A Detailed View of the "Revitalization" of Market Economy in Chang'an Mold Industry
Chen Guihong, manager of Chang'an Branch of Dongguan Wenxiang Precision CNC Tool Co., Ltd., told the author that the sales of the company's molds had improved this year, but had slowly declined since October. According to her analysis, as the company operates in a manufacturer's direct sales model, the manufacturer has no work to do and the decrease in order volume directly affects the company's sales situation. In Chen Guihong's eyes, the mold industry in Chang'an is already in a very saturated state, with chaotic market prices, low transparency, and difficult business operations. Many businesses have engaged in price wars in order to seize the market, often selling a product for 10 yuan while I sell it for 8 yuan, resulting in disorderly and chaotic market prices.
In the face of market competition such as price wars, a major problem faced by the company is customer churn. Chen Guihong stated that she will continue to strengthen the quality and service of products. She believes that although competition in the mold market intensifies, as long as the quality and service of products are guaranteed, there will still be a market. Zhou Yongzhi, the relevant person in charge of Xuchen Mold Parts (Dongguan) Co., Ltd., believes that with the economic recovery this year, there are relatively more orders than last year. The overall situation is relatively prosperous in the first half of the year, and it will start to cool down in the second half. Mr. Zhou stated that there has not been much change in Chang'an mold and its development is relatively stable. In early March of this year, the well-known brand WIDIA, represented by Hannita Trading Company, entered Chang'an Jinming International Machinery Mold City. The biggest challenge lies in how to establish the brand of WIDIA. Due to the fact that the product is imported, it is difficult for customers to accept the price. Therefore, in the future, efforts will be made to improve product performance and cost-effectiveness. Lu Zhun, the sales engineer of Hannida Trading Co., Ltd., said that the company is in good condition and the employees are highly motivated. As the general agent of WIDIA in South China, Mr. Lu is full of confidence in the future development of the company. Mr. Lu believes that the mold industry reached a booming state in May this year, and most of the companies he knows of reached their peak sales performance in May. But it gradually declined in the second half of the year and returned to a relatively normal state. Mr. Lu believes that there are probably two reasons for the popularity. Firstly, the economic recovery has led to an increase in demand for molds; The second reason is that in 2009, some factories were unable to complete some orders due to insurance reasons. When they discovered that the economy had rebounded, they took out these orders, which was the reason for the sudden market boom and the subsequent return to normal state. Chang'an is the capital of molds, and the development of the mold industry has a deep industrial foundation, and the overall situation is still optimistic. Mr. Lu is full of confidence in Chang'an's mold industry, believing that the demand for molds has always existed and will develop with the development of national industry. In this regard, Xiao Chengyu, Marketing Director of Dongguan Lianguan Group, told the author that in recent years, Chang'an Town has timely grasped the trend of Guangdong's industrial restructuring, analyzed the prospects of South China's future focus on the development of automobile, motor, electrical appliances, instruments, electronics and other industries, and predicted that these industries will put forward higher and higher requirements for molds. The demand for precision, large, complex, long-life molds will be higher than the total development rate. Therefore, Chang'an Town has proposed a strategic approach to develop towards mid to high-end mold production.
In the face of market competition such as price wars, a major problem faced by the company is customer churn. Chen Guihong stated that she will continue to strengthen the quality and service of products. She believes that although competition in the mold market intensifies, as long as the quality and service of products are guaranteed, there will still be a market. Zhou Yongzhi, the relevant person in charge of Xuchen Mold Parts (Dongguan) Co., Ltd., believes that with the economic recovery this year, there are relatively more orders than last year. The overall situation is relatively prosperous in the first half of the year, and it will start to cool down in the second half. Mr. Zhou stated that there has not been much change in Chang'an mold and its development is relatively stable. In early March of this year, the well-known brand WIDIA, represented by Hannita Trading Company, entered Chang'an Jinming International Machinery Mold City. The biggest challenge lies in how to establish the brand of WIDIA. Due to the fact that the product is imported, it is difficult for customers to accept the price. Therefore, in the future, efforts will be made to improve product performance and cost-effectiveness. Lu Zhun, the sales engineer of Hannida Trading Co., Ltd., said that the company is in good condition and the employees are highly motivated. As the general agent of WIDIA in South China, Mr. Lu is full of confidence in the future development of the company. Mr. Lu believes that the mold industry reached a booming state in May this year, and most of the companies he knows of reached their peak sales performance in May. But it gradually declined in the second half of the year and returned to a relatively normal state. Mr. Lu believes that there are probably two reasons for the popularity. Firstly, the economic recovery has led to an increase in demand for molds; The second reason is that in 2009, some factories were unable to complete some orders due to insurance reasons. When they discovered that the economy had rebounded, they took out these orders, which was the reason for the sudden market boom and the subsequent return to normal state. Chang'an is the capital of molds, and the development of the mold industry has a deep industrial foundation, and the overall situation is still optimistic. Mr. Lu is full of confidence in Chang'an's mold industry, believing that the demand for molds has always existed and will develop with the development of national industry. In this regard, Xiao Chengyu, Marketing Director of Dongguan Lianguan Group, told the author that in recent years, Chang'an Town has timely grasped the trend of Guangdong's industrial restructuring, analyzed the prospects of South China's future focus on the development of automobile, motor, electrical appliances, instruments, electronics and other industries, and predicted that these industries will put forward higher and higher requirements for molds. The demand for precision, large, complex, long-life molds will be higher than the total development rate. Therefore, Chang'an Town has proposed a strategic approach to develop towards mid to high-end mold production.