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Competition in the explosion-proof motor market in 2017 will be extremely severe
Author: Unknown Date: 2017-3-17 Hits:

Explosion-proof motors have always been the main products of Jiangsu Gaoke Motors. This year's explosion-proof motor manufacturers have expressed great pressure and the market competition will be extremely severe. So why is the situation this year so severe? Jiangsu Gaoke believes that there are mainly the following reasons:

1. A large number of new explosion-proof motor companies have entered the explosion-proof motor market

Due to the good market of explosion-proof motors in recent years, many companies have seen this piece of fat. Therefore, in recent years, the explosion-proof motor market has flooded into many new production enterprises, forcing competition in explosion-proof motors to increase. In order to survive, companies have to reduce prices.

Second, the price transparency of explosion-proof motors is getting higher and higher

With the development of the network, all explosion-proof motor manufacturers are now promoting on the network. Customers only need to search on Baidu to find the phones of all explosion-proof motor manufacturers. After a few calls, prices can be compared. Therefore, the price transparency of explosion-proof motors can be said to be getting higher and higher.

Third, the explosion of raw materials for explosion-proof motors

In the second half of 2016, the raw materials of explosion-proof motors began to skyrocket. In just half a year, the raw materials rose by nearly 30%. When the cost goes up, the company will have to raise the price. Due to the pressure from customers, it can't rise too much. It can only reduce the profit of the product.

Fourth, the adjustment of logistics prices

In the second half of last year, not only the raw materials rose, but also the prices of logistics also rose, which is undoubtedly worse for enterprises.

V. Cancellation of "Energy Saving and Benefiting People Project"

The increase in the price of raw materials and logistics for explosion-proof motors has already made the explosion-proof motor manufacturers miserable. Now, the Reform Commission and the Ministry of Finance have cancelled the policy of “Energy Saving and Benefiting People”. Since March 1, high-efficiency energy-saving explosion-proof motors will no longer enjoy subsidies, and cancelling the subsidies will increase the purchase price of customers.

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