"After decades of development, China has become the world's largest valve producer, valve annual sales of nearly 300 billion yuan, processing technology, equipment level, production area are in the forefront of the world. But at the same time, large but not strong, complete but not specialized, have but not refined, is still restricting the industry's profitability to enhance the main factors. Song Yinli, Deputy Secretary General of China General Machinery Industry Association and Secretary General of valve branch, said.
A group of data provided by Song Yinli show that the annual sales of domestic valves are close to 300 billion yuan, but the profit is only 16 billion yuan, the profit margin is about 5.3%; while the annual import of more than 16 billion yuan, the profit is more than 8 billion yuan, the profit rate reached 50%.
The gap is obvious. Apart from the lack of R&D capability and high-end products, the main reason for this phenomenon is the vicious competition caused by excess capacity, which is the main reason that nibbles the profits of enterprises. Especially over the years the valve marketing links formed scattered marketing model, but also aggravated the market low price, vicious competition situation.
A Fujian valve salesman who has worked hard in Shanxi Province for more than 20 years told reporters: "According to estimates, there are about 100,000 people in the country composed of the sales force agent more than 1700 valve manufacturers, in order to get orders everybody competing to bargain, beat the blood, kill to the end not only no profit, some enterprises also We must sacrifice the quality of products, and even some enterprises steal cement in the valve.
This vicious competition on the production enterprises, dealers and users are a kind of injury, people feel heartache!Wang Funing, chairman of Shanxi Water Heating Valve Chamber of Commerce, said that Shanxi is an important energy province and the largest coal production base in China. Coal chemical industry, coal bed methane, coking and other industries are in the leading position in China. Valves are in great demand and the annual sales of valves in Shanxi Province exceed 1.5 billion yuan. However, there has been no large-scale valve manufacturers in Shanxi Province, but also the lack of influential valve distributors, valve sales exist in the fish-eye confusion, low-price competition in the market disorder, scattered, low-end, homogeneous, low-price competition destroyed the market fairness, disrupted the market order.
"Shanxi valve sales market disorder is a microcosm of the national valve sales link, but also the current development of the valve industry is one of the constraints. Establishing fair competition and brand awareness, maintaining market order and standardizing market behavior have become the problems that the industry needs to solve energetically. Song Yinli said.
Innovative marketing on platform"The chronic disease of vicious competition has seriously affected the healthy development of the industry, must be eradicated as soon as possible, the valve industry can develop healthily." Wang Funing, who has many years of experience in valve marketing, realized this from a very early age and began to think about how to alleviate the pain in this industry. "At present, it is the best stage of innovative marketing model. In the age of Internet and big data, the market has become more and more transparent. The former "manufacturer + authorized distributor" agent model has become infeasible.
Valve users are increasingly inclined to dock directly to the manufacturer. And the valve manufacturer can not do for each user, each valve to provide timely and efficient service, the valve industry needs to seek a new pragmatic and effective cooperation model to adapt to the changing market environment.
Wang Funing pointed out that in order to maintain a fair development environment of the valve market and promote the healthy development of the valve industry, Shanxi Water Heating Valve Chamber of Commerce will innovate and develop ideas and models, integrate resources of all parties with the Chamber of Commerce as a link, strengthen exchanges and cooperation, and establish close exchanges and cooperation for valve manufacturers, distributors, purchasers and engineering companies. The platform should give full play to the advantages of all participants in the market, reduce circulation links and reduce operating costs.
The Chamber of Commerce has proposed that intensive, large-scale, specialized storage and transportation, sales, maintenance and technical services model will be used to resolve the past scattered, low-end, homogeneous, low-cost competition industry pain points, create a new ecosphere and market atmosphere, through improving product quality, strengthening scientific and technological innovation, innovative service model, cultivate the true Positive market competitiveness. At present, many member enterprises of Shanxi Provincial Water Heating Valve Chamber of Commerce have developed from agent sales to comprehensive service providers from pre-sale service to after-sale service, from installation to maintenance, which not only saves sales and service costs for valve manufacturers, but also makes users feel relieved and relieved, and can enjoy professional services in time.
Cooperation to achieve mutual benefit and win-win situation At present, under the impetus of some pilot enterprises, the partnership mode of joint investment brand landing in the valve industry has begun to emerge in Shanxi.
According to Chen Chengyi, chairman of Shanxi Brand Base of Lianggong Valve Group Co., Ltd., Lianggong Valve Co., Ltd. cooperated with Duplex Valve Co., Ltd. last year to build Shanxi Brand Base of China Lianggong Group, which integrates warehousing and maintenance, in Taiyuan. It not only stores all the products of Lianggong Group, but also sets up a professional pre-sale base. After-sales service and maintenance service team, to solve the good industrial group in Shanxi landing short board, set up a benchmark valve marketing.
Duplex valves make use of the advantages of Shanxi cast iron resources to produce low-pressure cast iron valves, supporting the national dealers of Lianggong Group, truly achieve mutual benefit and win-win situation.According to Wang Funing also said that duplex valves use the existing channel advantages in Shanxi Province opened the first 4S valve supermarket in Taiyuan and Yuancheng formed a chain operation. In the valve supermarket, users can purchase most of the general valve fittings. Shanxi