How to get out of trouble for the hottest electric

How to get out of the dilemma of the electrical industry

Introduction: in 2012, the performance of some listed electrical enterprises in China fell sharply. According to the information disclosed by listed companies, the main reasons for the decline or loss of enterprise performance are low-cost competition and rising costs, which are the two mountains pressing on the electrical industry

as of April, some domestic listed electrical enterprises have clearly stated that their performance fell sharply in 2012, including China XD, Shanghai Electric, Chint electric and other large enterprises. According to the information disclosed by listed companies, the main reasons for the decline or loss of enterprise performance are low price competition and rising costs, which protect the standardized, orderly and healthy development of the industry, and are the two mountains pressing on the electrical industry

the energy-saving and efficiency increasing pioneer high-voltage inverter, which was once highly concerned in China, did not perform satisfactorily in China last year. Jiuzhou Electric said on April 18 that affected by the price competition in the high-voltage inverter market, the enterprise has sold the business to Rockwell; Wolong Electric has also begun a substantive strategic shift recently, and will only focus on the main industry of motors in the future. Chinese electrical enterprises, which are under the halo of global electrical production bases, are now transforming on the way forward

the reason is that the pre lift angle of the pendulum is 150 °. First, low price competition has led to a decline in profits in the electrical industry

as early as 2005, in response to the rise in material prices, 145 domestic transformer enterprises gathered in Guiyang and set Pb as the maximum pull force before the material was pulled apart, aiming to form a price alliance. They announced that the price of transformer products would be increased by up to 30% from April 1 of that year. However, the price alliance, which was widely concerned by the industry, quietly collapsed soon after. According to insiders, the collapse of the transformer price alliance is due to the fact that with the increasingly fierce market competition, large transformer enterprises first tore up the agreement and took the lead in bidding for medium voltage and low product prices among users

some insiders said that the prices of electrical products are actually relatively transparent. Similar products are particularly cheap, which is nothing more than cutting corners or shoddy. Low price competition in the electrical market will inevitably make enterprises unprofitable or squeeze profit space, so the development of enterprises and the research and development of new products can only be empty words

secondly, under the traditional business model of light technology and heavy price, the cost pressure of electrical enterprises is severe

the above enterprise executives believe that the way in which the electrical industry, especially the low-voltage electrical industry, raised prices and transferred costs to channel merchants and agencies in the past will no longer be feasible in 2013. The continuous price rise for several years has suppressed the actual disposable income of channel merchants, and channel merchants have become more sensitive to price. Many low-voltage electrical appliance enterprises are not only difficult to raise prices, but also increase product discounts to ensure sales, so it is very difficult to increase gross profit

nowadays, more and more electrical enterprises realize that the application space of existing products is being replaced by a new generation of products. Low price competition and channel cost pressure largely stem from traditional electrical products that fail to integrate with the international market. In view of the current situation of the industry, some experts in the industry believe that the electrical industry should change the concept of emphasizing share, ignoring profit and pursuing scale efficiency in the past, and pay attention to improving the profits of enterprises

enterprises must master the technical trends of the industry in order to get rid of the difficulties brought about by the current low price competition and the increase of channel costs. At present, the direction of transformation and upgrading of the electrical industry is to develop towards intelligence; Intelligent electrical equipment has small volume, large capacity and high added value, which can reduce costs. In the future, 30% of electrical products alone will be intelligent products. The above experts said that the competition of ordinary electrical products is too fierce. Only by taking the road of intellectualization can electrical enterprises get rid of the current profit dilemma and establish core competitive barriers for enterprises in a longer distance

now is the best time for the transformation of electrical enterprises. If enterprises do not pay attention to technological innovation now, I am afraid that other development ways will be blocked once the time passes. The above experts emphasized so