n recent years, with the rapid development of the power industry, the wire and cable industry in China is also growing. At present, the scale of wire and cable enterprises in China is nearly 10,000, of which 97% are small and medium-sized enterprises, and the average utilization rate of equipment is 30%-40%, which is far lower than the international level of equipment utilization rate of over 70%. There are still many problems in the industry. Therefore, the development trend of wire and cable industry has attracted much attention from the industry.
Brand and marketing network become key elements of competition
At present, there are a large number of enterprises in the wire and cable industry in China, and market competition is still dominated by price competition. Some leading companies in the industry have gradually emerged from low-end price competition and participated in the mid-to-high-end market competition by continuously strengthening branding and expanding marketing channels. With the continuous advancement of industrial restructuring and the upgrading of market segments, brands and marketing networks will become the key factors for competition among enterprises in the industry. Industry-dominant enterprises will also gain greater market share and broader space for development through their competitive advantages in brand, capital, scale, marketing, and R&D. The industry concentration will be further enhanced.
At present, China's wire and cable production and sales in the world, but the industrial concentration is low, companies in the product variety, selection technology, there is a serious convergence, the lack of core competitiveness, forming a homogenization of the industry competition. By the end of 2014, China's wire and cable industry has reached 3,863 enterprises above designated size, most of which are small and medium-sized enterprises with relatively weak competitiveness. The low degree of industry concentration and the highly decentralized pattern are not conducive to the sustainable development of the industry. Structural adjustment has become a development trend. In recent years, leading companies in the industry have further expanded their scale and increased their competitiveness through mergers and acquisitions, which has, to a certain extent, promoted the restructuring of the industry. With the escalation of competition in the industry, the degree of industrial concentration in the future will further increase.
Transformation and upgrade make quality become the main player in competition
Transformation and upgrading are key measures to improve quality competitiveness. From the development history of countries all over the world, when economic growth slows down or even declines, the development of various industries will inevitably go through mergers, acquisitions, upgrades, transformations, etc., which will lead to an increase in industry concentration, and China’s cable industry is no exception. . In recent years, experts have also emphasized the transformation and upgrading of the wire and cable industry. The transformation and upgrading they emphasize is the integration and upgrading under the guidance of market demand.