Domestic cable technology upgrades and product innovation capabilities are insufficient. Some production companies tend to focus only on short-term money, thus causing the high-end market to fail. What is worrying is that special cables such as ships and aerospace are basically monopolized by foreign countries, and there is a serious shortage of technical input. Basically, domestic production of ordinary cable products with low technical content is the main issue.

Some experts believe that even if the cable market demand has opened up, there are very few local companies that can support such a large market. Except for a few large-scale enterprises, domestic cable companies almost always take the low-quality, small-brand route and can only compete in the low-end market for a long time, and they are often weak for high-end market projects.

Due to the low level of equipment in small and medium-sized cable manufacturers, it is difficult for domestic special cable manufacturers to form core competitiveness, and it is even more difficult to withstand market shocks. In recent years, the cable industry has become more and more vocal about the market's "abandoning the low from high," especially since this year, due to the continuous decrease in the profit rate of the cable industry and the increase in production costs, the processing costs have been extremely low.

Low concentration is the root cause of vicious competition in the cable industry and overcapacity. At present, China's top ten cable manufacturers occupy only 7% to 10% of the domestic market share, and the largest cable companies account for only 1% to 2.5% of the market share, while cable companies in Europe and the United States have a concentration of more than 80%. The low degree of concentration has become a difficult problem that has been hindered by the development of the domestic cable industry. Some experts believe that in the face of the problem of low concentration, only by increasing the integration of industry resources, efforts to expand the market share of enterprises, etc., can increase the stability of the domestic wire and cable industry. The manufacturing scale of China's wire and cable industry has increased rapidly, developed extensively, and expanded in an irrational manner. The technical progress and product upgrades are slow, and the repeated construction is very serious. As a result, the entire industry is seriously overcapacity. Most of the companies are engaged in mid-to-low-end market shopping and melee, high-end markets, high-end brands fall, and counterfeits and counterfeits are flooded, resulting in low profits. .

The reason why China's cable manufacturers have a meagre profit is that the products in the wire and cable industry in China are mainly low-end products, which cannot meet the requirements of R&D and manufacturing processes of cable oligopolies such as German Presmann, France's Nexans, and Japan’s Furukawa. Control level.

The lack of R&D and production capacity for domestic high-end products has led to serious problems in the industry. Due to the lack of unified planning, it has caused a serious surplus of production capacity. At present, the development of the wire and cable industry in China is an extensive and extensive mode of production and operation. Most SMEs attach more importance to short-term economic effects. Few companies are willing to invest manpower, material resources, and funds for the research and development of high-end products. Production therefore creates a vicious cycle that can only compete in the low-end market.

From the perspective of the layout of the United States General Cable, France's Nexans, South Korea's LS Group and other developed cable manufacturers entering China, it is their common goal to compete for the special cable market and occupy the high-end market. From this, it can be seen that the development of special cables is a powerful means of “abandoning the low from high”.

Then the domestic cable companies should proceed from what aspects of the high-end market. This problem has also puzzled some cable manufacturers. In fact, from the perspectives of the scale of the rail transit industry, ships, aerospace industry, new energy industry, offshore oil and natural gas engineering projects, and the sharp increase in market demand, the development and production of special cables is a convenient way.

According to statistics, at present, the sales of special cables account for about 30% of the total sales in the domestic cable market. According to rough estimates, the annual sales of special cable products in China are around 40 billion yuan. And with all walks of life ushering in major construction, the demand for special cables will be even greater.

Of course, although the threshold of special cables is higher than that of low-grade cables, as a large-scale cable manufacturer with R&D capability, it has sufficient capacity and funds to increase the research and innovation of special cables, thus taking the opportunity to change the concentration of domestic cable industry. Not a high situation.

If the domestic cable manufacturers cannot work hard and develop forces from management, products, technology, and markets to fight against foreign giants, there are only two possibilities for waiting for China's wire and cable manufacturers. One may be defeated. Closed down; another may be easy overnight, acquired by foreign giants, mergers. “The domestic cable companies can only achieve new breakthroughs in the global market competition structure of China's wire and cable industry by increasing R&D efforts, branding local brands, taking the road of differentiated competition, and integrating industry resources,” said a leader of a cable company. Said with emotion.

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