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Fierce competition in low-voltage contactor market
低压接触器市场的激烈竞争

In the industry of electrical appliance development, low-voltage contactor, as a traditional low-voltage electrical appliance product, has been very mature. Sufficient market demand has spawned a large number of low-voltage contactor manufacturers. Enterprises want to enter the low-voltage contactor market and benefit from it, they need to have a full understanding of the current mainland low-voltage contactor market, including the main aspects.

As a traditional low-voltage electrical product, low-voltage contactor has been very mature. The manufacturing process of low-voltage contactor products itself is not complicated, the technical content is relatively low, and sufficient market demand has given birth to a large number of low-voltage contactor manufacturers; The low-voltage contactors with different load currents also show great differences in price, which covers the range from ten yuan to several thousand yuan. Enterprises want to enter the low-voltage contactor market and benefit from it, they need to have a full understanding of the current mainland low-voltage contactor market, including major application industries, industrial chains of various industries, potential industries and so on.

According to the new investigation report "Chinese mainland Low-voltage Contactor Market Investigation Report in 2008" by JFUnited, it shows that low entry threshold, low brand concentration, strong market demand and good market prospect are positive factors for investing in the low-voltage contactor market; With the increasingly fierce competition in the industry, product homogeneity and narrow profit margin are also important factors that investors have to consider.

In this report, Jiefu jointly studied the main application markets of low-voltage contactors such as power, machinery, petrochemicals, metallurgy and rail transit, and made corresponding analysis of the industrial chains of each application market, and pointed out the current competition situation of the above-mentioned market segments from the aspects of market concentration and price competition pattern. At the same time, the report also makes a targeted analysis of enterprises with different market shares in terms of brand, channel, logistics and key market segments.

According to JFUnited survey report, the market size of low-voltage contactors in Chinese mainland reached 4.76 billion yuan in 2007, and it will maintain a good growth momentum in the next few years. At present, the main applications of low-voltage contactors are concentrated in machinery and electric power, accounting for about 72.5% of the total sales; These two industries have also maintained a rapid growth momentum. Therefore, occupying good resources in the fields of electric power and machinery is a work that major enterprises attach more importance to.

The market concentration of low-voltage contactors is not high, especially in the low-end product market. . Schneider currently occupies a large market share (about 10%) in the mainland low-voltage contactor market, while the market share of other enterprises is below 7%. The top five enterprises only account for 35.1% of the total market capacity, and the remaining 64.9% is shared by many low-voltage contactor manufacturers.

At present, a large part of low-voltage contactors in mainland China are purchased by low-voltage complete equipment manufacturers, and these enterprises are more sensitive to price. Therefore, the price of low-voltage contactors in mainland China is generally low. At present, the market of low-voltage contactors in mainland China is basically occupied by foreign brands, and the products of most enterprises in mainland China are positioned in the low-end market, with fierce competition. However, the intensification of overall market competition cannot conceal the increase in profits brought by the good growth of some market segments. The subdivision and application industries of low-voltage contactors are mainly traditional industries, and the development of these industries is the premise of the development of low-voltage contactor market. The low-voltage contactor market is greatly influenced by the development of demand industry.   

In the report, JFUnited made an in-depth analysis of the overall market of low-voltage contactor products and the supply and demand situation of main sub-application markets. The rapid growth of installed power generation capacity, the substantial increase of mechanical product output, and the growth of investment in petrochemical industry and metallurgy have all affected the future growth rate of low-voltage contactors. In terms of subdividing the application market, electric power, machinery, petrochemical, metallurgy, rail transit and other fields show different purchasing characteristics, which is the key point that low-voltage contactor manufacturers should grasp in order to stand firm in the competition and improve market share, and it is also necessary for new enterprises to master.

At present, the products of low-voltage contactors are very mature. Most of the major enterprises in the low-voltage contactor market were established or entered Chinese mainland in the 1990s, and they occupied most of the market share. These enterprises all have strong strength. However, this does not mean that new entrants will have no chance of survival. Among the surveyed enterprises, there are still enterprises that have entered the market in recent years and achieved good results. These enterprises have just discovered and grasped the potential demand in the low-voltage contactor market and achieved success. At present, the products of low-voltage contactors are not very different, and the products of most manufacturers can be replaced with each other. Therefore, it is an important way for enterprises to expand their market share by grasping the needs of subdivided application industries.

The fierce competition in the low-voltage contactor market can also drive the all-round development of the whole market and make the electrical industry develop faster.