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Most of the relay competition in product supply industry

International IC Exhibition in 2007 (hereinafter referred to as IIC), the only two relays exhibitors, and exhibitors complain too much because the relay manufacturers, leading to fierce market competition, and raw materials prices are rising , and the way they price and very difficult to fight for market, such companies face a lot of pressure.

    Most of the traditional relay market has global product supply and demand balance situation, most of the relay product oversupply. Some manufacturers believe that the industry's profit margin has gone down, so out of the field, turning the other direction. It is understood that in the current IIC, only two relays exhibitors, Wanli Industrial Co., Ltd. is one of the Fort. Fort Wanli Industrial Co., Ltd. is a manufacturer of general-purpose relay manufacturers, according to the company manager Wu Zhirong, said: "There are many relay manufacturers, competition is fierce, and raw materials prices are rising, and our way of lower prices and very difficult to to fight for the market, so we face a lot of pressure. "But he also said:" Despite the relay low profit margin, but we still stay in this industry, because market demand for the relay has been stable, almost all electronic products require it, so the market still exists. "
    At present, the relay in the communications, automotive, industrial, appliance and other industries are faced with more and more popular consumer groups, manufacturers introduced better performance of products, competitive pressures forced the market price and cost as business improvement issues.
BCT analysis:
    Relay applications from our point of view, communication and industrial control, home appliances and automobiles are the largest market for the relay. Demand is the largest general-purpose relays, especially the high sensitivity, small, ultra-small pcb relays, low-power relays. From the market situation, the relay is a large, wide range of services, not high tech, low profits, the market potential for a competitive industry. But, the industry believes that the current highly competitive market of China's relay, and raw material prices, increased the burden on enterprises so that enterprises face great pressure. Relay from the market following the development of China in recent years to explore changes in market pressures, which led to today to find out the root cause of this situation:
    In 2000, China relay industry in support of national macroeconomic policies in the world economic situation is getting a good environment, industry-wide face of fierce market competition, and work together, relying on scientific and technological progress, and achieved gratifying results, 2000 industry-wide sales revenue of 3.177 billion yuan, compared with 2.32 billion yuan in 1999 increased by 36.96%, the growth rate in 1999 increased 30.29 points, to complete production of 1.042 billion, compared with 723 million in 1999 grew by 48.3% the growth rate increased 11.99 percent year on year, reaching an unprecedented growth rate.

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