Solar water heater industry: towards maturity
Divided according to the four stages of industrial development cycle, current solar water heater industry, is moving into maturity. During this period, the market slowdown, margins, price wars are usually the norm, at the command of the law of survival of the fittest, competition gradually clear, size enterprises began to emerge and dominate the industry. For labor-intensive enterprises, solar water heater, and seeking advantages of scale, the implementation of the overall cost leadership strategy, become the most realistic and effective strategic choice under the current industry environment.
15 years ago no different traditional household appliances, solar water heater industry is a labor-intensive industry. Barriers to entry are low, not high-tech, many small and medium enterprises, investment diversification, market growth faster, higher product margins. Especially after 2003, the solar water heater industry maintained a growth rate of 30% per year, driven by the 2009 policy of home appliances, and even more than 40%. But from the beginning of 2010, the growth rate plummeted to around 15%.
It now appears that the growth rate plunged in 2010, is the macroeconomic environment, natural disasters, and other external factors to the countryside policy overdraft results, but in essence, it is the law of the development cycle of the industry under the laws of the market leading dictates. Because in a perfectly competitive market, it is impossible to have a sustained high growth industry, but also will not tolerate a hovering in the low-tech, low-level competition in the industry to have enough cake to make as many as 6000 companies eating . Thus, in 2010 the first year of the momentum to shuffle. After growth plunged, with the economic policy environment more severe, in 2011, the solar water heater industry growth will continue to decline, or even do not rule out the possibility of negative growth.
According to statements industrial cycle theory, maturing industry market showed the following characteristics: market growth rate is not high, the product is technically mature and no big difference between a buyer's market is extremely bright, industry profitability decline, new products and product the new use is still in development, the industry high barriers to entry.
Contrast weigh the current solar water heater industry, the feature can be said to be seamless.
But it should be noted that, from the perspective of industrial development point of view, the solar water heater industry by growing into maturity stage, due to the impact of the financial crisis, the logistics and transportation radius limit products industry unique bull management situation might cause cooked phenomenon.
After Specifically, when the solar water heater into the rapid growth to maturity, due to lower market growth and reduce profit margins will cause massive reshuffle phenomenon, eliminating the inferior "left" excellent, re-entering the industry mature period. But for the solar water heater industry, due to a sudden financial crisis struck, the accumulation and brewing industry is not enough, it suddenly hit shuffle, while the lack of logistics radius restrictions and regulation, lack of industry standards, individual districts local protectionism, but also makes a considerable part of the regional brand-name or brand to be retained. Cooked reshuffle will inevitably drag the hind legs mature market competition - leading the future, he is busy with the conventional mainstream enterprise competitive advantage means building, one side had distracted to deal with free-ride, imitation brand-name or distracted to clear the local protectionism.
Size, or scale
Changes in cooked, and can not influence the direction of the next competition - the scale of competition. As previously mentioned, the solar water heater for such a labor-intensive industry, the implementation of the overall cost leadership strategy to combat the risk of scale and enhance the industry into the threshold only to build quality affordable competitive advantage has become a prime future market competition selection.
Household appliances such as air conditioners mature industry, has given us such a development showing a trajectory. Recorded at the time the situation in the "air-conditioning Business" in 2003 launched the "Yearbook of Chinese air conditioner market," in: had to rely on price leverage to build 200 million units in the club, Gree, Midea, Haier success among. Today, eight years later, these three brands are still firmly occupy the position of front-line camp, the difference is that the threshold line camp has been increased to 4 million units.
This is not a rote rule. Need to argue that, for such a labor-intensive industry, too much emphasis on brand marketing, emphasis on high value-added, emphasizing the difference one way or another, are biased. From the size of the support, large changes in the macroeconomic and microeconomic risks of raw material prices, improve profits and dragged lower labor costs, and all will the so-called brand, so-called value-added offset depleted. Because it is clear that as the solar water heater industry necessities of life are less likely to be born as a price like Omega watch industry up to tens of thousands, hundreds of thousands.
It can be said that the overall cost leadership strategy, the scale of competition, will be the next phase of the solar water heater industry, competition in the industry and supported by the tone of the differentiation strategy or specific strategy and conduct. This is the world-renowned strategic management scholars Michael Porter on competitive strategy part of the thesis.
Indeed, if the solar thermal sights such a large industrial point of view, high-temperature solar energy market, in contrast, the thermal power generation business of being the essay, the entire industry will usher in a new round of growth. However, this should be higher than the solar water heater industry, another proposition.