At present, domestic low-voltage electrical companies generally lack sufficient independent innovation capabilities and lack the competitiveness of high-end markets. With price wars and channel wars intensifying, the situation of the domestic low-voltage electrical industry is increasingly worsening.
China's low-voltage electrical industry from simple assembly, imitative manufacturing to self-development design, is now developed to nearly 1,000 series, production of about 1,500 companies, with an annual output value of about 20 billion yuan. However, the domestic low-voltage electrical appliance manufacturing enterprises are small in scale and excessive in quantity, and more than 90% of the enterprises are in the middle and low-grade product repetitive production. Three generations of products coexist. Calculated according to output value, the market share of the first generation products is 15%, the market share of the second generation products is 45%, and the market share of the third generation products is 40%. According to the trend of national policies, in the period to come The structure of the inner low-voltage electrical products needs further adjustment. Products with backward processes, large volumes, high energy consumption and environmental pollution will be eliminated.
The situation of state-owned, private and foreign-funded enterprises in the low-voltage electrical appliance industry has continued for many years. At present, ABB, Siemens, Schneider Electric and Other international electric companies have fully entered the Chinese market, and while occupying the high-end product market, they have actively entered the domestic middle and low-end markets. With the globalization of the market, the mutual penetration of foreign-funded enterprises and domestic corporate markets is another inevitable trend in the development of the low-voltage electrical appliance industry. This penetration includes the penetration of high-end products from domestic companies into foreign markets; the products of foreign-funded enterprises will infiltrate domestic and low-end markets. However, as far as the domestic market is concerned, the current foreign-funded enterprises have strong R&D, design, and management capabilities. While domestic companies, especially private enterprises, have flexible business ideas and strong sales channels, they have a lot of differences in terms of company size and product quality. Capacity still needs to be strengthened. The state and local governments should actively encourage enterprises and industrial clusters to extend the industrial value chain, support low-voltage electrical companies to develop in a “special, refined, and special†direction, and form a number of distinctive and focused industrial chains to drive industrial upgrading.
The trade deficit has picked up slightly
From 2008 to the first half of 2013, China's imports and exports of low-voltage electrical products were stable. The trade deficit has been declining year by year since 2010. The trade deficit in the first half of 2013 was 1.023 billion U.S. dollars. It can be seen that the international competitiveness of low-voltage electrical products in China is gradually increasing.
In the first half of 2013, the export growth of low-voltage electrical products in China continued the downturn in the second half of 2012. In the first half of 2013, the cumulative import of low-voltage electrical products in China reached US$6.688 billion, an increase of 5.49% year-on-year.
In terms of exports, China’s export growth of low-voltage electrical products in 2012 was high and low. In the first half of 2013, affected by the export downturn in the second half of 2012, the export value was US$5.664 billion, an increase of only 3.15% over the same period of last year. The increase was in 2011 and 2012. The year has dropped significantly.
The demand for high-end low-voltage electrical appliances in the domestic market still depends on imports. At present, domestic low-end low-voltage electrical appliances basically account for most of the domestic market, but domestic high-end low-voltage electrical products in addition to individual products can be equally with foreign similar products, the market share of most products is still low.
In the first half of 2013, the most important products imported by low-voltage electrical appliances in China were other connected electrical devices (line V1000V), with an import value of US$3.9 billion, accounting for 58% of the total import volume. In addition, the import price of optical fiber connectors was US$300.82. The price for exporting such products in China is only US$47.85, which means that China’s exports are still dominated by low-price, middle- and low-end products, and the international competitiveness of high-end products still needs to be improved.
According to the export customs data of the product classification, the unit price of China's export products increased by 6.28% on average, and the export volume decreased by 2.87% year-on-year. It can be seen that the upgrade and optimization process of low-voltage electrical products in China is fast, and the high-end competitiveness is also gradually increasing. .
