The development of China's low-voltage electrical products has experienced eight stages of comprehensive imitation, self-design, replacement, introduction of technology, tracking of new foreign products, independent innovation, export to Asia, and global competition. The entire industry has grown to more than 1,000 series, with more than 10,000 production companies and 2,000 production enterprises above designated size, with an annual output value of nearly one trillion yuan. The situation of “three pillars” of state-owned, private and foreign-funded enterprises has also continued for many years. At present, the development of China's low-voltage electrical industry has encountered the following problems, hoping to attract the attention of the majority of the industry:

First, the top ten development bottlenecks

1. Technology short board has become the biggest bottleneck

        At present, China's low-voltage electrical industry is at a medium-to-high level in the world, but China's low-voltage electrical industry is far from foreign countries in terms of process, design, manufacturing, standard systems, energy conservation and environmental protection, especially in terms of reliability. Rickets.

        According to statistics, well-known foreign companies can achieve a total sales of 8-10% in the research and development of low-voltage electrical appliances. The average low-voltage electrical appliance industry in China is invested in 1% to 2% of total sales. Large enterprises and group companies are generally only around 3%, and the gap is clear at a glance.

        Under the background of the global energy revolution, if China's low-voltage electrical industry does not increase investment in scientific research and new product research and development, and does not increase basic common technology research, and rapidly improve the independent innovation capability of enterprises, it will hinder the sustainable development of China's low-voltage electrical industry. And lost market competitiveness.

2. Cost increases, financing difficulties

        At present, with the tight funding, rising financing costs and rapid wage increases, the cost trend is irreversible. Many companies are already in a state of low profit and loss. At the same time, it has brought difficulties to enterprises to increase scientific research, new product research and development and technological transformation. In addition, the situation that the prices of major raw materials for low-voltage electrical appliances remain high and even continue to rise will be difficult to change.

3. Monopoly continues to strengthen

        State Grid Corporation, which holds more than 80% of the domestic market, is constantly building its own equipment manufacturing industry, such as China Power Equipment, Pinggao, Xuji, Nanrui and Shandong Electric. This makes the already overcapacity and fiercely competitive market face unfair competition caused by industry monopoly.

        In the future construction of UHV, smart grid, global energy Internet, etc., grid companies and most design departments are more inclined to foreign brands, and other domestic industries are gradually participating in the low-voltage electrical market, making domestic existing enterprises include excellent Enterprises are at a disadvantage in market competition.

4. Overcapacity, counterfeiting and low-end products are serious

        More than 85% of domestic low-voltage electrical appliance manufacturers are in medium and low-grade production. In order to survive in this cruel market, most enterprises choose to drive down prices and even counterfeit. However, the opposite is that enterprises enter another The cycle of vicious circle.

5. Research and development mode changes

        In the past, the pattern led by the institute to jointly design new products and produce in the whole industry has been completely broken. What followed was the independent development of new products by the company. This has led to a significant increase in the trial production and trial production costs of internal and external accessories and major component manufacturers, and the production volume of each accessory or component has been reduced, making it difficult to form a production scale and making it difficult to generate profits. The low enthusiasm of the accessory manufacturer also makes it difficult for the whole machine factory to develop new products.

6. Upgrade is becoming more and more urgent

        From the market situation, China's production of low-end low-voltage electrical appliances basically occupy most of the domestic market, but domestic high-end low-voltage electrical appliances, in addition to individual products can be evenly divided with foreign similar products, the domestic market share of other domestic high-end low-voltage electrical appliances is still very low. The performance of the first and second generation of low-voltage electrical products is backward and the profit is meager. The third-generation products can not meet the demand. It is imperative to develop a new generation of low-voltage electrical products.

7. The big impact of foreign brands

        The well-known foreign electrical industry has seized the low-voltage electrical appliance market. For example, ABB, Siemens, Schneider, Mitsubishi and other internationally renowned companies are all in the Chinese market. In addition to monopolizing the domestic high-end market, they have implemented a “localization” strategy to set up factories in China with sole proprietorship or joint ventures. They also have an increasing market share in the domestic mid-end appliance market, and are even spying on domestic In the low-end market of electrical appliances, the winner-take-all situation is taking shape.

8. Industry standards are chaotic

        Product quality and industry standards are uneven, which has become a stumbling block in the development of low-voltage electrical industry. The formulation of the reliability standard for low-voltage electrical appliances in China is still in its infancy, with narrow coverage and no system formation, so it is difficult to confirm the reliability level of the products.

9. Lack of talent

        Talent is the company's first resource. At present, the talent structure of low-voltage electrical enterprises is very unreasonable. Although they have abundant labor resources, the quality of labor is low. Most of the employees are migrant workers from Guangxi, Hunan and Hubei. Workers who are familiar with labor skills and familiar products There are very few R&D personnel in manufacturing process and product design and development.

10. Matthew effect

        The future industry will mainly be reflected in the adjustment of demand structure. The proportion of the middle and high-end market and some emerging industries will gradually increase, and the market concentration will increase gradually. The industry's reshuffle will inevitably intensify. In the future, the situation of strong and strong, weak and weak will be further increased, and even the Matthew effect will be formed. A large number of low-end and mid-range products will accelerate their exit.

