Commentary: Who will shoulder the heavy responsibility of the "four formations" in the cable industry?

The “12th Five-Year Development Guidance Opinions for the Wire and Cable Industry” made by the China Wire and Cable Branch of the China Electrical Appliance Industry Association proposed three goals for the development of the industry during the “12th Five-Year Plan” period. Among them, the second goal is to "bigger and stronger companies, optimize the structure of the industrial organization," and put forward the "four formations" historical responsibility, it is very encouraging.

The "Guidance Opinions" pointed out that through the industrial reorganization activities such as acquisitions, mergers, and alliances, they should strive for the end of the 'Twelfth Five-year Plan'. In the industry: 1 Form 3 to 5 sales of tens of billions of yuan and have certain international competitiveness. Large-scale enterprise groups; 2 Form 6 to 12 specialized and specialized enterprises with sales revenue of 10 billion yuan and strong international competitiveness in professional products; 3 Form a batch of products with distinctive features, strong professional manufacturing capabilities, and supporting facilities Complete and differentiated regional cable industry clusters; 4 Form a group of SMEs with professional production characteristics and regional competitive advantages.

It is not easy to successfully complete such a formidable 'four formations' task. Under the circumstances that the market economy system is still not perfect and the economic situation is still unstable, it is necessary for industry organizations and industry-wide large, medium, and small-scale backbone enterprises to make tremendous efforts to accomplish these tasks.

First, industry organizations must effectively play a guiding role

Now that it is not the planned economic era, after the industry organization has formulated the “planning” and approved by the national competent ministries and commissions, the leaders of the ministries and commissions are required to make individual reports, and they can be gradually and smoothly implemented. Nowadays, the industry organizations are almost out of touch with the government departments, each with its own number and each blowing its own tone. What the government wants is GDP, and the industry organization wants the development of the industry. The two seem to be divorced, which causes the enterprises to be confused. The result is: companies need loans, what kind of honors or awards to apply for, what new projects, etc., must consult the government; what new projects the company needs to listen to expert information, inquire about other business news, or product quality out In order to solve this problem, you must find an industry organization to help. This is why so many towers have been built, so many famous brands have been awarded, and so many glorious honor certificates have been issued, and the reasons why the industry’s competent organizations and departments are not yet clear. Industry organizations are basically unable to speak or have the right to question major events such as 'acquisitions, mergers, and alliances'. Whether the good intentions of the "Guiding Opinion" can be realized depends, to a certain extent, on how industry organizations guide enterprises and whether companies obey the guidance of industry organizations.

How to guide the cable industry to deal with external tossing and internal self-tossing should be an important task for the industry organization.

Second, large enterprise groups must play a leading role in the industry.

The "Guidance Opinions" said that it is necessary to form a large-scale enterprise group with 3-5 billion sales and certain international competitiveness. Standing on the perspective of the overall development of China's wire and cable industry, these companies are certainly the backbone of China's wire and cable industry. They are the 'giants' that show the 'muscle' of the Chinese wire and cable industry to the world. They are the world's leaders in the wire and cable industry. The Star of Hope is the cradle of creating world-renowned branded companies. Today, there are already a large number of ultra-large enterprises with sales exceeding RMB 10 billion, such as Far East and Baosheng. They are raising the banner of the industry and leading the development of the entire industry. The industry is eagerly awaiting them to come up with more brilliant transcripts as soon as possible so as to realize the dream of the development of the national wire and cable industry of my generation.

Third, specialized and featured enterprises must adhere to the road of characteristics

The "Guidance Opinions" said that we must form 6 to 12 specialized and featured enterprises with sales revenues of 100 billion yuan and strong international competitiveness in the professional product sector. This is a very vague concept. For the time being, it will be difficult to define which of the existing companies belong to such enterprises. There are one or two specialty products in a company, but it is not necessarily a specialty company. Qualified companies can work in this direction, but they can be very difficult. Business owners understand the philosophies of 'big big troubles' and 'trees and big strokes'. Even if they really have one or two specialty products, they are already living a well-to-do life. Whether they want to become bigger and stronger and become billion-dollar enterprises is still a question mark. However, it is recommended that all companies with conditions should not miss out on opportunities and seek self-development.

