With the further increase in the market concentration of the home appliance industry, Gree, Midea, Haier and other large home appliance manufacturers have gained more and more market shares. The domestic Wire Harness processing industry has also completed the process of concentrating market share to dominant companies in the fierce market competition. I believes that the home wiring harness industry has developed rapidly in recent years, mainly showing the following characteristics:
1. The home wiring harness has developed rapidly with the development of the home appliance industry
Since its inception, the home cable harness manufacturing industry has been developing rapidly with the vigorous development of the home appliance industry. After the 1990s, as the country broke through the fixed-point production model of home appliances, the home appliance industry experienced explosive growth. In recent years, the industry has been gradually developing and maturing along with the development of the household appliance industry, mainly in terms of the continuous improvement of the technical level of the wire harness processing industry and the further increase of the concentration of the wire harness industry. Due to the characteristics of the wiring harness industry, companies in the industry are more affected by downstream customers. Companies that have maintained a good cooperative relationship with downstream home appliance brand customers will gain a further advantage in the development and grow rapidly.
2. The market competition is fierce, and the quality of home cable assembly products is uneven
The entry barrier of the domestic wire harness industry is relatively low, and the market competition is fierce. Some small-scale production enterprises have relatively low production costs due to low technology and quality requirements, and rely on low-price strategies to occupy part of the low-end market; on the other hand, some advanced production enterprises in the industry rely on advanced production technology and stable production. The price advantage brought by quality assurance and scale effect has become the main supplier of a few large-scale home appliance manufacturers. Therefore, the overall product quality level of the household wiring harness industry is uneven and uneven.
3. The number of cable harness processing companies is increasing, and the polarization is obvious
As one of the traditional industries, the domestic wire harness industry has relatively many production companies. However, most of the production enterprises have small production capacity, insufficient product competitiveness, and extremely low market share. A small number of companies have won the favor of downstream large-scale home appliance manufacturers due to their advantages in product quality, cost-effectiveness, and delivery speed. They have maintained long-lasting and stable cooperative relations with downstream customers and have grown rapidly with the development of the downstream home appliance industry. And with the further concentration of the downstream home appliance industry market, the market share of such enterprises in this industry has also further increased. With the further development of the industry, this polarized situation has become increasingly apparent.
4 Increasing technological level
With the continuous implementation of national safety and environmental protection policies, people's awareness of safety and environmental protection has been continuously enhanced, and the safety requirements for home appliances have become increasingly strict. As one of the accessories of household appliances, the technical level requirements of household appliance wiring harnesses are also increasing. Mainly manifested in: 1) The safety performance of the wiring harness products. Household wiring harnesses need to ensure the safety of home appliances when they are in use, which requires wiring harness products to improve indicators of heat resistance, insulation, and corrosion resistance; 2) wiring harness products are non-toxic and environmentally friendly. The product must not release toxic gases during use, which will endanger human health. In this respect, products are required to adopt non-toxic and safe production technology in the use of raw materials and production processes, and the technical requirements for the industry have also been further improved.
Dongguan Fengzhan Electronic Technology Co., Ltd. specializes in manufacturing household wiring harnesses, providing customers with perfect solutions and technical support. Welcome to inquiry.
Contact: Lynn Long
Phone: 0086 13640200141
Add: No. 19, Minye Street, Zhufoling Community, Tangxia Town, Dongguan City, China