The Leader in the Reform of the Wire and Cable Industry
Wires and cables are an indispensable large category of electrical products that are used to transmit electrical energy and information, manufacture various motors, instruments, meters, and realize electromagnetic energy conversion. They are closely related to the development of the national economy.
With the fast development of the economy, the national production and living electricity consumption have increased rapidly.The market capacity of the power industry has continued to grow, and the scale and number of wire and cable manufacturers are constantly expanding.
At present, there are nearly 10,000 wire and cable enterprises in China, 97% of which are small and medium-sized enterprises. The current market competition is still dominated by price competition. The development of the entire industry is too regional, also the brand awareness is weak with limited development space.
In the face of such a new market pattern, how to break the situation and seize the opportunity has become an important issue for China's wire and cable enterprises. The following four research points are hoped to be helpful to wire and cable enterprises.
1. Wire and Cable Market Size
In recent years, with the steady growth of the domestic economy and the continuous advancement of industrialization and urbanization, various industries such as electric power, petroleum, chemical industry, urban rail transit, automobiles, construction, new energy and ships have developed rapidly. In particular, the investment in the construction of smart transmission and distribution networks and UHV grids has continued to increase, which has promoted the efficient development of China's wire and cable industry.
From 2017 to 2020, the sales revenue of China's wires and cables generally showed a fluctuating growth trend. In 2022, the sales revenue of China's wires and cables will reach a year-on-year increase of 5.45% with the amount of 1.74 trillion RMB,.
According to the use, China's wire and cable products are mainly divided into five categories: power cables, electrical equipment cables, wires (bare wires), winding wires, communication cables, and accessories.
Among them, power cables are the most widely used, with the largest market share up to 39%. Electrical equipment cables account for 22% of the market, and wires (bare wires), winding wires, communication cables, and accessories account for 15%, 13%, 8%, and 3% respectively.
2. The Development Trend of Wire and Cable Industry
(1) Steady Economic Growth and the Implementation of Major National Strategies Promote the Continuous Development of the Wire and Cable Industry
The power grid planning investment of the State Grid and China Southern Power Grid will exceed 2.9 trillion RMB during the "14th Five-Year Plan" period. This is significantly higher than the total investment of 2.57 trillion RMB in the national power grid during the "13th Five-Year Plan" period and 2 trillion RMB during the "12th Five-Year Plan" period. It can be seen that benefiting from the national long-term economic development plan and the advancement of new infrastructure and smart grid construction, the wire and cable industry will continue to be optimized and upgraded, which shows a sustained and stable growth trend.
(2) Industry Concentration is Gradually Increasing
Under the continuous strengthening of China's quality and safety supervision as well as special rectification of wire and cable products, a group of small-scale wire and cable enterprises that lack core competitiveness have been prompted to withdraw from the market. Enterprises with quality products and brand's core competitiveness is conducive to achieve good economic benefits and will further enhance the industry concentration.
The entire industry began to shift from shoddy products ,low-price and disordered competition to quality, service, and brand competition. Wire and cable companies began to develop in the direction of specialization and integration. The concentration of the wire and cable industry is gradually increasing, and it will achieve healthy and sustainable development in the future.
(3) Product Structure Optimization and Upgrading
With the advancement of science and technology, the transformation and upgrading of traditional industries, and the rapid development of strategic emerging industries and high-end manufacturing industries, China's economy and society are further developing in the direction of safety, environmental protection, low-carbon energy conservation, informatization, and intelligence. The construction of the national smart grid, modern cities, rail transit, and the manufacture of new energy vehicles have put forward high requirements for the function and quality of wires and cables and constantly boost the optimization and upgrading of wire and cable product structure.
3. Current Status of Competition in the Wire and Cable Industry
The number of wire and cable and related enterprises in China has grown rapidly. By the end of 2021, the number of wire and cable related enterprises in China has reached a year-on-year increase of 36.6% with the number of 692,400
China's wire and cable industry is dominated by low-end products with the particularly fierce competition. With the continuous development of science and technology, the birth and popularization of new technologies and concepts such as new energy and high-end equipment will bring opportunities for the development of the wire and cable industry.
4. Wire and Cable Market Analysis Based on Terminal Data Statistics
Many wire and cable brands rely on traditional models of competition. They overemphasize the volume of wires and cables and rarely touch the pain points of their customers fundamentally, so they cannot effectively link to the minds of their customers, which results in poor brand communication.
To prepare for major changes and development, we must draw a grand strategic blueprint for future development from the aspects of strategic planning, brand communication, new product creation, and marketing practice. The following five tips are hoped to be helpful to wire and cable companies.
(1) Strategic Creativity and Strong Brand Breakthrough
The corporate strategy is based on the current status and trends of the industry and should be based on the in-depth analysis of well-known wire and cable companies at home and abroad. Wire and cable companies should creatively propose strategic positioning and generate strategic maps based on the actual situation of the companies themselves and national development direction.
(2) Launch New Products and Become a Dark Horse in the Industry
Products are the core competitiveness for a brand, and the status of super single products is even more important. Wire and cable companies should implement brand strategy with strategic core positioning, such as the brand image positioning of "only make high-quality wires and cables", and tailor the development path of super single products.
(3) Visual Upgrade to Achieve Gorgeous Transformation
A brand image is like a talking business card, which carries consumers' favorability to the brand as well as the cornerstone of brand equity. To become a representative brand of China's high-quality manufacturing industry, from the brand super symbol to the super symbol system, it must be beautiful. In addition, it should meet the actual situation of manufacturing enterprises, as well as being in line with the brand position of the future vision.
(4) Brand Evolution and Accumulation of Brand Potential
Wire and cable companies should also pay attention to the professional renewal of the company's official websites, the upgrade of WeChat public accounts and other brand-new internet marketing channels, to fully open up the self-media traffic channels.
(5) Attend Business Training Courses and Grow Marketing Talents
At present, China's wire and cable industry has reached a critical period of increasingly fierce business competition. Marketing is no longer just about selling products. The curtain of professional success in the brand competition has been lifted, which requires every marketer to understand company culture, products, circulation, channels, markets, management, consumer psychology, and industry trends.
It is necessary to establish a training system and provide comprehensive education and systematic training for brand first-level merchants, second-level merchants, shopping guides, and electricians. It is committed to making every partner with whom we grow and develop together into an ideal, professional, high-skilled wire and cable team that is knowledgeable in management and marketing.
Wire and cable enterprises should get rid of the vicious competition model of the industry with a new brand appearance. Wire and cable enterprises should use digital creativity to build differentiated competition barriers, renew the whole system of wire and cable brands, and jump from regional brands to national brands. Guided by strategic vision, wire and cable enterprises should plan from strategy to tactics, gradually realize the all-round upgrade of the brand, open up the continuous growth in both sales and market value. We wish people with lofty ideals to become the leader in the reform of the wire and cable industry.
