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As a freely circulated commodity, price war or æ›° price competition is normal, but with the wave of price wars, not only many enterprises but also alarms for the development of the industry.
There is space
If the reporter does not deal with the machine tool industry for many years, he will also think that price cuts are a boon to the users, and the company can cut prices, indicating that there is still moisture and crowding healthier.
Moreover, in a fully competitive market, a good competitive company is not afraid of this kind of competition. The home appliance industry has experienced a fierce price baptism, and outstanding companies can stand out from the crowd and have their own voice in the domestic and foreign markets.
However, as the working machine of the equipment industry, the machine tool industry has its own industry characteristics: firstly it is a typical “processing-assembly†type of discrete manufacturing industry; secondly, the product structure and manufacturing process are more complicated, and the types of machinery and fixtures required for the manufacturing process There are many types of production technology, including order-type production, inventory production, order-assembly production and order design production, but most of the machine tool processing enterprises are mainly order-based production; The machine tool is mainly composed of two parts: electrical appliances and machinery. The electrical parts are mainly purchased out; the parts of the mechanical parts are obtained by three modes: external, self-made and outsourced; the workshop is generally divided into machined large parts workshop and machined small parts. Workshop and assembly shop.
Therefore, as a multi-variety small-volume production product, the machine tool is not comparable to the mass-produced and sold home appliances, and because of the complicated manufacturing, the precision of the product is strict, and its use is not comparable to the general daily necessities.
However, since 2000 and around 2011, the rapid development of nearly 10 years, coupled with the government's proposal to revitalize the equipment manufacturing industry, let more funds pay attention to the machine tool industry. For a time, capital crocodile interventions and small-scale factory workshops are numerous. As an industry association, the China Machine Tool Industry Association has told reporters that it is often heard that new companies are established and the data is changing every month.
The booming market has spawned many new forces. However, every time the cold current strikes, the stage of market shrinkage or downturn is not enough to support the expanding production capacity, and price competition naturally occurs.
For example, the recent market since the second half of 2011, due to the continued downturn, the general output value of industrial enterprises fell by about 20%.
Relevant data show that in 2012, with the significant decline in the market demand for machine tools, the total industrial output value of key enterprises fell by 15.6%. The output value of the gold cutting machine tool industry decreased by 17.9% year-on-year, and the profit reached 5.73 billion yuan, down 30.4% year-on-year. The two small industries of CNC system and rolling parts fell the most, down 38.4% and 34.2% respectively, and the drop in machine tool accessories also reached 22.8%.
In 2013, the situation did not show a big improvement, and the industry's hope for a rebound did not stabilize. Under the premise of inventory backlog and unclear market, price is undoubtedly the most effective promotion method.
According to the analysis of Tu Jingxian, in the case of the small-scale industry of Jinchee Machine Tool in January-November 2013, the total profit decreased by 82.1%, and the profit margin of sales revenue was only 0.65%, indicating that the business condition of the company has deteriorated and the profit level has been improved. Significantly reduced, some companies are already at a loss. The homogenization phenomenon of enterprises is very serious, and the signs of vicious competition in the industry have already appeared.
He believes that excess production capacity is the soil that produces vicious competition. The number of enterprises in the machine tool industry has expanded rapidly. In 2011, the number of metal cutting machine tools was 1,070, and the output was 403,935. However, by 2013, it had reached 1,264, an increase of 18.1%. It is estimated that the annual output will reach 858,100 units, which is an increase from 2011. 112.4%.
With so many companies, and Jinchee’s sales in 2012 was 18 billion US dollars, it is no wonder that some people say that moderate competition or elimination is beneficial to the health of the industry.
From this point of view, it is true that there is room for compression in the industry, but from another perspective, from the comparison of profit margins, the profit rate of gold cut products in 2012 was only 4.1%, down 1.5 percentage points from the previous year.
This shows that there is almost no room for price reduction. After all, modest profit is the guarantee of product quality.
Historical price war
Since the reform and opening up, China's machine tool products have been experiencing price competition as products that canceled the national directive plan and went to market earlier. In the 15 years since the mid-1980s, it has gone through three stages.
The first round was the price war on exporting machine tools from the mid-1980s to the early 1990s. After the State Council formulated relevant policies to encourage the expansion of exports of mechanical and electrical products in 1985, China's exports of machine tool products showed a relatively high growth trend. A group of export-oriented enterprises such as Jinan No. 1 Machine Tool Plant, Shenyang First Machine Tool Plant and Yunnan Machine Tool Plant at that time represented a large number of small and medium-sized enterprises to expand exports.
At this time, the export value of China's machine tools increased from 68 million US dollars in 1985 to 200 million US dollars in 1990. The vast majority of exported products are ordinary machine tools. But what comes with it is the “cracking†of the price of exporting machine tools. A considerable number of small and medium-sized enterprises have to express their "export performance" at the expense of corporate profits in order to expand the export value of machine tools. Some companies' product quality and level are quite different from domestic similar brand-name products, but they sell the products to the traditional Hong Kong and Southeast Asian markets at a price lower than 50%~60% of similar brand-name products, and then flock to new development. North American market.
