As the “City of China’s Electrical Appliancesâ€, low-voltage electrical appliances in Liushi City have accounted for more than 60% of the country’s market share. Both the industry scale and the product category are among the highest in China.
However, with the obvious acceleration of the pace of economic globalization in recent years, the internationalization of the domestic market, the localization of international competition, and the increase in the cost of raw materials and energy, the low-voltage electrical appliance industry in the “China Electric Capital†is facing a trend of white-hot competition. A considerable number of low-voltage electrical companies have entered the predicament of survival and development. Especially in this year's financing difficulties, cost increases, labor shortages and other multiple factors superimposed, resulting in Liuzhou low-voltage electrical companies are facing a serious crisis of survival.
In an in-depth analysis of the external causes of the crisis, we discovered that due to over-reliance on resources and lack of core technologies, the macroeconomic environment of China's small and medium-sized electrical companies that have long relied on low-cost competition strategies will change. Economic development that has long relied on cheap production factors The model will also be unable to maintain, which will undoubtedly form a huge market thrust for economic transformation.
In addition to recognizing the changes in the macroeconomic environment, we must solve the problems of the survival and development of the low-voltage electrical industry and promote its sustained, healthy and rapid development. We must also face up to the various contradictions accumulated in the low-voltage electrical industry for a long time, so as to fundamentally improve small and medium-sized appliances. The company's ability to withstand various risks.
All along, the industrial structure and product structure of the low-voltage electrical appliance industry are irrational. At present, the market is still dominated by the second generation of traditional products. There are few third-generation products, and the fourth-generation products are rare. The similarities, quality, and grades of most products in the industry have made the market competition increasingly fierce, and the phenomenon of price-fixing dumping is difficult to contain, and it has become increasingly fierce. At the same time, the lack of business management and international marketing capabilities, the lack of independent innovation capability, the lack of high-tech talent, and the severe shortage of scientific research funds have also become obstacles for small and medium-sized electrical companies.
Therefore, in response to this crisis, in addition to paying close attention to the macroeconomic situation, enterprises must ultimately rely on technological innovation, structural adjustment, transformation and development, and upgrading their own quality to achieve self-help. The author suggests that in the future, small and medium-sized electrical enterprises must not only implement information, intensive, automation, and mechanization strategies, but also strengthen technological innovation, replace labor force by updating equipment and automation, and increase labor productivity. At the same time, we must also resolve "high costs" through enterprise transformation, industrial chain integration, business model innovation, and technological innovation. In addition, companies must also be people-centered, gradually increase their salaries, steadily improve their welfare, care for and respect employees, strengthen skills training, establish a harmonious labor relationship, change the mentality of employees passing through, form a community of destiny, and reduce the loss of employees.
The author believes that the survival crisis encountered by the small and medium-sized electrical enterprises is expected to become the "inflection point" for the transformation of enterprises. I believe that as long as they actively channel and respond appropriately, they will certainly become a powerful opportunity for the transformation of China's SMEs.
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