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China's low-voltage electrical appliance market is "developed with disease"

With the continuous expansion of domestic power facilities, the demand for low-voltage electrical appliances in China has been expanding in recent years. However, while the low-voltage electrical appliance market is developing well, the market also has various problems.
First, the overall production capacity of domestic enterprises is backward.
At present, China's low-voltage electrical appliance manufacturing enterprises are mainly concentrated in Beijing, Tianjin, Liaoning, Shanghai, Jiangsu, Zhejiang, Guangdong and other places. While promoting the development of the national economy, they also exposed many problems.

The first company is small and over-sized. At present, among China's low-voltage electrical appliance manufacturers, there are only a few dozen large-scale enterprises with annual sales income and total assets of more than 500 million yuan, most of which are small and medium-sized enterprises, which leads to the lack of economies of scale and competitiveness of enterprises; The number of production enterprises has grown from more than 600 in the early days of the founding of the People's Republic of China to thousands of companies today. The number of enterprises is too large, resulting in excessive economic resources and inefficiency.

The structure of the second region is converging and the construction is repeated repeatedly. Due to the blind project and paving, the low-voltage electrical industry in China has serious regional assimilation, low-level repeated construction, resulting in overproduction of products, low utilization of energy and raw materials, low economic returns, and regional protection and vicious competition.

It can be seen that compared with the international advanced large-scale manufacturers, low-voltage electrical appliance manufacturers have great differences in overall technology and production level, especially with the upgrading of market demand, major technical equipment and high value-added products that are in short supply in the market will Continue to be favored, which will also test the technological upgrading capabilities of domestic enterprises, research and development of high-end electrical products, and become the main success factor for domestic electrical companies to improve their competitiveness.

However, after decades of development, domestic enterprises have accumulated a lot of technology and production strength, and are still full of hope for future development. They can still occupy most of the market in China.

Second, the market competition is fierce

Due to the increasing demand for low-voltage electrical appliances, many large foreign companies have increased their investment in the field of low-voltage electrical appliances, and at the same time they have developed high-end products, they have also entered the low-end market in China, resulting in more intense competition in the industry. The impact of foreign brands on domestic enterprises can not be underestimated, which has largely restricted the development of domestic enterprises, and currently the high-end products are still based on imported brands.

The situation of price competition in the industry is still continuing, and the economic benefits of most SMEs in the industry are not small. Fortunately, in recent years, many companies in the industry have increased their sense of urgency, developed their internal strength and strive for development, overcoming the increase in raw materials and labor costs, financing difficulties, reducing product management costs, increasing equipment technology upgrades, and developing new products. Strengthening the effective management of cost management and cost control has presented a good atmosphere and promoted the sustainable development of enterprises.

Third, the network sales structure has not been scaled up.

In China's fast-growing Internet, online sales have already affected all walks of life, but the electrical industry does not seem to have formed a climate. At present, Taobao and Tmall occupy a certain market for online shopping in the electrical industry, but in general, home improvement electrical products. It seems that the comprehensive and abundant supply of electrical mro malls like the legendary mall and industrial electrical distribution network are very good. It can be seen that the online shopping market of the electrical industry still has great development potential.

The scattered demand in the electrical industry is very large. Many of the habits that are not purchased online should be the problem of being cheated to buy fakes, but if the qualified merchants provide the same online supply channels as the industrial electrical distribution network, and guarantee the quality of the products and High-quality services such as supply speed, I believe that the online shopping market can have a very prosperous image.

Fourth, the imbalance in the development of distributors

There are thousands of domestic electric distributors, but the strength of each other is very large, and there are many mixed goods, and there are even many counterfeit goods in the market. Therefore, the entire distribution system still has a chaotic image. The competition is too fierce and the market is difficult to regulate.

This article is transferred from: China Industrial Electrical Network


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