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Price War & Low-tech Hinder China's Mould Field

Source: Junying   Author: Junying   Posted: 2014-06-26 16:54:54   Hits: 409

A boat rowing against the current must forge ahead or it will be driven back. It is the same for enterprises in mould-making industry. Competition in this line is becoming fiercer day by day. If there’s no attention paid to it, the development of enterprises will be effected.


1) China’s mould field faces emerging problems.

Of the whole moulds traded in global market, products made in China account for a large percentage.China has become the main moulds supplier in the world. However the development of mould industry is accompanied by problems, such as the slow progress of research and development system, low profits of exports and low performance level etc. What’s more, small scale of enterprises, low concentration degree and increasing price of raw materials seriously hinder the further growth of mould field.


2) Price war hurt all participants

Chinese cheap labor has always been the most competitive factors in the international manufacture line. The whole economic status is favorable now. These facts bring great development prospects for China’s mould industry. In spite of the positive development trend,China’ mould industry still linger at the low position of world mould field. This is a result of the long-term price war in Chinese market.


There are a large number of mould manufacturers inChina. The excess capacity and overstocked products result in exceeded supply in the market, therefore the producers seek for lower prices to promote the sales quantity. This is a cut-throat competition and will definitely hurt the whole line. It is urgent for the firms to shift from the competition of price to competition of science technology.

 

3) High technology is in great demand.

Chinese mould enterprises must devote to change the current situation, with transformation of competitive mode as the first step. Science technology is the first production power. The upgrading of technology will greatly promote both quantity and quality of production.

 

During the whole process, related industries and enterprises should take a panoramic view of the development. They should focus on the research of new technology and gradually form a comprehensive scientific research and development pattern which covers multiple fields with labor division and coordination. They should aim at producing mould products with independent intellectual property rights.

 

All in all, with the involvement of advanced production experience, technology and high level talents, Chinese mould field will definitely makes a striking progress in the near future.