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Valve Market Analysis: how to turn the valve industry for survival in the gap

Time:2021/11/22Browse:1474

With the decline of China's foreign valve export market in the past two years, especially in the European and American markets, it is not difficult to see from the published data that when the whole valve industry is declining, the downward trend of traditional ball valve, gate valve and stop valve is particularly obvious. The person in charge of some valve enterprises said that the valve was very difficult to do last year, and the situation may be worse this year. When the sales volume of valves decreases, the profits of traditional ball valves, gate valves and stop valves are much lower than those of other valve products. Some industry experts also predict whether this year's performance indicates that ordinary ball valves, gate valves and stop valves tend to be saturated in the current market.

With the decline of exports, some original export enterprises began to move to the domestic market, which made the originally tense domestic valve market more competitive. The traditional ordinary ball valve, gate valve and stop valve market began to fight a fierce price war. A person in charge of an enterprise said that the development of the valve industry in recent years is not optimistic, especially the sharp decline in foreign exports in one year, which surprised many enterprises. In order to pursue profits, some enterprises began endless price reduction and promotion, and used low prices to obtain returns. One reduced prices, the other lower prices, and the next reduced again. In this way, The benign competition in the industry has been destroyed, and everyone can only make an issue on the price. From the first half of this year, the whole valve industry still has no good way out in the cruel market, and enterprise profits less than 5% can be found everywhere. This is why some industry experts predict that the valve has become saturated in the domestic market.

For enterprises, an important aspect of improving profit growth is to control production costs. With the aggravation of the difficulty of market sales, the labor cost and the rent of enterprise dealer stores are becoming more and more expensive, which makes the valve enterprises that were originally at the forefront of the storm fall into a more embarrassing situation. The competition in the market is becoming more and more fierce, and life is more difficult for enterprises. The turnover is decreasing day by day and can't sell many products. Sometimes some dealers don't even open for a few days, but the store rent is higher and higher year by year. It's good not to make profits or lose money at the end of a month.

Some people in the valve industry, which has its own heroes and strives to survive in the cracks in troubled times, also live well and brilliantly. Enterprises can only realize the sustainable development of the valve industry by accelerating the integration of the valve industry with international standards, improving the competitiveness of enterprises and regions, and promoting the quality improvement, transformation and upgrading of the valve industry. In the most popular words, that is, how to increase revenue, reduce expenditure and open source, form effective strategies and tactics, open up more sales channels and improve effective production capacity by building reasonable strategic objectives, so as to obtain more orders; Throttling, through the correct analysis of manufacturing, marketing, development, finance and other costs, to achieve effective cost control, so as to guide enterprises to a benign development path.

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