The "smile Curve" Strategy - And Stronger Domestic Wire And Cable Industry

Cable industrial manufacturing base in the world

, after three major shift, the final branches in China. At present, China has become a global cable manufacturing base, China's cable industry's development of the world's cable industry has a pivotal role. However, China is now only a cable-producing countries, rather than power.

Although the domestic cable industry in all of the electrical industry, the output value of top - According to statistics, wire and cable industry in 2006 the output value of more than 403 billion yuan - but its development still has many drawbacks. Industry experts generally agreed that the low degree of industry concentration, product homogeneity serious, and raw materials is not high-tech issues have become an obstacle to the development of the cable industry a major factor.

How to effectively crack these problems? Recently, the domestic cable specialists out of a recipe: Use "smile curve" out of the dilemma in development, calling on cable enterprises in their efforts to squeeze into the "smile curve" of the two in order to develop high value-added products.

Originated in the computer industry's "smile curve" and displaying the content are: value added generated by manufacturing enterprises in at least part of the assembly process, but not with the relative stages of development and design and marketing services, is a source of value-added generated, which the assembly process at the bottom of the curve, developing the design and marketing services are located at both ends of the curve. Domestic cable experts "smiling curve" concept to join the cable industry-specific content, the upper reaches of mineral resources and service users were a "smiling curve" at both ends.

At present, the domestic cable industry, mostly concentrated in the manufacturing stage, in the "smile curve" of the trough, resulting in the added value of the minimum. As the margins are thin or unhealthy competition among enterprises, negative phenomena such as fake and shoddy products despite repeated prohibition.

Industry experts point out that although the domestic cable industry is still faced with a good development period, but, if the cable companies are not seizing the opportunity to "smile curve" at both ends of development, and its future prospects are worrisome. The cable industry to survive in a difficult environment, to learn the industry chain and market value chain phase adaptation. Innovative ideas of enterprises, 46% came from users, how to serving our customers is the company the biggest problem. Cable companies according to user needs, and constantly develop new products and new technologies. At the same time, but also to the upper reaches of the mineral resource development, formed a complete industrial chain, thus effectively avoiding the impact of rising raw material prices.

According to reports, the world's large-scale cable manufacturing companies are generally in control of upstream raw material resources, while also keeping user needs to provide cable design, manufacture, maintenance, full service.

In the market, driven by the integration between the domestic cable business trends are already visible: TBEA annexed the three-day cable factory, once the wire industry, one of the Three Red Banners, Zhengzhou Cable (Group) Co., Ltd. has also been in the Section Ying Wa ... ... are constantly re-development and changes, some companies have begun to squeeze into the "smile curve" at both ends, such as the Anglo-owned Zhengzhou Branch Cable Co., Ltd., its industrial chain has been extended to the upstream copper mine; TBEA of wire and cable business to focus on the development of high-end cable products, its high-end power cable business is always growing into; and Far East, as the present value of the domestic production of the largest cable manufacturing companies, the development of electricity transmission and distribution of carbon fiber composite core aluminum strand and other new products a success.

Industry experts expect that more cable companies in the "smiling curve" concept under the influence out of their own unique road to success.

by: gaga

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