Nearly 80% of China's imports of low-voltage electrical appliances come from Asian markets, and more than 90% of its exports are occupied by Asian, European and North American markets. China's imports of low-voltage electrical appliances mainly come from the Asian market, accounting for about 80%, the European market accounted for 14.94%; exports, Asia, Europe and North America accounted for 64.24%, 14.56% and 13.34% of the three major market exports, respectively, exports 2.9%, 6.44%, and 2.76% year-on-year growth. It is worth mentioning that in the first half of 2013, China's exports of low-voltage electrical appliances to Africa showed a relatively significant increase, an increase of 15.39% year-on-year, indicating that China's low-voltage electrical companies in the development of new The international market has achieved some results.
About three imports of low-voltage electrical appliances in China became export re-imports, with more than 30% of Japan and South Korea coming from Asian markets. In the first half of 2013, the amount of low-voltage electrical products imported from Japan and South Korea dropped by 4.29% and 16.72% respectively, while the import volume decreased by 5.83 and 12.79% year-on-year respectively. China's ultra-low 30% of low-voltage electrical products were imported from Japan and South Korea.
The main export markets for low-voltage electrical appliances in China are Hong Kong, the United States, and Japan. The total export volume exceeds half of the global exports. According to customs statistics in the first half of 2013, the top three low-voltage electrical appliance export markets in China were Hong Kong, the United States, and Japan; in the first half of 2013, China’s exports of low-voltage electrical products to South Korea and Singapore grew at a faster rate, by 25.62% and 11.36% year-on-year respectively. %.
The import and export trade mode of low-voltage electrical products is dominated by processing trade. The lack of value-added processing trade is the main reason for the export deficit.
On the import side, in the first half of 2013, China’s imports of low-voltage electrical appliances accounted for 30.87% of the total trade, up 20.39% year-on-year. Processing trade accounted for 52.58%, down 0.71% year-on-year, which was basically the same as last year.
In the import of low-voltage electrical products in China, feed processing trade is the main mode of trade. In the first half of 2013, the import value reached US$3.173 billion, accounting for nearly half of all imports, while the processing trade export value was US$2.758 billion in the same period. This shows that the import of low-voltage electrical primary products by means of feed processing trade, after China's processing trade enterprises further deep processing and re-export, there is no value-added also reduced about 400 million US dollars, which is also one of the main reasons for China's low-voltage electrical products trade deficit.
In terms of exports, in the first half of 2013, the general export volume of low-voltage electrical appliances accounted for 42.59%, an increase of 8.43% year-on-year, and processing trade exports accounted for 48.69%, which was a decrease of 0.48% year-on-year, of which feed processing trade exports accounted for 45.46%. Processing trade of manufactured goods exported by export enterprises is still the biggest feature of China's low-voltage electrical appliance industry; however, general trade growth is faster. It can be seen that the manufacturing level of low-voltage electrical appliances in China and the increase in international competitiveness are accelerating.
Guangdong Province is China's largest import and export of low-voltage electrical appliances, accounting for 44.83% of the country's imports, exports accounted for 40.23%. Jiangsu and Shanghai accounted for more than 10% of the import and export volume, Zhejiang Province, the main export-oriented.
Insufficient new product development
Low-voltage electrical industry research and new product R & D investment is clearly insufficient, hinder the sustainable development of low-voltage electrical industry.
Low-voltage electrical products span multiple disciplines and are comprehensive and technology-intensive. With the development of related technologies, related new materials, and new technologies, a new generation of low-voltage electrical appliances will be born, but a large amount of investment is still needed. According to statistics, outstanding foreign companies can achieve total sales of about 7% in the research and R&D investment of low-voltage electrical products. The average investment in China's low-voltage electrical industry is 1% to 2% of total sales, and excellent companies are about 3%.
Under the background of the continuous development of new technologies and new products for low-voltage electrical appliances and the increasing attention paid to the development of smart grid and safe use of electricity, if the low-voltage electrical industry in China does not increase investment in research and new product R&D, and does not increase research on basic generic technologies, the Improving the ability of independent innovation of enterprises will inevitably hinder the sustainable development of China's low-voltage electrical industry, and lose its market competitiveness.
