In recent years, due to the difficult survival of cable companies, many companies have switched to production and diversified operations, among which there are many well-known large companies. The proportion of diversified industries is gradually increasing, and the main industry is not prominent, resulting in the competitiveness of Chinese cable companies. Constantly lower. The words “multiple, chaotic, small, and bad†can be said to be a summary of the current status of China's wire and cable development.
First, the development status of wire and cable industry
"More" mainly refers to the number of domestic companies that produce wire and cable products. In 2009, the total number of wire and cable companies in China was nearly 10,000, and there were nearly 300 companies in Henan alone. Many companies, indicating that the market concentration of wire and cable industry is low, has not yet formed a scale.
"Chaos" means that the wire and cable market in China is chaotic. At present, domestic wire and cable products are mixed and there is a lack of uniform standards. Coupled with excess capacity in the wire and cable industry, the vicious competition in the industry has increased, resulting in many fake and shoddy products on the market. All in all, the above factors have led to confusion in China's wire and cable industry market.
"Small" means that China's wire and cable companies are small. China's largest domestic cable market share is only 1% - 2.5%. As far as Henan Province is concerned, less than 20 large-scale enterprises are among 300 cable manufacturers. The three cable manufacturers in the United States accounted for 54% of their domestic market share. Seven cable companies in Japan accounted for 86% of the domestic market, and 12 companies in the UK accounted for 95%.
"Poor" means that the quality of products in the domestic wire and cable market is poor. At present, the number of home-made cables sold on the market is uneven, of which nearly 40% are non-standard lines; there is also a part of the counterfeit national line, and only a few of them are real national lines.
The overall situation of multiple, chaotic, small, and poor has exposed the immaturity of China's wire and cable industry.
Second, the development direction of wire and cable industry
The future development of wire and cable industry will focus on the following four aspects of integration:
1, product integration
Product integration is mainly the integration of product lines. Enterprises should carefully consider the company's resource conditions, capabilities, and business advantages, and analyze the input of each product, the profitability of the unit product, the development prospects of various products (market growth rate, the relative market share of the company), and so on. Streamline and eliminate; At the same time, concentrate on superior resources, focus on several types of superior products, create superior products, increase market share, build brands, and thus improve the operating efficiency of enterprises.
2. Talent integration
The development of wire and cable companies depends on experienced, skilled and skilled technicians and production workers, and depends on managers with rich experience in production management. Therefore, talent is an important resource for wire and cable companies. With the increasingly fierce market competition, wire and cable companies will continue to win the fittest, which will also greatly promote the flow of talent in the industry and achieve the integration of talent resources in the industry.
3, fund integration
The wire and cable industry is more dependent on funds. Affected by the prices of raw materials such as copper, aluminum and plastics, cable manufacturers are facing tremendous cost pressures. The shortage of funds and tight funding chain have become an important factor restricting the development of small and medium cable companies. With the increasingly fierce market competition, mergers and acquisitions and capital integration of cable companies have become an inevitable trend.
4, equipment integration
Production equipment is a fixed asset of an enterprise and an important resource for the company. Many products produced by companies are accidental and infrequent. Therefore, part of the production equipment of the company will be idle for a long time. The idleness of resources is the biggest waste. Therefore, the company must carefully analyze the use of related equipment, and integrate the company's production equipment and production lines.
How can China's wire and cable market explore the market?
Only by concentrating resources and specializing in the main business can we make the cable industry bigger, stronger, and better. Only focusing time on the cable industry will help foster professional talents and technology. Many areas of the cable manufacturing industry are high-tech intensive industries. Without a strong professional and scientific team, it is impossible to carry out technological innovation and scientific research and development.
For China's cable economy to integrate into the global market, it needs more standard sense of competition and a sense of national responsibility. Chinese companies must also learn to use technology strategies that compete with standards and rivals. If China's international bidding for large projects, but also set national standards, the future market competitive advantage will be clearly reflected. The facts show that nothing can be done as a result. In the next few years, the national cable manufacturing industry will continue to experience a difficult stage. There must be a number of backbones, always focusing on the development of the cable industry, and supporting the banner of China's national cable industry. The development of specialization can be extended along the upstream and downstream of the product and industrial chain. The development space is actually huge.
When many Chinese companies opened up foreign markets, we discovered that in addition to a series of trade protection barriers, foreign countries often set technical barriers through the formulation of technical standards. Technical barriers also allow Chinese companies to pay enough production costs and marketing costs. For example, to enter the US market to pass UL certification, to meet European standards in Europe; some European industries even have to revise a standard every two years, the purpose is very clear, that is, allow you to turn around their standards. China's standards are far behind the changes in emerging markets. Front-line products such as wind power, nuclear power, optoelectronics, and power grid smart grids do not have the early intervention of the national standard.
