Wire and cable as the power transmission of main carrier, outside affected by domestic and foreign policies and prices of raw materials, because it is widely used in the industries of electric power, construction, automobile, communication and so on, inevitable and the downstream industry development are closely related. The policy and competition of wire and cable industry in China are as follows.

Inside and outside policy

In recent years, the country vigorously carries on urban power grid construction and transformation of rural power grids and urban rail transit construction, promulgated a number of favorable policies. The development of these industries will bring a large number of orders for the upstream wire and cable manufacturers. At the same time, due to the high fire caused due to the reason of wire and cable quality, to prevent major accidents from happening again, countries in the wire and cable industry and product standards control more and more strict, new technical standards continue to introduce. More information please check in 2015 the development of wire and cable industry environment analysis.

In foreign countries, on the one hand, China cable industry export volume larger policy of international economic organizations is large; on the other hand, emerge in an endless stream of anti-dumping investigation also on China's wire and cable manufacturers caused extremely adverse effects.

Competition analysis for wire and cable industry

Objectively said, China's wire and cable industry although output has leapt to first in the world, but in terms of technical content remains to be lacking, it is because of this. We currently see China some high-end market are foreign occupation, especially some of the technical requirements, process requirements are very high special cable still need to be imported from abroad. Among them, we found that increasing the proportion of foreign companies in China, although China's demographic dividend has been presented regression trend, increasing labor costs, but occupied high-end market of China's vast, there are still many foreign companies to sharpen his head into the Chinese market Riza.

Looking at the current high-end market in China, from European Nexans, Pirelli and from Japan's Furukawa, Sumitomo are in our cable market occupies a considerable share, the advantages of foreign companies in the market for high-end products more obvious. From the perspective of the future development, all walks of life to the wire and cable products demand will toward the direction of high performance, high quality, domestic enterprises in the competition of international enterprises gained a footing, must the gap on the performance of the products gradually narrowing and between the advanced enterprises in the world. Obviously, product performance is foreign cable companies to take root in China is also the root of core competitiveness, if the Chinese wire and cable enterprises to grasp core technology, in the next competition occupies more favorable advantages.

In the wire and cable industry in our country, in the industry in the absolute leading position in the enterprise including several well-known multinational companies, and the cable industry leading companies, such as Alcatel of France, Germany Prysmian, American general cable, Japan's Sumitomo cable, South Korea's LG; second group is the wire and cable industry in a leading position, but compared with the leading enterprises is a certain gap between the enterprises, and in some product areas share certain monopoly advantage of enterprises, such as the Far East cable, Shangshang cable, Hengtong cable. The third group is the other lack of features and competitiveness of enterprises, but also the vast majority of China's small and medium cable manufacturers.

At present, due to the domestic cable manufacturing enterprise technical quality, production capacity, the size of the gap between the production, under the situation of low level of competition, increasingly fierce competition, the price war has been very common, and thus lead to the decline in the quality of the products. And malicious competition of such a phenomenon only in the low-end market, put it bluntly, is its own people to play their own people, the market for high-end foreign companies did not threaten and influence. Therefore, in the face of the fierce market competition, facing the profit margins continue to decline in the low-end market, cable industry, manufacturers should through a variety of ways to reduce costs and control of fixed expenditure, strengthen the development of new technology, strong technical force in the wire and cable industry, good product quality enterprises will be in the future competition in an advantageous position. Also only in this way can we realize the transformation by the low-end market to high-end market is very close, so as to get rid of malicious competition and profit rate is inferior problem.

In addition, wire and cable companies must recognize that quality and technology, marketing, raw materials, internal management is the most important factor in determining the competitiveness of enterprises. Under the drive of the needs of the industry, wire and cable products toward the direction of high quality and high technology has become an inevitable trend, which companies can have advantages in product technology, you can in the low levels of price war come to the fore. In the case of product supply exceeding demand, the product performance and quality are the same, and the marketing tool becomes the important factor to determine the enterprise's competitiveness.. Smooth marketing channels, all aspects of service better companies in the fierce market can get a certain advantage. Also in the sharp rise in prices of raw materials, which companies can take reasonable measures to avoid the risk of rising prices of raw materials, can be an enormous advantage in the production cost, the competitiveness of enterprises has very important influence. Methods to avoid the risk of rising raw materials prices include: hedging, and customers sign flexible contracts and other methods. Finally, in the cost of raw material is almost, which companies can in internal management efforts to make a fuss, by raising the level of management to reduce production costs, improve product performance, you can in the fierce market competition advantage.

China wire and cable industry in the future development of thePrevious post:To promote the work site into Hengtian special cable group trademark strategy in Henan Province