Wire & cable industry e-commerce development analysis

editor:Zhong Hai wire & cable Co., Ltd. │ Release time:2019-05-31 

In recent years, the development of China's Internet technology can be described with each passing day, and the vigorous development of e-commerce has brought new opportunities to many traditional enterprises. The cable industry is a member of the traditional manufacturing industry, and a small number of enterprises are still in the marketing mode. On the original channel, the market was expanded by developing distributors. Most companies have already achieved sales transformation and implemented new marketing models with the help of e-commerce. The wire and cable industry under the “Internet +” has seen tremendous innovation and new vitality.

There are mainly three kinds of e-commerce models in the current wire and cable industry: First, the distribution model, that is, the purchase of products from manufacturers and then sold them to make a difference; second, the online store model, that is, the brand manufacturers or distributors use the e-commerce platform directly. Open online stores; third is the vertical e-commerce model, that is, brand manufacturers directly open online store.

From the perspective of the development of e-commerce in the domestic wire and cable industry, most wire and cable companies have chosen to use the e-commerce platform provided by the Internet to directly open the “shopping system model” when they are innovating e-commerce models. The addition of many wire and cable companies shows that the cable industry is actively transforming its online marketing attitude. The “online shop model” that combines the wire and cable industry with e-commerce has gradually become the mainstream development trend of the cable industry, and the outlook is preferred.

Practice has proved that if the traditional industry can make full use of the "Internet +" platform, it can effectively resolve some of the excess capacity. "Internet +" can not only expand the market for products, and have the effect of entering the market at a lower cost, improve the overall operating efficiency, and promote the transformation and upgrading of the industry; it can also narrow the distance between manufacturers and consumers, and can also bring the industry closer to the downstream. The distance of the enterprise, to maximize the market potential.

However, there is always the opposite of good things. Wire and cable is not a smooth process in the development of e-commerce. The competition in the traditional model also finds its way into the e-commerce model. Then, the development of e-commerce in the wire and cable industry is currently encountered. What kind of problem is it?

At present, there are more than 8,000 wire and cable companies in China, and the number of small workshops without business licenses may reach 10,000. China's wire and cable industry has witnessed vicious competition in the industry and continues to be subject to upstream raw material manufacturers and downstream procurement. Many new low-quality brand cables have flowed into the market, resulting in market confusion and malicious price bargaining, resulting in more SMEs and even large companies adopting lower product prices. Market competition has led to a decline in the quality of wire and cable. Some companies are unable to obtain legitimate profits by improving quality, and are unwilling to invest more money and manpower in quality management, resulting in serious homogeneity of commodities in many markets. The cable industry has stagnated in the development of e-commerce.