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Himfr.com Reports Explosion-Proof Electrical Industry, Breaking The "bottom" Circle
When the low-voltage electrical widespread price war deep mud of the time, the city has explosion-proof electrical industries, such as a "dark horse", since last year, the product price has not dropped, but steadily. Behind this is because the Government, associations, enterprises build of a joint response system, constantly trying to start breaking the "bottom" circle. This gives the government and enterprises have long plagued the "lower price competition" dilemma provides a possible break. "Lower price competition" is an infectious disease, almost to the Yueqing infected with each of the manufacturing sector. Like C45 switch, multinational companies offer more than three U.S. dollars, while the price is probably exported to Japan Liushi RMB 8.
It is inconceivable that last year in the energy, against the background of rising raw material prices, low voltage electrical appliances prices have declined. At present, low-voltage electrical industry Liushi only 6% of gross profit, net profit even fewer. Many companies have a loss, but guards its market share and struggling to support. Last year, the city convened a meeting of relevant departments of electrical industry forum to discuss "containment down in price." At the meeting, the size of the boss eloquently, "the bottom" of the disadvantages After the meeting, Wenzhou Electrical Industry Association issued a memorandum of the cost price. However, the memorandum Before the ink was dry, the price war fought on the open again, so that businesses and the local economy was "very hurt."
Explosion-proof electrical appliances over the city more than 130 manufacturing enterprises with annual output of mining explosion-proof electrical appliances, chemical plant explosion-proof electrical appliances, mining cables, miner's lamp, fan and other products account for 65% of the market value of more than 50 billion yuan . With other industries, this industry is also popular "bid" Pain. From the second half of 2004, municipal explosion-proof electrical industry associations at the municipal quality supervision bureau and the member companies with the support of attempts to establish a joint response system, and removal of the "bottom" vicious circle. November 6 that year, all member enterprises focused on opening a "Encounter", was formed a mass margin system: each firm will file the categories according to the Association the quality of deposit to pay 60,000 yuan (A class), 50000 Yuan (B category), 40,000 yuan (C category), while the implementation of peer-bargaining and industrial self-disciplined. If the enterprises to violate the requirements, or for product quality were investigated, the margin the quality of development funds to the Association, companies will no longer recover. Last year, New Year's Day, the member companies started selling products the industry standard prices.
To support this new system effectively, Dajiazhilie Municipal Quality Supervision Bureau to maintain a high pressure situation, especially the increase of undocumented unlicensed businesses, and individual nests of the investigation and punishment, in order to prevent "price competition" and create a rebound a favorable external environment. After a year of renovation and build, explosion-proof electric industry are basically out of a "bargain" vicious circle. Trade associations of civil society is, essentially, still in the stage of self-development and industry consolidation, despite the limited influence, but as a bridge of communication between the Government and enterprises, through the adoption of the development of quality assurance prices, the fight against counterfeiting, the media and propaganda means of governance to safeguard the industry's own interests and to stop enterprises competing among the chaos caused by lower prices, it should do well. Explosion-proof electrical industry association attempt, is a good start.
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