With the slowdown of domestic economic development, the supply and demand market for the electrician industry this year is not optimistic, and the development momentum of the electrician industry with an average annual growth rate of 30% has passed. In the second half of last year, the orders of many companies decreased significantly. Although the orders in the first half of this year were a little better than last year, the profit margins and sales prices fell sharply. On July 19, the Deputy Secretary-General of China Electrical Equipment Industry Association Bai Wenbo said in an interview with reporters that power equipment companies are faced with the task of transformation and upgrading, but also to go out of the country at a proper time to find new growth points, for now, companies take overseas The way of M&A is a model that can be used for reference.
In fact, it is inevitable that companies will continue to expand overseas markets and go out in due course. However, in the eyes of most entrepreneurs, the road for Chinese enterprises to go out is not smooth. In addition to capital and technology, investment decisions, market changes, and legal obstacles Cultural differences, political instability, and other factors have made it difficult for companies to go global.
Therefore, looking for a business model that suits itself and a new point of growth for profit, targeting the company is a problem that lies ahead of the company.
Going abroad
From the first half of 2012, there has been a rare negative growth in the electrical industry in China. Power equipment industries such as wire and cable, transformers, and wind turbines have suffered from overcapacity, profit decline, vicious competition, and declining quality. Some equipment capacity utilization even less than 50%, raw material costs even accounted for 70% of the selling price, transformers on the sale of Jin has become a laughing stock in the industry.
At present, China's power transmission and transformation equipment manufacturing industry has undergone rapid development and fierce competition. The serious overcapacity is an indisputable fact. The primary problem facing the Chinese transformer industry is still the issue of market development. While striving to develop the domestic market, it is necessary to further develop overseas markets. Wang Dehua, deputy general manager of Xi'an Xidian Transformer Co., Ltd., told the reporter of China Electric Power.
In fact, exploring the overseas market is not only a problem faced by the transformer industry alone, but is a common outlet for the entire power equipment industry. Equipment companies under meager profits can only stand firm in the upcoming big reshuffle by going global to open up the international market. heel.
However, with the changes in the environment at home and abroad, it is more and more difficult for power equipment companies to go out. The deep-seated contradictions of the financial crisis have not yet been effectively mitigated. Chinese enterprises are not competitive in the high-end market, and competition in the low-end market is further aggravated. They do not have brand benefits, and they are more stringent in terms of policies, taxation, employment, and environmental protection. Demanding requirements.
Xu Xiang, president of Daquan Group, believes that it is a general trend for companies to go abroad to expand overseas markets. In the future, Daquan Group's international market share and staffing should go hand in hand with the domestic market, but the specific timetable also needs to be tailored according to changes in the market, because the market changes. Very quickly and full of unknowns, the corresponding sales model, management innovation, localization strategy must also be adjusted.
Innovation model
Going out of equipment companies will inevitably face the risks of policies, environment and management. Although it can be sure that the scale of going out will be greater and greater, it is still difficult to assert the level of profitability, which requires companies to accumulate more experience in the development of foreign projects.
Power equipment companies go out mainly in the following ways: First, close to the market supply side. For example, explosion-proof products mainly serve coal mines and petrochemical industries. There are numerous petrochemical enterprises in the Middle East. Some domestic companies set up factories in Iran to provide direct services to front-end markets. Second, they set up factories in the front of raw materials. Such as some domestic special transformer enterprises to open plants in Africa, because where the price of copper is cheap, they will turn Africa into a component processing plant, the product is still shipped back to the domestic consumption; Third, directly in overseas mergers and acquisitions. Wolong Electric Group's merger with the German ATB is a successful example; Fourth, the transfer of brand value. For example, the low-voltage electrical industry appeared in the purchase of European SME brands, OEM production. Bai Wenbo told reporters.
After the Wolong Electric Group acquired the German ATB Group, it did not send a large number of managers and technical personnel to Germany. Instead, it implanted some Chinese-style management methods in the form of a board of directors and continued to expand the scope of mergers in Europe. After the completion of the acquisition, Wolong Electric can With ATB's brand and market network in overseas markets, the company quickly increased its market share in the international market and entered the global high-end motor market.
In fact, it is more and more difficult for China's power equipment companies to go out. On the one hand, the international demand for electricity and environmental protection continues to increase, and the cost of investment increases. On the other hand, due to the influence of the West, Chinese companies have also encountered a lot to go abroad. As far as transmission and distribution are concerned, there are few successful cases in which the front end of the market goes out. If there is no market as a basis, it is only meaningless to transfer labor costs and go out to avoid tax. At present, enterprises may be a good choice for directly acquiring companies overseas. Bai Wenbo said.
Practice well
In recent years, the sharp decline in orders in the international market has both the impact of the economic environment and the normal reaction of the economic development cycle. However, from the perspective of the international market, the demand for high-performance electrical equipment is still growing, and the market's territory and space are still expanding.
This forced Chinese equipment companies to work hard on core technologies and product quality. Although enterprises go out and face many uncontrollable factors at the fiscal, taxation, political, and cultural levels, it is undoubtedly the only way to expand the international market.
At present, China's exports of foreign power equipment products generally do not sell a good price, although individual industries have reached the international leader, but a large number of basic industry products have not reached the international average, and in the international market, there are few independent brands in China, electrician The development of the industry in recent years is indeed a lot stronger than in the past, but in general there must be a sober understanding of the industry transformation and upgrading without delay. Bai Wenbo said.
In this regard, Xu Xiang deeply felt that Daquan Group had almost no gap with foreign products, but the hardware and software conditions for participating in the international market still required a process. In April of this year, the 2013 Hannover International Industrial Fair held in Germany made him realize that with the implementation of industrial upgrading and internationalization strategy, Daquan is transforming itself from a domestic-oriented market to a global one, from technology to technology-based. The transformation of innovation.
Wang Dehua also believes that China's transformer companies need to work hard to improve their product quality and performance and control costs. Develop low-loss, low-noise and reliable environment-friendly power transformer products that meet the standards of Europe and the United States and special environmental requirements, and carry out a series of work in changing sales models, improving after-sales service quality, brand promotion, etc., in order to successfully open the international market Lay the foundation.
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