Analysis of the Future Development Situation of Valve Industry

As a newly-established Chinese valve market, China's valve demand potential and explosive power will be staggering. At present, China's valve market total annual demand is no less than 10 billion yuan. According to the scientific concept of development, in order to ensure the coordinated development of the economy in the future and to improve people’s lives, China will inevitably put infrastructure construction such as water, electricity, gas, and heat in the top priority. This is precisely where the valve is used. However, at the same time, because of the incorporation of mind-set companies, the industry as a whole should examine the direction of development. It is necessary to understand the situation and adjust the strategy. The situation of China's valve manufacturing industry mainly includes the following five aspects:

Corporate polarization will further intensify

The next few years will be the high-speed oscillation period of the valve industry. The direct result of this high-speed shock is the expansion of the polarization trend in the current cabinet brand camp. It is expected that valve companies that can really survive in the market in the next few years will definitely not have so much. However, this high-speed oscillation in the valve industry will bring huge opportunities. The result of the shock will make the market operation more rational.

Valve industry will continue structural adjustment momentum

With the acceleration of China's integration into the global economic environment and the rapid rise of economic strength, China has become the most dynamic economic region in the world. China's economic facilities are relatively complete, its industrial development is relatively mature, and its labor cost is relatively low. It has the comparative advantage of becoming a global valve manufacturing center, and its export-oriented development characteristics are obvious.

Capital operations in the industry will tend to be active

In an environment of global competition, industrial capital is another subject of industry operations in order to obtain a favorable competitive position and improve competitiveness. Supor and Vantage have been listed, and Hongbao is also actively working for the listing. Wanhe's capital market operation will not stop due to the failure of restructuring with Yuemei. From a capital perspective, the current major feature is the expansion of capital. From the point of view of competitive behavior, cooperation in resource sharing among enterprises is increasing.

Increasing competition between channels

Due to oversupply of domestic valve cabinet products and increasing pressure on quality, sales channels have become one of the key competition factors, and the competition for channels among all parties has become increasingly fierce. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales expenses, and make sales channels more professional. The company's sales model has been able to adapt to multiple markets at the same time. On the other hand, the development trend of the sales industry has led to the continuous rise of the status of large-scale home appliance chain stores, increased control over the industry, and has led to price competition that was previously dominated by manufacturers.

At the same time, the requirements of international market for China's valve products will gradually develop and change. There will be higher requirements for the quality, packaging, and delivery period of Chinese products, and even gradually extend to the production process and product development, product and environmental protection , energy resources, and humanities combined.

Market competition turns into quality and technology competition

With the deepening of competition, the profit space of all stages of the valve industry chain is being compressed, and the space for price reduction is decreasing. More and more companies are realizing that it is impossible to establish core competitiveness based on price competition alone, and not the direction of long-term development, in an effort to explore new development paths. Domestic valve companies, in order to increase their own strength and expand international markets faster, will accelerate the integration with foreign companies through various means to improve product quality and competitiveness.