If Wire & Cable Manufacturing industry profits crisis appears inevitable a bit alarmist, but the cable manufacturing industry in the low profit era is an undisputed fact. Recently, from the cable industry, as reflected in some of the circumstances, and now cable manufacturing industry and Other Industries, increasing competition, corporate profits have entered a period of complex turning point: First, more and more difficult way to go; second is more difficult; Third, increasing cost; Fourth, profit more and more difficult be.
This, many of the industry quite agree: "Now the quest for hard wire and cable industry, and cable manufacturers in China with high growth era is over profit margins, low-profit business may be a longer period cable manufacturers in the mainstream. "
Course, the marginal profit of domestic wire and cable industry has been gradually wash away. Then, marginal profit, cable manufacturing industry will show some of what characteristic? In this regard, relevant to point out, first, not to mention cable prices go up, companies increasingly tight profit margins; the second is for a profit between the shopping and business enterprises, market competition is becoming increasingly intense; Third entrepreneurs depressed Some wait, some keep rats at both ends, the lack of enterprising and pioneering spirit. Then the marginal profit is How's that? In the interview, most cable companies believe that the high costs of growing the main reason leading to enterprise small profit. In recent years, rising raw materials such as, personnel costs rose, plant rentals up, Energy Prices up ... ... On this premise and background, or low-profit enterprises to ensure the operation had a good, if expect high profits is probably fantasy. While another industry is that the cost of ups and downs in the market behind the government's macro-control, the marginal profit is the inevitable result of market regulation. Apart from the above point of view, some cable companies also believe that the market is not standardized, disorderly competition, also contributed to the cable manufacturing industry, a key factor in low-profit business. Cable manufacturing industry is very low entry threshold, the door always put the profits of cable manufacturing industry virtualization, one-sided that the cable industry technical content is not high, and low investment, high profit, quick, then rush infiltration, blind investment, reckless expansion, resulting in market saturated. Once the market saturated, the cable industry, the competition will be caught in a state of disorder. Therefore, to snatch the limited market, the price you shopping, take the low road of competition, the result is loss of interest of the entire cable industry. In addition, there are many in the industry believe that a strong brand in China's cable products are rare, most of the cable company is taking the middle and low road, so the brand value is not high, their profit margins also relatively narrow, Enterprise received only a meager profit. In addition, a large number of strong brands in foreign countries, (for example, Pirelli, Nexans, Sumitomo, etc.) into the domestic cable market, the domestic cable products is also a huge impact, but also increased competition in the domestic cable market, affect the interests of the pattern of distribution.
Therefore, marginal profit is the result of economic laws, a combination of factors is the structure of body, it is not the people's will, is a normal.
First, the "small profit" is a maturing industry, the inevitable result. This of Financial Crisis on our cable businesses, such as a baptism of fire and ice, out of a lot of disorder operators, enterprises and lack of competitiveness of the cable outlets, making the market mechanism is more perfect, perfect. It is foreseeable that the financial crisis of the cable companies will accelerate the pace of maturity, the original high-profit era came to an end, rational, balanced, low-profit market will be gradually formed.
Second, the cable industry to accelerate the reshuffle will lead to low-profit era. Cable competition like a marathon, the road ahead because of the low threshold, players countless; but went behind when it pulled away, and not run out of track gradual, sustained run of good players insist on diminishing . Crisis, China's cable industry, could run more than usual players, such as after a major reshuffle. Crisis, due to market more fully, more competitive, shuffle will continue. After many rounds in the shuffle, the cable industry is also bound as Home Appliances Industry generally, more low profits. Therefore, profit era, the face of an increasingly competitive cable market, business operations and how they should "blaze a trail of blood Road," then?
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