Analysis of the development of e-commerce in the wire and cable industry

2021-12-10 10:13:46 浙江中钇电线电缆股份有限公司 Viewd 855

In recent years, the development of Internet technology in China can be said to be changing with each passing day. The vigorous development of e-commerce has brought new opportunities to many traditional companies. As a member of the traditional manufacturing industry, a small number of companies are still in the marketing model. In the original channel, the method of developing distributors is adopted to expand the market. Most companies have already realized sales transformation, using e-commerce to carry out new marketing models, and the wire and cable industry under the "Internet +" has exploded with huge innovation capabilities and new vitality.


There are currently three main e-commerce models in the wire and cable industry: one is the distribution model, that is, purchasing products from manufacturers and then reselling them to earn the difference; the second is the online shop model, that is, brand manufacturers or distributors use e-commerce platforms directly Open online stores; the third is the vertical e-commerce model, that is, brand manufacturers directly open online stores.


From the perspective of the development of e-commerce in the domestic wire and cable industry, most wire and cable companies have chosen the "online shop model" that uses the e-commerce platform provided by the Internet to open stores directly when innovating e-commerce models. The participation of many wire and cable companies indicates a positive change in the cable industry's attitude towards online marketing. The "online shop model" that combines the wire and cable industry with e-commerce has gradually become the mainstream development trend of the cable industry and has a preference for prospects.


Practice has proved that if traditional industries can make full use of the "Internet +" platform, some excess capacity can be effectively resolved. "Internet +" can not only expand product sales, enter the market at a lower cost, improve overall operating efficiency, and promote industry transformation and upgrading; it can also shorten the distance between manufacturers and consumers, and also shorten the upstream and downstream of the industry. The distance between enterprises maximizes market potential.


However, good things always have the opposite side. Wires and cables have not been smooth sailing in the development of e-commerce models. The competition under the traditional model has also been transferred to the e-commerce model. Then, the development of e-commerce in the wire and cable industry is currently encountered What kind of problem?


At present, there are more than 8,000 wire and cable companies in China, and there may be tens of thousands of small workshops without business licenses. Vicious competition within the industry has appeared in China’s wire and cable industry, which is constantly being purchased by upstream raw material manufacturers and downstream. New dilemmas such as the squeeze of manufacturers and the increase in quality demand at home and abroad. Many low-quality brand cables have flowed into the market, causing market chaos and malicious bargaining. This has caused more small and medium-sized enterprises and even large enterprises to reduce product prices. Market competition has led to a decline in the quality of wires and cables. Some companies are unable to obtain legitimate profits by improving quality, and are unwilling to invest more capital and manpower in quality management. This has caused serious homogeneity of goods in many markets, leading to The cable industry has stagnated in the development of e-commerce.