China's wire and cable products have been included in the scope of production license management, thus forming a certain industrial barriers, but this threshold is very low, many companies flocked, although the market demand is growing at a rate of more than 10% per year, but excess capacity Caused excessive competition in the industry, the average industry-wide operating rate of equipment is less than 40%.
According to statistics, at present there are tens of thousands of wire and cable companies in China, which have already become the world's largest wire and cable manufacturing country. However, the market concentration of the top five companies is only 8.43%. The total share of the top 65 is also Only 30%. And 12 companies in the United Kingdom divided up more than 95% of the wire and cable market in the country. The top 10 companies in the United States have a market share of 67%. The 7 largest companies in Japan occupy 86% of the sales volume. The French market is 90. The turnover of % is covered by the top 5 companies. Globally, 25% of the market share is occupied by 8 representative oligopolistic manufacturers. Only Italy's Prysmian Group has annual sales of over 5 billion euros.
Because China's wire and cable industry has low barriers to entry, investment in production scale is out of control, and low-level redundant construction is serious and the degree of concentration is not high, many workshop-type companies that do not have the necessary means such as production capacity, quality control and testing are also included. In addition, the pressure brought by the continuous increase of raw materials has made counterfeit and shoddy, shoddy work, and cutting corners, and shoddy work, and non-standard products have become popular. As a result, not only is there a huge hidden security risk, but also the enterprises and distributors that are legally produced are struggling; at the same time, foreign-funded enterprises are rushing to enter the Chinese market and occupy an absolute dominant market share in the high-end market, while only a few of them are in China. Cable varieties can meet the level that the international market can accept and can participate in competition. There is still a big gap between high-performance, high-quality, and high-value-added cable varieties compared with international brands. In addition, with the promulgation of European Union WEEE Directives, ROHS Directives, and EUP Directives, a wave of greenery has been set off across the globe, which has caused many Chinese wire and cable manufacturers to encounter a trade barrier in the export process and the competitiveness of the international market has been met. weaken.
There is a well-known Gresham's rule in economics, also known as the law of good money to drive out bad money. From the perspective of consumers, it is obviously unwilling to see the spread of bad money in the wire and cable industry. In view of the development status of this industry, Zheng Yonghan, the chief executive officer of Shenzhen Jinlongyu Group, proposed to strengthen consumption guidance, raise users' awareness of quality and safety, advocate the use of high-quality national standard products, teach consumers to recognize fake products, and refuse to buy inferior products. Guo Tingke, president of Shenzhen Bendak Groupâ€™s electrical industry, also holds the same view. At the same time, he also called for companies to conduct business with integrity and maintain quality and quantity of products. The supervisory departments should increase the crackdown on investigation and punishment of the production and sale of fake and shoddy products and unlicensed and unlicensed production, and improve the law enforcement efficiency. For cable companies, they may consider implementing a safety grade certification system, conduct qualification assessments, and act as a basis for eligibility requirements for participating in project bids, so that good money will prevail in the city.
It can be said that the current problems in the cable industry are the common problems faced by many traditional manufacturing industries in China, such as low barriers to entry, unsatisfactory business success, low market concentration, similar products, price wars, chaotic market order, and so on. The industry believes that according to the actual experience of foreign industry development and other industry practices and lessons learned, China's wire and cable industry is in urgent need of integrating large-scale production capacity, carrying out industrial agglomeration in certain regions and encouraging enterprises to implement product differentiation, technological innovation and brand strategy.
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