Cable enterprises need to upgrade and upgrade

With the rapid development of China's wire and cable market, the overall level of the industry has been improved, but at present there is still no big but not strong circle. Therefore, the high-end cable with large profit margin is undoubtedly the domestic cable for low-end melee. The enterprise injected a "strengthening needle." How to jump out of the low-end "Red Sea" and be close to the high-end "Blue Ocean" has become a problem that all cable companies need to think about.

Overcapacity still exists

According to He Xiaolong, Director of the Quality Management Department of the Department of Industry and Information Technology of the Ministry of Industry and Information Technology, there are many real problems in the Chinese cable industry. First, there is no balance. Normally, after the market competition, it will form the leading enterprise of the first tier. At present, China's wire and cable industry has not completely formed the structure of the first echelon. It is in the process of development and has not yet formed a world-class brand.

For the entire cable industry in China, the task of resolving excess capacity is relatively heavy. He Xiaolong said that a lot of excess capacity cannot be fully utilized. Although the country has not included the cable industry in its guidance on resolving the contradiction of serious overcapacity, the overcapacity task that the cable industry needs to alleviate is relatively heavy in the entire industry.

Zhao Peijie, general manager of Jiangsu Yongding Co., Ltd., “In recent years, companies have continued to develop and innovate. At this time, the entire market is also changing. The homogenization phenomenon in this industry is very serious, such as high-end wire and cable products There is a serious lack of variety, but the low-end varieties have a lot of excess capacity. This is also true in the communications cable industry."

Transformation and upgrading are imminent

In the past, the development brought about by the scale expansion of the industry has been unsustainable, and the transformation and upgrading of the industry have become even more urgent. Compared to traditional power grids, a smart grid built on the basis of a new generation of information and communication technologies can realize energy production, storage, transmission, and sharing intelligence, and represent the key direction for future value transformation in the power industry. After the planning and development of the "12th Five-Year Plan" period, the smart grid project has been gradually separated from the "test" and "demonstration" stages. The future market application space and development prospects will be incalculable. As the main platform for optimizing the allocation of energy resources, the development boom of the smart grid will provide excellent opportunities for the development of the cable industry.

“The price of copper has been declining since 2012, and the profit margin of wire and cable companies has been further compressed. This year's wire and cable industry situation can be described by increasing production without increasing sales,” said Zhu Hongxiang, general manager of Jiangsu Shangshang Cable Group Co., Ltd.

Jiang Xipei, Chairman of the Board of Directors of Far East Holding Group, said that innovation can not be achieved without technological innovation. Most innovations now are cloning and infringement. There is nothing wrong with imitation, but you must have your own intellectual property and have your own innovation. In this era of technology being king, perhaps the future technology is to lead the important aspects of economic and social development. Whoever breaks the ground will be able to succeed. Second, there is also a need for business model innovation. The traditional sales of "leather bags" have been difficult to maintain. If companies do not take the path of combining product management and capital management, and do not combine the domestic market with the international market, and do not attach importance to quality and brand, there is no systematic ability to compete. It is indeed difficult for companies to survive in the future.

Sun Lu, general manager of cable network, believes that the overall direction of “transformation and upgrading” of the wire and cable industry should shift from the low end of the value chain to the middle and high end of the value chain, from the input of resource elements to the drive of innovation, and from cost competition to quality technology brand service. Specifically, it should start with several aspects: first, high-end cable manufacturing, focusing on high-value links such as R&D, design, standards, marketing networks, supply chain management, and brands; secondly, cable companies are going international. Explore the markets of developing countries such as the Middle East, Africa and Southeast Asia; tap existing and potential markets such as high-end electrical equipment, intelligent control and digital informatization, offshore engineering and resource exploitation, offshore wind power, photovoltaic, nuclear energy, and energy storage. There is also an industrial e-commerce platform. E-commerce has become an overall trend in all walks of life. The wire and cable industry is no exception.