Domestic Wire and Cable Industry Goes Abroad

The voice of the domestic wire and cable industry going abroad is indeed rising. Indeed, I can clearly feel the sense of pride and honor that local products have brought out of Guomeng, but when we return to reality, we find it cruelly that this is only Our wishful thinking or just a fantasy. Domestic cable products want to ride the wind and waves, open the ocean to open the foreign market pattern is easier said than done!

At present, the domestic cable market is chaotic, and more than 97% of cable companies are small and medium-sized enterprises. Nearly 100% of cable companies have long been caught in the poor competition in the low-end market. Because of the great development of all walks of life in our country, large-scale development of aerospace, ships, rail transit, UHV power, new energy, etc., it has opened up enormous opportunities for the world’s rare cables, even for such markets, we have difficulty grasping and Occupying and being beaten by internationally renowned cable companies, we also whimsically planned to seize the market share of other countries. It seems that it is impossible.

Of course, even if it is possible, it can only be the case in African countries (if the international giants are not involved, this is not impossible). It is conceivable that if China’s cable products sail across the sea to France and encounter Nexans, what will be the result?

It is true that with the integration of the world economy, globalization, and China’s accession to the WTO, China has integrated into the international economy and society in all aspects in a harmonious manner, and it has made good use of international resources and international markets to develop its own economy. However, it is not that all industries are able to do this smoothly. First, domestic cable research and development capabilities and cable product quality are the biggest risks. Unless we go abroad and still play our own advantages, we will fight the price war and be below the cost price bid...

It can be said that, regardless of whether or not to take the international strategy, as the second industry wire and cable industry, second only to the automobile manufacturing industry, has entered a critical moment, the entire industry needs to make strategic adjustments, and strive to enhance their own face More challenges to the international market. What the author said in the face of more challenges in the international market means more that the international cable giants continue to invade China’s cable market. In the face of these cable oligos such as Nexans, Prysmian, LS, and Sumitomo we have Difficult to parry, even to see that most of our high-end market is competing with them!

In fact, the Chinese market is becoming more and more open. The huge wire and cable market in China has also deeply attracted foreign giants of cable manufacturers to invest and set up factories. These foreign companies have achieved remarkable results in the Chinese market. Show their skills. These foreign funds mainly come from Japan, the United States, the United Kingdom, France, Germany, the Netherlands, Switzerland, Singapore and Hong Kong and Taiwan, such as Japan's Furukawa Electric, France's Nexans, the Netherlands Philip and the German company Siemens. The cable products produced by these foreign companies have a very high reputation in China, occupy a huge market share, and frequently win the bid for domestic key projects. At present, the world’s top 60 manufacturers have invested in China, of which 30 manufacturers have at least one cable factory and want to share one piece in the cake of China’s rapid economic development.

Foreign cable companies attach great importance to the development of the cable industry, especially cable companies in Europe and the United States, and they maintain strong advantages in related product technologies. Domestic companies must combine the current status of cable products, increase investment in technology research and development, formulate technical strategies that are consistent with the company's development, and promote technological innovation. At the same time, domestic enterprises must broaden their horizons in science and technology, pay attention to the source of innovation in the world's cable technology, integrate resources, and thus have more autonomous technology patents and improve the conversion rate of patent achievements. Having more innovative technologies of its own has become a key element in maintaining victories in fierce market competition.

At present, some key areas of China's wire and cable industry technology rely heavily on the outside, and many high-tech and high-value-added products rely mainly on imports. China's cable varieties are in urgent need of development, and the overall technical level and grade of cable products need to be improved. And with the continuous shrinkage of the wire and cable profit margins and rising production costs, we should pay more attention to how to improve our competitiveness, rather than using our brains to go abroad.

The most puzzling thing for the author is that nowadays, in major media reports, we can often see certain cables expanding into the international market, which is in line with the international standards, and the words are perfectly satisfactory. However, this kind of reporting is tantamount to spiritual opium. In addition to creating hallucinations and producing a strong, blind pride, it is difficult to correctly understand industry issues!

Of course, there is no shortage of media to evaluate the domestic wire and cable industry in an objective and fair manner. It is believed that only a few cable varieties in China can meet the standards in the international market, and only a few of these products can compete with cable products from abroad, and these A small number of products that can compete with foreign countries are dominated by medium and low-end products. High-end cable products and high value-added products are still dominated by foreign cable giants.

Therefore, the author believes that the idea of ​​domestic cables going abroad should be put on hold for the time being. The heat is still far from being reached. Instead, what should really be done is that through the opportunity of the international cable giants to break into the Chinese cable market, they must work hard to learn the advanced management concepts and management culture that they bring. Caiwai makes full use of the abundant funds and climax technology that they bring. Through self-learning, learning from and absorbing, it's possible to become a foreigner by practicing skills.

It is true that China's cable companies must unswervingly follow the goal of internationalization. They must not only pursue quantitative expansion, but more importantly, become world-class in global brand image, business model, and technological innovation. enterprise. However, in the increasingly prominent domestic cable industry, shouting such slogans blindly is ridiculous, sad, and hateful.

Of course, this does not mean that domestic cable manufacturers have no chance to go abroad. On the contrary, although the domestic excellent cable companies do not have a high proportion, they are not absent. Although these domestic cable companies still have a certain degree with international cable giants. The gap, but only through continuous innovations in technology and management, can we gradually adapt to and master international trade rules, further change the situation that relies too much on indirect exports, maximize the international market share, and allow our cable companies to occupy the world There should be seats.

All in all, the domestic wire and cable industry is facing a difficult transition period. In such a special period, it should not be blindly optimistic and should not be blindly pessimistic. Only by correctly understanding the wire and cable industries and their own wire and cable manufacturing companies' own deficiencies, and thus find effective The way to change these shortcomings is to be able to go abroad and go to the world. In particular, with the domestic cable manufacturing enterprises encountering a wide range of closures and closing tides, large-scale enterprises have more opportunities to take the road of mergers and reorganizations, and continue to grow their own strengths and pave the way for going abroad.

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