices to participate in market competition. At present, some small and medium-sized wire and cable companies cannot obtain legitimate profits by improving product quality, which has led to a considerable number of small and medium-sized wire and cable companies not willing to invest energy and resources in quality management. Not only the external environment is bad, but the quality concept is also a fatal problem for many small and medium-sized cable companies.
How to break the bureau in China? Let’s take a look at the distribution of China's cable and wire industry – the geographical distribution of enterprises is obvious. Mainly concentrated in East China, North China and South China. Current wire and cable companies should do the following:
1. Put quality and brand first, face up to the objective cost and profit of enterprise product manufacturing, face up to the negative consequences of the lowest price bid, and gradually optimize the market competition environment.
2. Improve understanding of international standards, national standards, industry standards and testing requirements.
3. Formulate enterprise standards that are higher than national standards. In addition to extending the basic requirements of national standards, it is also necessary to demonstrate the individuality in terms of personalization and enhance the competitiveness of enterprises participating in the market.
4. Establish enterprise quality integrity, improve industry self-discipline, strengthen enterprise quality supervision, and promote the healthy development of wire and cable raw material industry.缆原材料产业健康发展。