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Price and technology are the biggest obstacles to the development of Shanghai reducers in China

Source: rubyrad.com Release time: 2014-06-23

Although with the development of technology, Shanghai reducers have also developed quite well in China, but because of the problems of Shanghai reducers in China, the development of Shanghai reducers in China has not been a long time. Very good, domestic demand for Shanghai reducer also needs to fill the gap abroad. Why is this? Why has the Shanghai reducer not been developed in China? According to expert analysis, the following two reasons are summarized for the reasons why the Shanghai reducer can not be developed in China:
1. Price off
At this stage, there are many large and small manufacturers of Shanghai reducers in the country. The products they produce vary widely, and they are mainly low-end products. There is no uniform standard for product performance. There are still relatively few large enterprises with formal, core technology. In this way, with the continuous transparency of the market, and under the premise of not being able to break through technical barriers, price wars have become one of the main means to dominate the domestic reducer industry competition for a long time. In the fierce market competition in recent years, it is not difficult to find that many changes have occurred in the marketing channels of reducers, and dealers and agents are slowly fading out of the market. Many production companies have lowered their attitudes and started to provide services directly to customers. The reason is that the decrease in profits has made the checkpoints in circulation less profitable. Changing from consignment to direct sales may be a good thing for manufacturers, but for the entire reducer industry, long-term low-profit operations make enterprises lack funds for technology research and development and production investment, which is not conducive to the innovation and development of enterprises. .
2.Technology
Subject to the unhealthy competitive environment brought by the domestic market, the technical content of China's reducer products is generally not high, and product innovation is behind several cycles abroad. The vacancy in the market for high-end products has led many powerful foreign companies to enter the Chinese market. Most of these companies are multinational companies that have established production bases in China. With the advantages of global capital and global technology, they have long occupied a major share of the high-end market. This has led many domestic companies to transform and start OEM business for foreign companies. It is reported that China is a large country in the production of reducers, but only 13.8% of the products have invention patents, and less than 20% of enterprises have independent brands.
It can be seen that the lack of market and technology has led to the development of domestic reducers into a long-term vicious circle. In the future development trend of technology-dominated market share, if Chinese enterprises want to get rid of the inherent disadvantage of technology, they must correct the development trend of the market and incorporate the performance, technology, and after-sales factors of the reducer into the areas of emphasis. During the "Twelfth Five-Year Plan" period, the government's support effect on the development of the reducer will gradually appear. At the same time, under the competitive mode of market superiority, some enterprises will be out of the industry. This is more than the development of the entire industry. The advantages outweigh the disadvantages. In this way, as the country attaches importance to the equipment manufacturing industry, the development of the reducer industry will slowly recover, and the domestic Shanghai reducer may also have a broad development prospect.

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