For a long time, low price competition is a common competition mode in color steel plate industry, and the supply side structural reform provides the basis for the transformation of development mode. The so-called supply measurement reform is to promote
structural adjustment and sustainable and healthy economic and social development by means of reform, starting from the improvement of supply quality. The application to the color steel plate industry means the change of business model and the promotion
of innovation model.
Price war unreliable color steel plate industry development affected
In recent years, due to the weak overcapacity market, many color steel plate manufacturers either have no business, or rely on low profit to survive, and some even lose money to
make a profit. In addition to the external environment, the internal vicious competition is also eating up the good prospects of the manufacturing industry. The result is "exhaustion, starvation of peers, pit death of users". As the saying goes, "what
you buy is never the essence of what you sell". It's not that the experts never know how deep the water is in this industry.
In recent years, more and more factory leaders complain that low price competition has disturbed the normal industry order.
"No matter what kind of products, there are always products with lower prices. No matter how low the price given by the downstream users, there will always be someone to take the order. From the production point of view, such a price can't guarantee the
profit margin at all. If they can do it, they must be cutting corners on raw materials and workmanship. " In the long run, the healthy development of the industry is bound to be threatened.
"Supply side" reform changes the mode of low price competition
It is the vital interests of the color steel plate manufacturers who are greedy for cheap, and the vicious circle is formed by greedy for cheap. The buyer thinks that he has taken a big advantage. When he knows that he has been cheated, he transfers
this "cheap" copy to the next "greedy and cheap" copy. In such a cycle, what he finally sends out is the exclamation of "what he buys is not the essence of what he sells". We often hear complaints from customers. Excuse me, can you purchase high quality
products with materials lower than the production cost?
Manufacturers who accept orders at low prices only value immediate interests, but the seemingly inevitable individual choice is endangering the healthy development of the industry as a whole.
Such a business model will not last for a long time, and in the process of industry transformation and upgrading, manufacturers also lost the ability to improve from product development, process innovation and other aspects. Their development path can
only be narrower and narrower, and in the end, it will be found that this is a dead end.
The price war is not as good as the game between high-quality products dominated by technological innovation, which is a comprehensive promotion for color steel
plate manufacturers and a good strategy for sustainable development; mining their own advantages and obtaining more benefits. Relying on products to occupy the market, relying on lean management to make profits will definitely win the price war and promote
the supply side reform of the industry.