Most of the domestic low-voltage electrical appliance production enterprises are small in scale and excessive in number, and more than 85% of enterprises are in the repeated production of medium and low-grade products. In the next period of time, the structure of low-voltage electrical products needs to be further adjusted. Products with backward technology, large volume, high energy consumption and environmental pollution will be eliminated.
At present, there are only a few dozen large enterprises with annual sales revenue and total assets of more than 500 million yuan in China's low-voltage electrical appliance production enterprises, most of which are small and medium-sized enterprises, resulting in a lack of economies of scale and competitiveness; Moreover, China's low-voltage electrical appliance production enterprises from the early days of the founding of more than 600, the development of thousands of enterprises, the number of enterprises is too large, resulting in too scattered economic resources, lack of efficiency. Due to blindly on the project, spread the project, resulting in serious regional industrial assimilation phenomenon, low economic efficiency, low-level repeated construction, resulting in product backlog, energy, material waste, low economic efficiency of the adverse consequences.
From the market situation, China's production of low-voltage electrical appliances basically occupy the vast majority of the domestic market, but domestic high-grade low-voltage electrical appliances in addition to individual products can be equally divided with similar foreign products, other domestic high-grade low-voltage electrical appliances domestic market share is still very low. The performance of the first and second generation of low-voltage electrical products is backward and the profit is meager, the third generation of products can not meet the demand, the development of a new generation of low-voltage electrical products is a top priority.
In addition, with the shortage of funds, the rise in financial costs and the rapid increase in employee wages, the increase in labor costs is irreversible, which will inevitably cause the profits of low-voltage electrical appliances to continue to decline. At present, many enterprises are already in a state of low profit and loss, which brings difficulties to enterprises to increase investment in scientific research, new product research and development and technical transformation.
Due to the increase in demand for low-voltage electrical appliances, many large foreign enterprises have increased investment in the field of low-voltage electrical appliances, and in the development of high-end products at the same time, they have also entered the low-end market in China, leading to more intense competition in the industry. The impact of foreign brands on domestic enterprises can not be underestimated, has largely restricted the development of domestic enterprises, and the current high-end products are still mainly imported brands.
The development of intelligent low-voltage electrical products to adapt to the end market for domestic low-voltage electrical manufacturing enterprises, this is undoubtedly a huge opportunity, but also a severe test.
The technical shortcomings of the low-voltage electrical appliance industry have become a major bottleneck for the development of the industry. According to statistics, foreign excellent enterprises in low-voltage electrical new product research and development investment can reach about 7% of total sales. The average investment in China's low-voltage electrical appliance industry is 1% to 2% of total sales, and excellent enterprises are only about 3%. This topic has also become the focus of the general low-voltage electrical appliances branch of the China Electrical Equipment Industry Association this year, which shows that the problem has attracted great attention from the whole industry.
Low-voltage electrical appliances market with the construction of power facilities and gradually expand, in recent years, domestic and foreign low-voltage electrical appliances demand are generally in a state of expansion, however, in the low-voltage electrical appliances market good development at the same time, the industry enterprises lack enough independent research and development capabilities, lack of high-end market competitiveness. According to the analysis, low-voltage electrical appliance manufacturers and international advanced large-scale manufacturers compared to the overall technology and production level are very different, especially the overall scale of low-voltage electrical appliance enterprises is small, all aspects of resources are relatively dispersed, enterprises exist in the low-end areas of repeated research and development or imitation of each other. Due to the increase in demand for low-voltage electrical appliances, many large foreign enterprises have increased investment in the field of low-voltage electrical appliances, and in the development of high-end products at the same time, they have also entered the low-end market in China, leading to more intense competition in the industry.
There are many manufacturers in the low-voltage electrical appliance industry, counterfeiting and price competition still exist, so that the general low-voltage electrical products are in a state of low profit, and the original products that have played a significant role in the development of the low-voltage electrical appliance industry, such as DW45 universal circuit breaker profits have also declined significantly.
With the continuous development of the market economy, the pattern of industry-wide production of new products led by the research institute has been completely broken, followed by the independent research and development of differentiated new products. As a result, the internal and external accessories of low-voltage electrical appliances, the trial production workload of the main parts manufacturers, the trial production cost has increased significantly, and the production volume of each accessory or part has been reduced, which is difficult to form a production scale and difficult to generate profits. The low enthusiasm of the accessory manufacturer also brings difficulties to the whole machine factory to develop new products.
And there are many low-voltage electrical enterprises, in addition to some large enterprises, there is not much difference between each other, the product structure is the same, the technical content is not high, the industry entry barriers are low, this structure leads to some excessive competition in the industry. Due to the existence of excessive competition, even in the face of a good market demand environment, its benefits are difficult to appear fundamental improvement. As a result of the large number of market participants, the industry profit rate shows a downward trend in order to obtain more market share, and the industry desperately snaps up tight raw materials, which makes the price of raw materials rise sharply and further worsens the profit level of the industry.
The impact of foreign famous brands and the addition of domestic monopoly industries have made domestic low-voltage electrical excellent enterprises worse. In the construction of smart grid, the State Grid company and many design departments are more inclined to foreign-funded famous brands, coupled with the domestic monopoly industry directly involved in low-voltage electrical appliance manufacturing, so that existing domestic enterprises, including excellent enterprises, are at a disadvantage in the market competition.
Low voltage electrical industry research and new product research and development investment is obviously insufficient, hindering the sustainable development of low voltage electrical industry. Low-voltage electrical products across a number of disciplines, belongs to a comprehensive, technology-intensive professional. With the development of related technologies, related new materials and new processes, a new generation of low-voltage electrical appliances will be born, but a lot of investment is needed. According to statistics, foreign excellent enterprises in low-voltage electrical new product research and development investment can reach about 7% of total sales, while China's low-voltage electrical industry average investment in total sales of 1% ~ 2%, excellent enterprises about 3%.
The rising cost of low-voltage electrical appliance manufacturing is irreversible. China's low-voltage electrical appliances, low-grade products are still in mass production, this batch of products are large, consume a lot of precious metals silver and copper, ferrous metals, plastics and other materials. Many materials are subject to international market prices, so the situation of high prices of the main raw materials of low-voltage electrical appliances and even continue to rise will be difficult to change.
Under the background of the continuous development of new technologies and new products of low-voltage electrical appliances, as well as the development of smart grids and the increasing importance of safe electricity consumption, if China's low-voltage electrical appliances industry does not increase investment in scientific research and development of new products, do not increase basic common technology research, and rapidly improve the independent innovation ability of enterprises, it will hinder the sustainable development of China's low-voltage electrical appliances industry and lose market competitiveness.
In addition, with the shortage of funds, the rise of financial costs and the rapid increase in employee wages, the increase in personnel costs is also irreversible. It will certainly cause the low-voltage electrical production profits continue to decline, many enterprises have been in a state of small profits and losses. At the same time, it brings difficulties to enterprises to increase scientific research, new product research and development and technical transformation investment.