In short, as the cable industry gradually matures and industry competition intensifies, corporate mergers and restructuring will inevitably lead to the reintegration of products, talents, funds, and equipment within the industry and between companies.
First, the development status of wire and cable industry
"More" mainly refers to the number of domestic companies that produce wire and cable products. In 2009, the total number of wire and cable companies in China was nearly 10,000, and there were nearly 300 companies in Henan alone. Many companies, indicating that the market concentration of wire and cable industry is low, has not yet formed a scale.
"Chaos" means that the wire and cable market in China is chaotic. At present, domestic wire and cable products are mixed and there is a lack of uniform standards. Coupled with excess capacity in the wire and cable industry, the vicious competition in the industry has increased, resulting in many fake and shoddy products on the market. All in all, the above factors have led to confusion in China's wire and cable industry market.
"Small" means that China's wire and cable companies are small. China's largest domestic cable market share is only 1% - 2.5%. As far as Henan Province is concerned, less than 20 large-scale enterprises are among 300 cable manufacturers. The three cable manufacturers in the United States accounted for 54% of their domestic market share. Seven cable companies in Japan accounted for 86% of the domestic market, and 12 companies in the UK accounted for 95%.
"Poor" means that the quality of products in the domestic wire and cable market is poor. At present, the number of home-made cables sold on the market is uneven, of which nearly 40% are non-standard lines; there is also a part of the counterfeit national line, and only a few of them are real national lines.
The overall situation of multiple, chaotic, small, and poor has exposed the immaturity of China's wire and cable industry.
Second, the development direction of wire and cable industry
The future development of wire and cable industry will focus on the following four aspects of integration:
1, product integration
Product integration is mainly the integration of product lines. Enterprises should carefully consider the company's resource conditions, capabilities, and business advantages, and analyze the input of each product, the profitability of the unit product, the development prospects of various products (market growth rate, the relative market share of the company), and so on. Streamline and eliminate; At the same time, concentrate on superior resources, focus on several types of superior products, create superior products, increase market share, build brands, and thus improve the operating efficiency of enterprises.
2. Talent integration
The development of wire and cable companies depends on experienced, skilled and skilled technicians and production workers, and depends on managers with rich experience in production management. Therefore, talent is an important resource for wire and cable companies. With the increasingly fierce market competition, wire and cable companies will continue to win the fittest, which will also greatly promote the flow of talent in the industry and achieve the integration of talent resources in the industry.
3, fund integration
The wire and cable industry is more dependent on funds. Affected by the prices of raw materials such as copper, aluminum and plastics, cable manufacturers are facing tremendous cost pressures. The shortage of funds and tight funding chain have become an important factor restricting the development of small and medium cable companies. With the increasingly fierce market competition, mergers and acquisitions and capital integration of cable companies have become an inevitable trend.
4, equipment integration
Production equipment is a fixed asset of an enterprise and an important resource for the company. Many products produced by companies are accidental and infrequent. Therefore, part of the production equipment of the company will be idle for a long time. The idleness of resources is the biggest waste. Therefore, the company must carefully analyze the use of related equipment, and integrate the company's production equipment and production lines.
How can China's wire and cable market explore the market?
Only by concentrating resources and specializing in the main business can we make the cable industry bigger, stronger, and better. Only focusing time on the cable industry will help foster professional talents and technology. Many areas of the cable manufacturing industry are high-tech intensive industries. Without a strong professional and scientific team, it is impossible to carry out technological innovation and scientific research and development.
For China's cable economy to integrate into the global market, it needs more standard sense of competition and a sense of national responsibility. Chinese companies must also learn to use technology strategies that compete with standards and rivals. If China's international bidding for large projects, but also set national standards, the future market competitive advantage will be clearly reflected. The facts show that nothing can be done as a result. In the next few years, the national cable manufacturing industry will continue to experience a difficult stage. There must be a number of backbones, always focusing on the development of the cable industry, and supporting the banner of China's national cable industry. The development of specialization can be extended along the upstream and downstream of the product and industrial chain. The development space is actually huge.
When many Chinese companies opened up foreign markets, we discovered that in addition to a series of trade protection barriers, foreign countries often set technical barriers through the formulation of technical standards. Technical barriers also allow Chinese companies to pay enough production costs and marketing costs. For example, to enter the US market to pass UL certification, to meet European standards in Europe; some European industries even have to revise a standard every two years, the purpose is very clear, that is, allow you to turn around their standards. China's standards are far behind the changes in emerging markets. Front-line products such as wind power, nuclear power, optoelectronics, and power grid smart grids do not have the early intervention of the national standard.
In short, as the cable industry gradually matures and industry competition intensifies, corporate mergers and restructuring will inevitably lead to the reintegration of products, talents, funds, and equipment within the industry and between companies.
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