Domestic cable technology upgrading and product innovation ability is insufficient, some production enterprises tend to pay only short money, resulting in the high end of the market. It is worrying that the special cables, such as ships and aerospace, are basically monopolized by foreign countries, and the technology investment is seriously inadequate. The domestic production is mainly based on the production of low technology ordinary cable products.
Experts say that even if demand for the cable market has opened up, there are very few local companies that can support such a large market. In addition to several large scale enterprises, the domestic cable companies are almost lower quality, small brand route, only long hovering in the low-end market competition, the market for high-end projects are often powerless.
Due to the low level of equipment in small and medium-sized cable manufacturing enterprises, the special cable manufacturers in China are hard to form core competitiveness and harder to resist the impact of the market. In recent years, the voice of the cable industry has been more and more intense for the market, especially in this year, because the profit margins of the cable industry are decreasing and the cost of production is increasing.
The low concentration is the root of the vicious competition and overcapacity of the cable industry. The current top ten cable production enterprises occupy the domestic market share of only 7%~10%, one of the largest cable companies market share is only 1%~2.5%, and the cable companies in Europe and the United States concentration reached more than 80%, low concentration has hindered the domestic cable industry development problem difficult to ignore. Some experts believe that in the face of the low concentration problem, only by increasing the resources strength of the integrated industry and expanding the market share of the enterprises can we increase the stability of the domestic wire and cable industry. The manufacturing scale of China's wire and cable industry is increasing rapidly, developing in extensive and expanding in the irrational. While technological progress and product upgrading slow, repeated construction is very serious, leading the entire industry serious excess capacity, most of the enterprises in the low-end market, shopping, melee, high-end market, high-end brands fall, fake profits disaster caused by flooding water.
Our cable manufacturer is the meager profits, the reason is that the product of China's wire and cable industry mainly low-end, unable to achieve product development and process as the German Price Man, France, Japan and other foreign Nexans Furukawa cable oligarchs control level.
The development and production capacity of high-end products in China is insufficient, resulting in serious problems in the industry and lack of unified planning, resulting in a serious surplus of capacity. At present, the development of China's wire and cable industry is the extensive mode of production management, the majority of small and medium-sized enterprises pay more attention to short-term economic effect, few companies willing to invest manpower and funds for high-end product development and production, thus causing the vicious spiral only in the low-end market competition.
From the developed cable manufacturers in the United States, France, South Korea general cable LS group enter Nexans China layout, for the special cable market, occupy the high-end market has become their common goal. So it can be seen that the development of special cable is a powerful means of "abandoning low from high".
Then the domestic cable enterprises to advance into the high-end market should start from which aspects, this problem also makes some cable production enterprises feel confused. In fact, from the rail transportation industry, shipbuilding, aerospace industry, new energy industry, offshore oil and natural gas project scale expansion and market demand surge, the development and production of special cables is a convenient way.
Data show that the sales of special cable now account for about 30% of the total sales of the domestic cable market. According to rough estimates, the sales of special cable products in China will be around 40 billion yuan per year. And with the big construction in all walks of life, the demand for special cable will be greater.
Of course, the threshold is low special cable cable to the threshold of the high, but as a large cable production enterprises R & D capability, have sufficient capacity and funding to increase research and innovation of special cables, thereby the opportunity to change the domestic cable industry concentration is not high situation.
If domestic cable manufacturers can not make efforts, from the management, product, technology, market joint force, to struggle with foreign giants, then wait for Chinese wire and cable manufacturing enterprises only two possibilities, one may be defeated, and shut down; another possibility is that night changed by foreign giants the acquisition and merger. "Domestic cable enterprises can only achieve new breakthroughs in the competition of China's wire and cable industry in the global market by increasing R & D efforts, playing local brands, competing for differentiated competition and integrating industry resources. The head of a cable company said with emotion.
