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How long can the vicious competition in the low-end cable market last?
Time:2017-12-21
In recent years, the accident caused by the quality of the cable products is not uncommon, which poses a serious threat to the life and property of the masses. The fire problem caused by the quality of cable products, has also been highly attention to national quality supervision department, and appeal to the cable industry to "live", responsible for the user, pay attention to the quality, and through regional checks and other means, to crack down on some of the illegal cable production enterprises.

Although each sample can be found in individual cable cable manufacturers are not qualified, but often the number is not much, is still in a "bad" state. This is not difficult to understand, because the cable production enterprises have greatly promoted the promotion of local GDP, so it is not difficult to understand the protection of the local cable production enterprises. Even in the exposure of some industries, we often see some cable manufacturers to make the unqualified cable products flow to the market by buying local quality inspection departments and so on, which makes consumers feel angry and uneasy.

The reason why the number of illegal cable enterprises is reported in the process of sampling is judged by the market. The current market is the domestic wire and cable is chaos prone, fake, shoddy, shoddy, crudely made phenomenon is known, and the author visited the market found that the cable products sell some hardware market, despite the low price, but most are not qualified, but sales are still popular.

This phenomenon is the unspoken rule because of competition of cable industry is "low price competition", is often the cable products cheaper more favored by consumers, many cable procurement units clearly know the quality of cable products unqualified, but still buy, because the cable products in the application process, is generally not a problem in short time in. It often takes a few years to wait until the cable is aging or anything else, in a more intense way, such as a fire.

It can be seen that although China's wire and cable industry has surpassed the United States and become the largest, the largest and fastest growing market in the world, China's wire and cable industry is in urgent need of recuperating the disorder of the current market. Otherwise, the Chinese cable market can only be maintained in the "big but not strong" situation, and for the development of the domestic cable market is extremely unfavorable, and cable industry as supporting industry of the national economy, is widely used in various fields of national construction, although the cable look inconspicuous, but are often able to determine a the success of the project, should not be ignored.

In the "12th Five-Year" plan, China's industries have ushered in a new round of development, rapid urbanization, city rail transportation ushered in the new development, the construction of new energy to accelerate the pace of the rapid development of aviation, shipbuilding, and smart grid construction, accelerate UHV projects have been put into construction, it will create a huge market for the wire and cable industry, data show that Chinese wire and cable industry also will be higher than the growth rate of national economy continued rapid development.

According to estimates, "12th Five-Year" and during the next 10 years of GDP growth will be above 7%, CPI at around 3%, the average annual increase in nominal GDP value above 10%, the total amount of GDP after ten years will reach 140% now, in 2010 GDP total 36 trillion and 500 billion yuan, to 2020 will reach 51 trillion yuan, if taking into account the slow appreciation of the renminbi against the dollar (the average annual appreciation of 2.7% to about 5.1, 2010), GDP Chinese area will reach $10 trillion, about $7000 per capita.

Over the past ten years, the total output value of wire and cable industry is growing faster than GDP growth 10-15% estimates, by 2020 the wire and cable industry output value of a conservative estimate of more than 3 trillion yuan, the radiation of wire and cable wire and cable output accounted for the total output value of the ratio is not high, with the development of science and technology and social progress and the improvement of living standards, the requirements of environmental protection. People change the understanding of high quality new products, the advanced high performance cable demand will continue to expand.

In the face of such a large market, the domestic cable industry should seize the opportunity to strive for a subversive development. But the situation is not so ideal, but is caused by the China wire and cable industry blind investment and increasing serious excess capacity, the average operating rate of less than half, especially in recent years, the production scale of investment control, all kinds of cable production line of the vast majority of products blossom everywhere, serious market price, pile up in excess of requirement, lack of management, leading to the market the competition is fierce, coupled with rising raw material to bring pressure on the operation, the fake and shoddy, shoddy, shoddy phenomenon, crudely made industry product quality level It is often seen., the situation is very serious.

It is the leading cable production abroad such as France, Germany, the United States general Price Man Nexans cable have entered the China, occupy the high-end market China cable, cable and disorderly competition of domestic manufacturers in the low-end market instead of the price war, and clear the mind in the shoddy quality inspection departments in relation to take into account the new product research and development. In the long run, a vicious circle has been created. Every business has been bundled by competitors and market. If we don't take bad competition means, it will be difficult to make profits. If there is no profit, businesses will not be able to run.

But the market is cruel, which can't meet the market demand, and the enterprises will be eliminated. The high-end cable market has already been so, although the middle and low end market is bogged down.



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