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No talk about profit market share?Wire and cable enterprise must break through the original thinking to cope with low price competition

Information Source:Henan Huadong Cable Co., Ltd Release date:2014-04-29 Recently, the reporter in a large wire and cable enterprises in domestic market sales director interview found that the phenomenon of severe price competition for the current domestic cable industry, the sales director thought on price war, in the case of be compelled helpless, low price strategy and strategy, if afraid of price war and give up the market, so more brand is useless.In simple terms, no market share is no profit.

China has the world's largest wire and cable market, however, the recent large scale companies;Innovation ability of enterprise itself is weak;Foreign giants such as "invasion" makes the living space of enterprises is becoming more and more narrow.In order to survive, many companies are adopting the tactics of low price in the market, which further compressed the other corporate profits."Domestic cable industry average profit margin of only hovered around 3% - 4%."Commissioner of ministry of machinery industry department reshipment Zhang Ronghan says the embarrassing industry on a meeting of the data.As a domestic wire and cable industry leader, the far east holding group chairman of the board Jiang Xipei said in earlier had worries that normal company has almost no profit.

In the interview, in the enterprise marketing director of seasoning in the cable industry more than 20 years of expert to reporters about his company's real experience."Project for the users, the competition is fierce, the competition in the end is often left the company and other companies. 1 and 2 at a time when other enterprises will be the price to the end, even lower than the company more than three points, have more very person will use a slightly lose a bit of marketing strategy to seize market construction workers and equipment in order to achieve saturation. The company always be an edge on the others."He reluctantly to describe this feeling "like ate a fly."

In domestic wire and cable industry brand and price is sometimes a pair of contradictions.He told the reporters, domestic many places, especially the relatively poor areas particularly sensitive to the price, brand for them just rich before he'll consider it."Market share is the foundation of brand building, and low price strategy occupies the market does not lose is a kind of strategy, the market will have to raise prices of capital. Did not have the market share of no profit?"He regrets way.

In the interview, he mentioned the old customer focus on the company's sales in the crucial one annulus.He says, the cost of maintaining old customers significantly less than the cost of developing new customers, and the companies often encounter other enterprises at a low price strategy to "the poacher" phenomenon.To this, he thought, the company can't lay down and die.Sales staff should master in the first time, he said, old customers after the acceptable price for accounting.As long as you don't lose money, you should had possession of market order.The move will not only severely hit other idiomatic embolden the strategy of the enterprise, but also to the sales personnel to build confidence.At the same time, also can take other measures to improve the market share, such as supporting to the sales staff incentive marketing related policies, regain original preempted by other suppliers market;Using integrated service, from design to installation, do more key projects, mutual benefit common development with customers.Construction of copper factory and factory raw and auxiliary materials such as plastic particles processing base.

No market share is no profit, but with this price war "like cures like" on the way to solve the problem of market share, this is feasible?Will go with it?It remains to be market inspection, but in any case, this represents the market a kind of thinking, a kind of voice.

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