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Analysis: the gap between domestic and foreign electric wire and cable industry

From:Guangzhou Ronde Industrial Co., Ltd  Date:2014-09-28 20:22:51 Hits:1396 Belong to:Industry Trends

    With the rapid rise of Chinese economy, China's wire and cable industry has been rapid development, now ranks among the world's manufacturing power. The development of the industry is facing important opportunities for development, is also facing difficulties and challenges, compared with western developed countries, the wire and cable industry, the overall development situation of wire and cable industry in China is not optimistic, the innovation of enterprises, competitive ability needs to be improved, at the same time, more reasonable planning to guide the future development of the industry.

    Wire and cable industry concentration degree is low

    The domestic wire and cable industry with Europe and other wire and cable manufacturing countries, the situation of the industry concentration degree are different. The domestic low industrial concentration problem is very prominent. In the ninety's of last century, with the growth of the market slow or decline, increased competition, equipment utilization rate of decline, wire and cable products market gradually to the high-end area of professional development, in the low-end field gradually tend to homogenization of competition. The polarization of the development trend of the market has led firms to re-examine its own development strategy, and constantly adjust to the cable industry in Europe and the United States, Japan and other countries by different restructuring, completed the industry from decentralized to centralized process, industry which has undergone fundamental changes.

    Europe through a large number of strategic mergers and restructuring activities, have a choice to enter the high-end domain or exit some homogeneous field, optimization of product mix, highlighting the advantage in the market. The European number of multinational giants is dominant, the production base is distributed in many countries, rapidly increasing share in the global market, ensure the equipment utilization rate, the cable market can fully adapt to the highly competitive. Draka in the last century eighty's before the original generic cabling manufacturer in Holland is a small, 20 years in, through small cable enterprise more than 20 acquisitions in Europe and elsewhere, the constant development and expansion, the company set up 100 years later, Draka has 68 companies in Europe, North America and South America, Asia and Oceania in 31 countries, employs 9959 people, with revenues of 2000000000 euros. To 2002, Western European top 20 companies accounted for more than 70% market share, 50 companies ranked in the following TOP20 accounted for 25%. Multi-National Corporation have a very large market share in the world, specialized companies have considerable market share in some product areas. And the survival of small companies or occupy a particular product area, either with local characteristics (such as building line), or too small and large companies are not interested in.

    Go up century ninety time later period, the Japanese electric wire and cable industry has hit bottom, business integration, Japan's largest several cable companies began between companies, the Japanese electric wire and cable industry will be known as the "selection and concentration", its meaning is through the selection and focus on the integration of the business. Such as in the field of high voltage power cables from the 6 integration of the original 3 professional production of high voltage  power cable company; have a similar integration in the field of winding wires etc..

    Although the industrial integration of all countries and regions to circumstances and in different ways, but in the development of the industry to a more mature stage were selected from decentralized to centralized integration in M & A is the main road, industrial integration has become one of the important mode of enterprise growth and expansion. Through the integration of making related business concentration of resources, scale expansion, cost reduction, research & development ability and product services increases, the use of international resources, accelerate the global market development and regional distribution, makes the integration effect of scale effect, market is formed by the fusion of synergistic effect, achieved rapid growth, enhance its international competition ability further.

    From the domestic development of view, in a fast growing market environment, industry into the door bar low, lack of supervision, the market mechanism is not perfect, provides a certain living conditions both for different competitive enterprises, but also the formation of many enterprises, small scale, scattered pattern of industry structure. Large enterprises have not yet formed a large and strong competitive strength, small businesses also failed to form the characteristics of special and refined. Size between the enterprise the product difference is not obvious, the market complementary differential, trend of homogenization serious causes the internal industry disorderly competition. The overall interests of becoming malignant competition more intense eroding the industry's future development, ability damage. In the face of fierce competition in domestic and foreign, within the industry through the integration of assets as a link only in the individual products in the field and a smaller range of occurrence, impact on the industry as a whole is not significant. The development of the enterprise is more through continuous self devotion, enlarge their scale. Therefore, "eleven five" period, the overall size of the industry has been greatly improved, but the industry structure of scattered, low concentration, homogenization of the industry competitive situation has not been significantly improved. In some areas, due to duplication of investment large, further aggravated the vicious market competition, reduce the level of industrial concentration. In the future of the industry of key products in the areas to actively promote the horizontal integration to assets as a link is an important way to solve problems step by step in the development of the current industry.

    Wire and cable industry "big but not strong"

    Although China's wire and cable industry in recent years to pay more attention to enhance the ability of technological innovation, strengthening the management ability and constantly enhance the competitiveness. But on the whole, China's wire and cable industry "big but not strong", especially the micro enterprise level constitute the basis of competition ability, there is still a wide gap.

    First is the ability to reflect in the enterprise different development period of strategic thinking, grasp and adjustment. Many domestic enterprises, especially small and medium enterprises, the lack of rational strategic thinking, some realistic goals, the blind expansion and simple imitation, is that some enterprises even in the fast hair