Second, the top ten breakthroughs

        Looking back, low-voltage electrical appliances have been in China for 60 years. After compiling the top ten bottlenecks in the low-voltage electrical industry, Xiaobian will analyze and analyze the solution for everyone!

1. Product structure adjustment

        According to the national policy, the structure of low-voltage electrical products needs further adjustment in the future. Products that are backward in process, large in size, high in energy consumption and polluting the environment will be eliminated. During the “Thirteenth Five-Year Plan” period, UHV, smart grid, Internet power, global energy Internet, and China Manufacturing 2025 will increase the demand in the mid- to high-end market.

        The rapid development of new energy provides opportunities for industrial extension. The product field of low-voltage electrical industry can be extended to photovoltaic power inverters, new energy control and protection systems, distributed power supplies, energy storage equipment, DC switch electrical equipment, etc. And can provide a total solution. This area is a new important economic growth point for the low-voltage electrical industry.

2. Industry structure adjustment

        At present, there are more than 10,000 manufacturers in China's low-voltage electrical industry, but on average, each company's sales are less than 30 million. The electric tiger believes that according to the current technical conditions and production level, during the "13th Five-Year Plan" period, China's low-voltage electrical appliance production industry is relatively reasonable to maintain about 300 large and medium-sized enterprises.

        Large-scale enterprises with strong strength should try their best to develop into a comprehensive group company with power supply; enterprises with good strength and good conditions should develop and improve their own main products, and enrich the model specifications, and the relatively complete low-voltage electrical appliance specialized enterprises; Small and medium-sized enterprises with certain production expertise can develop into specialized production enterprises with low-voltage electrical appliances or specialized production enterprises such as power accessories and supporting products; and most small and medium-sized enterprises should consider structural adjustment and asset restructuring.

3. Policy tilt

        The state will improve the policy and legal system, solve the difficulties of corporate financing, broaden the financing channels of enterprises, the credit guarantee system, increase financial and financial support, appropriately relax the taxation of enterprises, and promote the relevant systems of government units to support quality enterprises, and strengthen the relevant The protection of enterprises can accelerate the technological progress, structural adjustment and support of such enterprises to open up markets.

4. Increase R&D investment

        The gap between Chinese local enterprises and foreign countries is also very large. During the 13th Five-Year Plan period, China's low-voltage electrical products will gradually pursue high quality, product reliability and appearance from the past. At the same time, increasing R&D investment, including equipment, design, materials, and processes, can shorten the gap with foreign companies, which requires improving China's manufacturing processes and manufacturing equipment.

5. Product replacement

        At present, according to the output value, the market share of the first generation products is 15%, the market share of the second generation products is 45%, and the market share of the third generation products is 40%. In the coming period, the development direction of China's low-voltage electrical industry is to further develop intelligent, modular and communicable, and the low-voltage power distribution and control system is gradually developing into intelligent network.

6.Intelligence is the king of the future

        The intelligent, networked and digitalized low-voltage electrical appliances are the future development direction, but higher requirements are also put forward for the integration of low-voltage electrical systems and overall solutions. This is because the low-voltage electrical industry is expanding into photovoltaic power inverters, new energy control and protection systems, distributed energy, energy storage equipment, and DC switching electrical equipment.

        Intelligent universal circuit breaker, intelligent energy-saving AC contactor, intelligent high-breaking molded case circuit breaker, selective protection household circuit breaker, automatic transfer switch, integrated intelligent control and protection device for a new generation of high-performance power distribution system The key technologies of doubly-fed wind power converters, SPD, smart grid end-user equipment and other technologies will be strongly supported by the government and the market, enabling China's low-voltage industry to integrate with international leading technologies as soon as possible.

7. Improve the industry standard system

        Chinese electrical appliance companies should adopt uniform standards as soon as possible and pay attention to the trend of international standards. At the same time, electrical companies should always pay attention to foreign new technologies, and they have already improved their competitiveness with foreign electrical products.

        The research and development of new products must consider the selection of materials and the manufacturing process in line with international standards, so that China's low-voltage electrical products can truly develop into "green, environmentally friendly, low-carbon" electrical products.

8. Design - Brand - Value

        Nowadays, in the increasingly competitive low-voltage electrical industry, the evolution path of “designing to enhance the brand and design to get rid of the low-end” is growing stronger. And some forward-thinking companies have bravely taken solid steps to comprehensively enhance the competitiveness of brands and products through cooperation with well-known design companies.

9. Strengthen exports and create a dumbbell-shaped development model

        The development of mid-to-high-end brands and overseas businesses, stabilizing overseas markets and forming breakthroughs, forming a dumbbell-shaped development state, is inevitably an important wing for future industry growth. With the globalization of the market, the mutual penetration of multinational companies and domestic enterprise markets has become an inevitable trend in the development of the low-voltage electrical industry. This penetration includes both the penetration of high-end products from domestic companies into foreign markets, as well as the penetration of products from multinational companies into the domestic middle and low-end markets.

10. "Internet" strategy

        According to the thread advocated by Premier Li Keqiang, learning the BAT business model, let low-voltage electrical appliances go to the net, and do the e-commerce of low-voltage electrical appliances, is bound to be the choice of many enterprises. Since it is possible to produce enterprises such as Chint and Delixi on the basis of the family workshop in Yueqing, Wenzhou, there will inevitably be a series of enterprises to come out with the help of hardware and software services e-commerce model and strategy.