The rise in low-cost electrical appliance manufacturing costs is irreversible. In China's low-voltage electrical appliances, low-end products are still produced in large quantities. This batch of products is bulky and consumes a large amount of precious metal silver and copper, ferrous metals, plastics and other materials. Many materials are subject to international market prices. Therefore, the situation in which the prices of main raw materials of low-voltage electrical appliances remain high and even continue to rise will hardly change.
In addition, with the shortage of funds, rising financial costs, and the rapid increase in the wages of employees, the increase in personnel costs cannot be reversed. It will surely cause the profit of low-voltage electrical appliances to keep falling. Many companies are already in a state of low profit and loss. At the same time, the company has increased scientific research, and new product R&D and technical investment have brought difficulties.
The impact of well-known foreign brands and domestic monopoly industries have added to the pressure on domestic low-voltage electrical enterprises.
In the construction of smart grids, the State Grid Corporation of China and many design departments are more inclined to foreign famous brands, coupled with the domestic monopoly industry directly involved in the manufacture of low-voltage electrical appliances, so that existing domestic enterprises, including outstanding enterprises, are at a disadvantage in market competition.
Many low-voltage electrical appliance industry manufacturers, counterfeiting and price competition still exist, so that the general low-voltage electrical products have been in a meager state, the original has led the development of the low-voltage electrical industry has played a major role in products such as DW45 universal circuit breaker profit also decreased significantly.
With the continuous development of the market economy, the pattern led by the Institute to jointly design new products for the entire industry has been completely broken. Followed by the independent research and development of new products. This caused the internal and external attachments of low-voltage electrical appliances, and the trial production of major component manufacturers. The trial production cost increased significantly, and the production volume of each accessory or component was reduced, it was difficult to form a production scale, and it was difficult to generate profits. The low enthusiasm of the accessory manufacturers also brings difficulties to the whole plant to develop new products.
Development of low-voltage electrical appliances
With the continuous and rapid growth of China's economy, it provides a huge market space for low-voltage electrical products. The strong attraction of the Chinese market has led the world to focus on the Chinese market. In the short period of reform and opening up, China's low-voltage electrical appliances The huge manufacturing capacity created by the manufacturing industry has made the world impressive. With the continuous expansion of China's power industry, data communications industry, urban rail transit industry, automotive industry and shipbuilding and other industries, the demand for low-voltage electrical appliances will also grow rapidly. The future of low-voltage electrical appliances industry still has enormous potential for development: "Twelve In the context of the ambitious development goals set forth in the “Planning Outline†and the continuous growth of the macro economy, investment in fixed assets, industrial production and overall consumption, especially the rapid growth of urban population, will inevitably stimulate the growth of electricity generation and electricity consumption. Therefore, the future market for low-voltage electrical appliances will continue to expand. The period from 2011 to 2020 will be the main period of China's smart grid construction, and the total investment of the smart grid is expected to be close to 4 trillion yuan.
The smart grid has entered an important stage of comprehensive construction, and the intelligent construction of urban and rural distribution networks will be fully opened. Smart grids and smart complete sets of equipment, intelligent power distribution and control systems will usher in a golden period of development.
At present, the low-voltage electrical appliance market gradually expands with the construction of power facilities. In recent years, the demand for low-voltage electrical appliances at home and abroad is generally in an expanding state, and the market prospect is very considerable. However, domestic low-voltage electrical companies generally lack sufficient independent innovation capabilities and lack high-end market competitiveness. As price wars and channel wars intensify, the environment of the domestic low-voltage electrical industry is increasingly degrading.
In the increasingly competitive low-voltage electrical industry, the appeal for "design to enhance brand value and design to get rid of "low-end" problems" has become increasingly strong. Some forward-thinking companies are brave enough to take a solid step and improve their brand and product competitiveness through cooperation with well-known design companies.
To sum up, in the complex and ever-changing world economic environment, China's low-voltage electrical import and export trade has encountered unprecedented opportunities and challenges. It is expected that imports will remain basically the same as last year, and the total amount of exports will increase by about 10%.
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