With the rapid expansion of changes in the power industry and distribution industry and power industry, low-voltage electrical industry challenges and opportunities. Among them, the "Twelfth Five-Year" period, investment in the national grid in the smart grid and smart grid construction aspects of a total of 1.5 trillion yuan, which is about 300 billion yuan a year, which will undoubtedly ensure the steady growth of low-voltage electrical appliances, while the urban population rapid growth will boost power generation and consumption growth, low-voltage electrical future market development space will continue to enlarge; 2015, strategic emerging industries will be a healthy development, coordination and promotion of the basic pattern of upgrading the industrial structure to promote enhanced role, increasing the value of gross domestic product (GDP) and strive to reach about 8%. By 2020, strategic emerging industries accounted gross domestic product (GDP) and strive to reach about 15%.
Development of these industries are to low-voltage electrical in particular the high-end products a huge space for development. However, at the same time, the development of low-voltage electrical market good, the market presence of various problems revealed beyond doubt.
Product repetitive production
Our low-voltage electrical industry after 50 years of development, low-voltage electrical industry from simple assembly, imitation manufacturing to design their own development, has formed a complete industrial system, extensive use of its products, the market has great potential.
Initially scale private enterprise engaged in low-voltage electrical appliances are small, due to the blind on the project, setting up shops, causing serious regional industry convergence, low economic efficiency, low-level redundant construction, resulting in product backlog, energy, waste materials, low economic efficiency adverse consequences.
Statistics show that domestic low-voltage electrical products, approximately 1000 series, the output value reached 20 billion yuan, with the above-scale manufacturing enterprises over 2000, mainly in coastal areas such as Guangdong, Zhejiang and Shanghai provinces. Currently, low-voltage electrical products in the first generation to third generation technology level, the fourth generation of the product is still under development research being; domestic low-voltage electrical production and small-scale enterprises, too many, more than 90 percent of enterprises in medium and low repeat the production times of products, market products, "three generations of coexistence." Value calculated in accordance with the first generation product market share of 15 percent, the second-generation products for 45% market share of the third-generation market share of 40%.
Our low-voltage electrical industry, technology and production levels are relatively weak, the relative dispersion of various resources, still repeating the field of R & D in low-end and mutual imitation stage. In addition, the strong electric companies large foreign "invasion", formerly domestic enterprises constantly being eroded in the low-end market, an increasingly competitive industry. Price war and channel war intensified, the domestic low-voltage electrical industry "warlords melee" great environment deteriorating.
"Low-voltage electrical industry, many manufacturers, counterfeiting and price competition still exists, so that the average low-voltage electrical products have been in low-profit status, has led to the development of the original play a major role in the industry's low-voltage electrical products such as DW45 universal circuit breaker profit also decreased significantly." Not willing to disclose the names of a company manager, told reporters bare holds many lessons brutal facts. "The current, electrical fittings business does not attach importance to the development of products, electrical companies perform relatively backward IC issues such as international standards, are the existence of low-voltage electrical industry criticized." And the reporter asked the person in charge of a number of companies, the answer this is true.
In fact, China's low-voltage electrical industry, technology and production levels are relatively weak, mostly small-scale enterprises, the relative dispersion of various resources, still repeating the field of R & D in low-end and mutual imitation stage. Objectively, according to market research national policy direction, in the next period of time, the structure of low-voltage electrical products requires further adjustment, backward technology, high energy consumption, pollution of the environment of the product will be eliminated. And this transition process, competition tends to be more intense.