Wire and cable is a typical heavy-duty, light-weight industry. Most of the companies' products tend to be homogenous, the competition is fierce, and the profit rate is relatively low. The price of raw materials accounts for 70% to 80% of the total cost. The quality of raw materials affects the quality of wire and cable products to a great extent.
At present, there are four reasons for the product qualification rate.
First, the market for cable materials is relatively large. At the same time, the production of such products is relatively simple. The starting point for investment is relatively low. Enterprises face severe market conditions and use price war as a means to participate in competition. This leads to the production of inferior products that have been overbuilt and made to the market.
Second, companies that are not particularly technologically capable to provide ultra-low-cost products are nothing more than making a fuss about raw materials;
Third, wire and cable users are pursuing the maximization of benefits, and cable products do not reflect obvious quality problems in the short-term use. Helpless low prices force companies to take unusual measures to cater to users;
Fourth, the quality of wire and cable products should start from the source and regulate the wire and cable raw material industry. Put quality and brand in the first place, face the objective cost and profit of the company’s product manufacturing, face up to the negative consequences of the lowest price bid, and gradually optimize the market competition environment; improve the international standards, national standards, and industry standards. The recognition of test requirements; the establishment of corporate standards higher than the national standards, that is, in addition to the basic requirements for the extension of national standards, but also need to show the company itself in terms of personalization, enhance the competitiveness of enterprises to participate in the market; establish enterprise quality and integrity, Improve the level of self-discipline in the industry, strengthen corporate quality supervision, and promote the healthy development of wire and cable raw material industries.
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