Switch panel cost pressure does not reduce the brand competition intensifies

Experienced in 2004, new products emerge in an endless stream come again on the first half of this year, the domestic market is still in the switch panel on innovation, new products and new technology have been absent, manufacturers in the market is not strong to promote publicity.

The market is like a raging fire, the promotion war, "big sale" or "buy one get one, a considerable part of the traditional domestic manufacturers resorted to Magic Competition prices to compete for market share, intends to price out of the terminal, but also deeply into the non rational investment.

Cost pressures still lower prices

Crude oil and metal prices continued to rise, triggering a substantial increase in raw material prices. The switch panel manufacturers generally feel a huge cost pressure, some poor capacity of small manufacturers have been so die, cost control and R & D investment promotion has become a problem that you can't have both manufacturers. In addition, TCL, Matsushita, Simon and several well-known switch panel manufacturers launched a series designed to break and transformation products last year, but did not reach the market expectations, prompting them to will adjust the product series as the main task in the first half of this year. The rising cost of a pressure last year and new product development, is the main reason for the lack of new ideas in the first half of the market.

On the other hand, the first half of the product promotion efforts have reached an unprecedented white hot, gifts to buy gifts, special products, discount discount various forms of marketing to promote market prosperity. However, in such a period of rising costs in general, in order to increase promotional efforts, disguised low prices to attract consumers, and expand their market share, is not a wise move. Experts have warned that the industry manufacturers hope to strengthen self-discipline, to avoid the simple price war led by the price for the share of short-sighted behavior, create a healthy development space for the enterprise itself and the industry as a whole.

Quality competition to brand competition

China has the world's largest number of electrical manufacturing enterprises, including more than 3000 switch panel manufacturers. After more than and 10 years of development, China's switch panel market has entered a period of rapid growth, and presents a serious trend of product homogeneity. At the same time, with the rapid development of China economy, International Electrotechnical brands such as MGE, Clipsal, has entered the Legrand, and a number of domestic brands such as TCL, Simon, Lonon and other international electrical rapid growth, switch panel industry in China by the quality competition stage a gradual transition to the stage of brand competition. This means that the manufacturers can only survive and develop in the fierce market competition, only by the comprehensive competitive advantage formed by the factors of technology, production, quality, price, channel, brand and so on.

In the first half of this year, the domestic switch panel market high, medium and low-end pattern of the division of the increasingly clear, the positioning of the major brands have become increasingly stable, and gradually recognized and accepted by consumers. In the high-end market, MGE, Clipsal and other international brands, Legrand's position can not be shaken. The product materials used sophisticated, exquisite design, emphasis on safety is the typical signs; with TCL, SIEMENS leader, Simon, Lonon, Matsumoto and other domestic well-known local brands as the backbone of the mid market pattern is gradually shaping, stressed the decorative products and consumer characteristics, moderate price is a significant feature of this type of brand; while in the low-end market, Hong Yan, Matsumoto and other brands to meet the basic functions of products for the demands, to low prices as the main feature, also shows that the force can not be ignored.

At the same time, the experts also said that from the perspective of the history and development of the developed countries, they are not active in the market, the number of switch panel manufacturers. And so on, when China's electrical industry entered a mature stage, the service in the domestic market will be up to 20 ~ 30. This not only means that in the next 3 to 5 years, the market will be further subdivided and large-scale reshuffle, market competition platform will also increase, and on the basis of the existing pattern of three points, will be accompanied by the process of the continuous emergence of new brands, old brands have disappeared. By then, the total market will continue to enlarge, the market will become increasingly standardized and clear, enterprise competition will enter a period of full competition.

Intelligent market selling point in the first half of 2005 is a complex half year. On the one hand, the promotion war will most vendors on the market into the irrational competition condition, and lead to the deterioration of its profits, which so many people in the industry for heavy-hearted; on the other hand, the market in the switch panel brand and product selection on the increasingly popular professional brand, consumer attitudes become more rational and mature. It is quite pleased. At the same time, with the rise of the level of competition, the competition pattern of the switch panel market is becoming more and more clear, which also promotes the whole switch panel market to enter the stage of maturity and all-round competition.

Intelligence is the inevitable trend of the development of switch panel market. In the past few years, although manufacturers are scrambling to intelligent, electronic products as their own value, to promote the sale of a major weight, but limited to the weather, geography, and people, often can not do so. This year, with the gradual maturity of related technologies, manufacturers to strengthen the cost control, research and development of intelligent home products will undoubtedly become a major trend in the second half. Of course, we also expect to be able to see, in the first half of the new products launched in the field of many plants