Analysis of industry trends in the pump market

At present, the dispersion of the pump industry in China is quite high, and the market is still in a state of dispersion of free competition. The competition among enterprises in the industry is fierce, and the market share is increasingly concentrated in several advantageous enterprises.

   First, the traditional state-owned enterprises have gradually declined, and the situation is worrying.

   Once upon a time, the pump industry represented by state-owned enterprises made great contributions to the national economy, but now the state-owned enterprises that once flourished are no longer in sight. On the one hand, the output of its traditional products and general-purpose pump products has dropped very seriously, and many have fallen to less than 1/4 of the original production volume; on the other hand, high-tech pumps and special pump products that have been formed in recent years are also The production capacity is largely idle due to insufficient orders. Only a small number of enterprises are still struggling to support by virtue of their own technical advantages. The product positioning and market positioning of the company are in a chaotic and embarrassing situation.

   Second, emerging private enterprises are increasingly becoming the backbone of the market

   Thanks to the new stage of national reform and opening up, many private enterprises that originated in Jiangsu and Zhejiang provinces have sprung up with their scientific and flexible operating mechanisms and sound and perfect sales networks. These private enterprises have new systems, no historical burden, scale advantages in production and operation, sales network covering the whole country, and gradually progressing towards group or successful group restructuring, showing strong development momentum. In today's pump market, the number of private enterprises is far greater than the number of state-owned enterprises, and the output value of private enterprises is far greater than the output value of state-owned enterprises. According to the latest statistics, the output value of state-owned enterprises and state-owned holding enterprises only accounts for about 30%, private enterprises account for more than 50%, and the enterprises with the highest annual output value of pump enterprises are already private enterprises. It can be said that the status of private enterprises as the main body of the industry and the backbone of the market has been formally established, and will play an increasingly important role in the future development.

   Third, foreign (joint venture) enterprises quickly follow up

   Mainland China is known as “the only market in the world that has not yet been eroded.” With the reform and opening up and China's accession to the WTO, many international companies in various industries are rapidly occupying the Chinese market.

   The advantages of foreign capital and joint ventures are strong capital, advanced technology, flexible employment mechanism, and no historical burden. The shortcoming is that the time to enter the mainland is short. At present, only a part of high-end markets can be occupied, and the marketing network needs to be improved. Form a strong competitive edge.

   Fourth, the prospects of many SMEs in the industry are subtle

   Since the traditional pump products are labor-intensive products and the industry threshold is not high, thousands of small and medium-sized enterprises distributed throughout the country are derived. The survival of these small enterprises is mostly dependent on a larger enterprise, some places. There has even been a situation in which “one enterprise is a pump and all people are pumps”. They generally belong to the "three no" enterprises without technology development, no sales network, and no after-sales service. Due to the pressure of survival and the drive of interests, they often pay no attention to quality and service, relying on cost and price advantages in the chaos. Take profit.

   It should be said that this is a normal phenomenon of market competition, or that this is a development stage that China's pump industry must inevitably experience. The development track of the global pump industry market also verifies the law of market development from decentralization to consolidation. The “Zhongtong Association and Chinese and Foreign Enterprise Technology Exchange Conference” held in Beijing in 2003 has already transmitted information on industrial restructuring and industry consolidation. The advancement of this process will inevitably greatly reduce the living space of many SMEs in the industry. It is conceivable that some of the "good assets" of many small and medium-sized enterprises will be gradually compiled; and the "three assets" of "non-performing assets" will gradually be eliminated by the market.

   Foreign capital and joint ventures occupy the high-end market with their many years of brand advantage; some old and wind-stricken state-owned enterprises are separated by some traditional advantages; the small and medium-sized enterprises in the industry are struggling in the low-price mud; emerging private enterprises are rising, representing Hope for the future of the industry.

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Reprinted: China Pump Industry Network