After long-term development, the mold industry is currently on the rise. At such a stage, what kind of development methods should mold companies adopt has become a problem that major mold companies are actively thinking about. Protracted price wars are gradually unacceptable by enterprises, and technological competition has gradually surfaced.
The domestic mold industry is at the low end of the world mold industry. The emergence of such a situation is related to the low technology level of the entire industry and the continued price war. If the mold industry wants to develop, it must continue to increase research and development funds, increase scientific and technological content, and produce products with core competitiveness. Only by increasing product research and development can we truly change the current competitive model.
Why does the domestic mold industry have been fighting price wars? There are more domestic companies engaged in mold production, but the scale is relatively small, and they are basically small workshops with low technological content. The products produced by small mold companies are basically imitated, leading to more and more low-end homogenized molds. Mold companies are facing the problems of overcapacity and overstocking. In order to continuously increase sales, mold companies will lower the price of their products. Several mold companies have cut prices one after another, which eventually caused the entire industry to fall into trouble, and the company’s profits became less and less. When profits continue to shrink, companies have no excess funds for product research and development.
Long-term price wars within the industry will affect the entire industry. Chinese mold companies should upgrade the technological content of their products and shift from the current price war to technological competition. From simply grabbing market share and not making a profit at present, it has become sharing the market and making profits together. It is believed that after Chinese enterprises change their competitive methods, their production level can be greatly improved, effectively get rid of vicious competition, and bring the mold industry to a higher level.
Link to this article：Technology competition in the mold industry gradually surfaced
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