Fourth, the regional cable industry group must become the main force for the development of the industry

The "Guidance Opinions" said that it is necessary to form a group of regional cable industry clusters with distinctive products, strong professional manufacturing capabilities, complete supporting facilities, and differentiated development. It is said that as early as 2007, the China Cable Museum, the China Electric Industry Association Wire and Cable Branch and the Shanghai Cable Research Institute conducted long-term field trips and identified four major bases for China’s cable production: Guanlin Town, Yixing City, Jiangsu Province (general power cable) ), Gaogou Town, Wuwei County, Anhui Province (special cable), Ningjin County, Hebei Province (ordinary power cable), and Qidu Town, Wujiang City, Jiangsu Province (cable cable). There are hundreds of wire and cable companies there. From the Internet, we also see that some regions are also building new wire and cable industrial bases. From product differentiation, only the products of Gaogou Town and Wujiang Town are different. The other two bases still participate in the market competition by taking advantage of ordinary power cables. Whether the regional cable industry cluster can be formed and benign development, in addition to the local government's industrial policies and support, local industry organizations also play a crucial role. The cable industry base mentioned above has a strong local industry organization and has received effective support from the local government. From the point of view of the development trend of each region, the possibility of forming a new cable industry cluster is not ruled out. Dongguan, Guangdong Province is building a manufacturing and export base for the electronic cable industry. However, in any case, we must keep in mind the painful lessons of the destructiveness of the whole army in the cable industry in Henan Gongyi in the 1990s. We must 'operate within the group and abide by the law and live in harmony outside the group' to eliminate fake and shoddy products and build a local cable industry base. Responding to the brand, with a good brand and quality image, the user can rest assured that it should be one of the important issues in the current corporate transformation.

Fifth, SMEs should focus on strengthening regional competitiveness

The "Guidance Opinions" said that "a group of SMEs with professional production characteristics and regional competitive advantages" should be formed. Indeed, some small and medium-sized enterprises are far and away. Their brand image in the region is still not loud, even if they are not known, they hurried to the product into the foreign market. Once the quality of the products of these enterprises has been exposed, they are often caught by the foreign industrial and commercial and quality supervision departments. Not only the corporate image is damaged, but they are also fined. SMEs are led by the most common medium- and low-voltage wire and cable products. Some of these products are of low quality and poor quality. In addition to endless relations between them, they are also scared all day long. Small and medium wire and cable enterprises account for 95% of the total number of cable companies in China. How to manage this part of the enterprise should be the top priority for the wire and cable industry organizations in the country and all over the country. It should not only pay attention to super-large enterprises, 52 towers and ultra-high voltage cables all day long, because it is only 5% of the enterprises after all. . The wire and cable markets around the country were found to be unqualified and exposed to the media, but they are basically ordinary low-voltage wire and cable products. The numerous quality inspection centers and quality inspection networks scattered all over the country are unable to help these counterfeit and inferior products. With the increasing standardization of the market economy, illegal small and medium-sized enterprises that are not doing a good job are bound to be eliminated. This is a general trend, and no one can save anyone.

In short, the “four formations” proposed by the “Guidance Opinion” indeed captures the key to the survival and development of the industry. It not only focuses on large-scale and super-large-scale enterprises, but also pays attention to small and medium-sized enterprises, and in particular proposes the development of regional industrial clusters and distinctive enterprises. The concept of specialty products is even more refreshing. The next step is how to implement the issues with whom. A dozen slogans is not as good as an action. I would suggest that industry organizations organize four special conferences with different and different contents according to the requirements of the 'four formations' and fully discuss each 'formative' implementation plan, not just at the national wire and cable industry conference. Talk broadly and emptyly.