The more and more chaotic price wars have completely disrupted the price balance of China's machine tools in the international market. Not only domestic export agents have bought prices for each other, but even affected the interests of agents in foreign markets. Many foreign agents spend The market that has been developing for many years of energy has been smashed by the low price of domestic low-end smashing. By the end of the 1980s, even the companies that have been exporting agents from China since the founding of the People’s Republic of China could not withstand the impact of domestic prices, so they had to give up dozens of jobs. The export machine tool agent of the year turned to develop its own manufacturing industry.
The second round was the price war on domestic machine tools in the mid-1990s. After the low tide of the early 1990s, with the new wave of domestic economic construction from 1993 to 1994, China's machine tool production increased from 190,000 units in 1993 to 260,000 units in 1994.
Blind optimism and erroneous market information orientation have led many companies to abandon product structure adjustments and strive to increase ordinary machine tool products by expanding production capacity. However, after a long period of time, after entering the country, with the “cooling down†and “soft landing†of domestic economic construction, the investment in fixed assets decreased, and the machine tool market began to shrink. By the end of 1996, the national machine tool inventory was up to 6 months.
Some companies that used to export in the past few years have begun to convert some of their export machine tools into domestic sales, and each machine tool gives thousands of dollars to agents and dealers, which has triggered a new round of machine tool prices. Big battle. And some large companies with strength and certain batches have begun to cut prices in order not to lose their market share. After that, the price of Chinese machine tools was like a domino that was pushed down, all the way down. In this price war, both the initiator and the passive have suffered heavy losses. At the same time, China's machine tool manufacturing industry has entered the dilemma of loss in the whole industry.
The third round was the price war between ordinary and CNC machine tools at the end of the 20th century. From 1995 to 1999, China's machine tool industry suffered losses in the whole industry for five consecutive years, and production and sales declined year by year. During this period, more than 50% of enterprises lost money, and 20% to 30% of enterprises went bankrupt or restructured. Faced with this situation, many companies have painstakingly begun to make great efforts to adjust the product structure. On the one hand, it is to compress ordinary machine tool products year by year, on the other hand, it has begun to expand the production of CNC machine tools with higher added prices.
However, due to years of losses, the independent innovation and development capabilities of enterprises are obviously not strong. With the help of the country's active fiscal policy of stimulating domestic demand and increasing investment in the second half of 1999, the investment in technological transformation has increased substantially, and the production and sales of machine tools have stopped slipping, and they have gradually recovered. The domestic CNC machine tools have grown rapidly. In 2000, the output of CNC machine tools reached more than 14,000 units, nearly double the number in 1998. With the improvement of the market, the new round of machine price wars has revived. Some enterprises have set up a "price reduction promotion" campaign while rapidly increasing production capacity, trying to rapidly expand market share from the way of small profits but quick turnover, while other companies have begun to cut prices in order to maintain their market share. Therefore, there has been a strange phenomenon that the market is selling well and the price is falling, and “increasing production does not increase efficiencyâ€. Among them, the most intense lathes in the price war include CNC lathes. In the case of several large lathe production plants in China from January to September 2001, the sales increased negatively (30%~50%). .
Undoubtedly, the price war is a double-edged sword. Every price of the machine tool will be transferred to downstream machine tool accessories, accessories manufacturers, downstream manufacturers to develop new functional components, which is not conducive to the technical upgrade of the entire industry functional components. In addition, raw material prices have increased, production costs have increased, and price wars have only made life in the machine tool industry, where profits are not high, even worse.
But at any time, there is no shortage of "problem", and perhaps this kind of action can break the surface calm and aggravate the changes in the industry.
Some people believe that price war is a manifestation of the market economy and should be freely developed with it. However, at present, China's market economy is still not perfect, yet mature, and blind and disorderly market competition will cause even greater disasters for China's machine tool manufacturing industry. And low-price marketing is just a marketing tool in the case of market saturation and inventory backlog, not the only means. More enterprises should go beyond the misunderstanding of prices and put their own business development foothold on product structure adjustment and market structure adjustment. 
Machine tool industry price wars reappear or start to integrate prelude
Abstract On the first day after work on the website, on the website of China Machine Tool & Tool Industry Association, the reporter stumbled upon an article by the director of the marketing department of the association, Tu Jingxian, and warned the industry to pay attention to curbing the vicious price competition in the industry. As a freely circulated commodity, price war or æ›° price...
On the first day of work after the holiday, on the website of China Machine Tool Industry Association, the reporter stumbled upon an article by the director of the marketing department of the association, Tu Jingxian, and warned the industry to pay attention to curbing the vicious price competition in the industry.