Spraying Heads,Jetting Heads,Hygiene Hot Melt,Environment Friendly Spraying Glue Wahrheit Automation & Trading Co., Ltd. , https://www.wahrheitcn.com
Liu Yuhui, a member of the China Chief Economist Forum, said: What we are going through in 2017 is: the time when a bubble is shrinking, the process of returning from virtual reality, the stage of reshaping the balance sheet and revitalizing the rate of return on assets.
This is the basis for our understanding of what is happening today and what will happen in the future. In this environment, technological innovation and improving product quality are the key to supply-side reform.
However, in recent years, due to the sluggish capacity oversupply market, many companies either have no business or they rely on low profit margins to survive, and even have to lose money. In addition to the external environment, internal vicious competition is also devouring the manufacturing industry. scene. The result is "fatigue yourself, starve to death, kill the user." As the saying goes, "The essence of buying is never sold." It is not that the insider never knows how deep this industry is. In the recent period, more and more corporate officials complained that low-price competition has disrupted normal industry order. "No matter what kind of products, there are always lower-priced products. No matter how low the price given by the downstream users, someone will take orders. From a production point of view, such prices cannot guarantee profitability at all. If they can do it, it must also be cutting corners in raw materials and processes.†In the long run, the healthy development of the industry is bound to be threatened.
It is their own vital interests that seek to harm the cheap and ultimately harm, and the vicious circle of reunification is formed. The buyer thought that he had taken up a great deal of money. When he knew that he had been duped, he transferred the “cheap†copy to the next “cheapâ€, and the cycle that was eventually issued was “the essence of what was bought and not soldâ€. sigh. We often hear complaints from various customers. May I ask if you can purchase high quality products at a lower cost?
Companies that take orders at low prices only value the immediate interests. The seemingly compelling individual choice is jeopardizing the healthy development of the industry as a whole. Such business model will not last long, and in the course of industrial transformation and upgrading, companies will also lose their ability to upgrade from product development, process innovation, etc. Their development path will only go further and narrower, and in the end it will be a dead end. .
The price war is not as good as the game between high-quality products led by technological innovation. It is an all-round improvement for enterprises and a good strategy for lasting development; tapping their own advantages and gaining more benefits. Relying on products to dominate the market, profit must be overcome by lean management to overcome the price war and promote industry-side supply-side reform.
The titanium dioxide market in China has experienced a red flag in 2016, which has prompted 2017 companies to improve product quality, accelerate industrial transformation and upgrading, and become the mainstream of the market with self-discipline and orderly development. The price war will surely turn into competition among high-quality products led by technological innovation. The market will appear diversified products to change the past "homogenization", the market price gradually realize its due value. Currently, except for the “Limiting Load Order†that raises transportation production costs, and “business tax increases†to increase business tax, 17-year environmental protection inspections will become increasingly stringent, and product quality will increase and become more specific, plus reasonable increases in raw materials and labor. With various cost increases, the overall cost of Titanium Dioxide will increase by about 20% in 2017. “Rebuilding the balance sheet and revitalizing the return on assets†is a reality that companies will face, and they will be underestimating the price of titanium dioxide in the market. Enterprises can adapt to the situation when the market price is high and improve their own healthy development or severe test.
Driven by the "supply side" reform and the "tightest environmental protection law," China's titanium dioxide industry has undergone a transformation and upgrade, and the industry has become the mainstream of the market with self-discipline and orderly development. Laggards will be eliminated, and product adulteration and price war will be replaced by high-quality products led by technological innovation.