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How to adjust the operating cable enterprise economic downturn

Information Source:Henan Huadong Cable Co., Ltd Release date:2014-05-10

China first quarter economic downturn, people from all walks of life are more or less are feeling the economic cold biting cold. For the wire and cable industry is closely related with the macro economy, experience more profound, most cable companies are clearly feel this year market prices than the same period last year, not the same degree have declined.

Chinese wire & cable market intense competition in the industry already It is evident to anyone, huge scale nearly 10000 enterprises, and foreign giants "invasion" of the enterprise's survival space is shrinking. At the same time, enter a doorsill low, the homogenization of serious, low price competition, shoddy phenomenon frequently harsh and make the development of wire and cable enterprises is particularly difficult, in order to survive, many enterprises are in the low price in the market strategy, and this further compression of other enterprises profit.

The domestic cable industry average profit rate hovered around 3%-4%. Some even lower, for many large enterprises adhere to the quality of wire and cable, has almost no profit. This is not an exaggeration. On the market, the competition is quite fierce, for a project, often when the last only a two, this time many enterprises will be even lower than the price down, the company a few points, even the slight deficit a marketing strategy to seize the market in order to workers, construction equipment saturation. In this case, no profit at all.

On the wire and cable companies, this is the market forcing the last ditch move, or is the result of intense competition, in this case, cable enterprise wants to survive, the first to be proactive, grain storage "winter". Stagflation, for cable, not blindly down to wait, still need to change idea, adjust the attitude, initiative, and find out the opportunity, looking for low cost operation of the market for any crisis, after all in the genes, all contain the seeds of opportunity.

As everyone knows, the total change in the market circumstances, to make self made products share remains constant or increases, the only way is to steal someone else's, more specifically, is to take the initiative, grab market share from competitors. While the economic crisis, the overall market volume smaller, but does not mean that the market for a particular job market can obtain the amount of small. Because of the economic crisis, not the user not need, but users do not buy or buy up mind to give some depression.

In the face of fierce competition, cable enterprises want to obtain orders, can only go for: Homeopathic users of quotation is expected to decline, the appropriate cut price, reduce profits, small profits but quick turnover. This has two advantages: one is mostly in the dormant competitors, are not willing to store input, store environment relative vacuum, and shopping malls in the very simple, so that a user's attention, brand communication, because no other brand's annoyance, the effect will be very good. The strategy can reach brand publicity effect, tactics can obtain as much as possible the user order; two can be made to the government support. Cable companies to obtain orders from a is to obtain orders for the local government to vigorously support, more simple to obtain, property, fabric. In short, the cable companies to see clearly, although the short term profit some lost, but from a local shopping mall scale and brand influence is surging forward, the long run, can be a greater benefit.

Cable companies go, as long as you don't lose money, you should grab orders occupy the market. It not only can attack other conventional low price strategy to corporate arrogance, and establish the confidence to the sales staff. At the same time, also can take other measures to improve market share, such as matching to the sales staff related incentive marketing policy, regain the original by other suppliers to seize the market; the use of integrated service, from design to installation, do key project, mutual benefit and common development with customers; construction copper factory and plastic particles factory and other raw materials processing base.

The cable companies, the extensive cultivation age has gone for ever. Therefore, to shorten a front, sell path cut with little success, to meet all the resources, intensive and meticulous farming the main path. Cable companies don't waste the limited resources, to more accurately determine the policy from customers, the more rendezvous promotion strategies useful. During this period, a resource cable companies do not ignore is a old customer resources. Because maintaining an old customer than the cost of obtaining a new customer costs much lower, or through some useful promotion methods, such as increasing the content of the validity of customer service, punctual return, let old customers into several acquisition loyal customers, let customers through word of mouth with new customers, and this point should be cable companies good choice.

In economic cold winter season, each other not against each other, it is also very important. Winter always in the past, the time between cable enterprise groups should also encouraged each other, each other, each other, learn from each other good practices and experience, to defeat the cold. In the heating process, the government can develop guidance, guidance, path between the supply cable companies to communicate with each other and exchange of good practices and experience, the sensitive effectively communicate and promotion.

Economic winter, enterprises can not be winter, but should diligently in the winter season. Savings strength must first complete the product, the product is the core competitiveness. If long-term do not care about the product R & D, just focus on and other cable companies to snatch market share, and their own independent research and development ability is insufficient, independent R & D capability does not put up, so will cause high cost of production, the opposite. Even a low profit grabbed the market, also won't make a profit, but can not be a long-term market share. If you can not input through independent research and development capacity, thereby enhancing the quality of the products, create more in line with the wire products market demand, so the production enterprise is difficult to capture the market, it is difficult to become bigger and stronger, brand.

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