- At that time, the economic development situation was full of twists and turns. Developed countries focused their policies on the high-end market, and high-tech and high-value-added products were born, which gave these developed countries a large share of the market. In the past, the AC stabilizer market in China had always been in the mid-to-low end range. With the development of the times and social changes, industrial production and manufacturing had put forward higher standards for AC transformers. Therefore, the export volume of mid-to-low-end AC stabilizer products made in China decreased sharply, making the company’s development extremely difficult.
- Overall, in 2015, the AC stabilizer market in China still showed a stable and upward development trend. The data showed that the total industrial output value for the whole year was 17.75 trillion yuan, an increase of 30.5% compared with the previous year; net profit was 1.6 trillion yuan, an increase of 26.25% compared with the previous year; and the total import and export volume was 685.2 billion US dollars, an increase of 23.56% compared with the previous year. However, these data still showed a trend of slowing down compared with the rapid growth in previous years. How to prevent the further expansion of the decline trend is worth considering by manufacturing producers.
- It also indicates that the growth rate of China’s AC stabilizer export volume has slowed down. This shows the shortage of supply in the high-end AC stabilizer market, which cannot meet the society’s demand for high-quality and high-performance products. The trade deficit with Germany and Japan was as high as 61.5 billion US dollars and 51.2 billion US dollars respectively, which also shows that there is still a large gap between China’s AC stabilizer and developed countries.
- Developed countries’ AC stabilizers started early and developed rapidly, with a large talent reserve and strong innovation ability. Therefore, they have long been in a monopolistic position in the market. Their global promotion network has also taken shape. The outstanding promotional effect combined with competitive products has kept foreign-made AC stabilizers always in an uncontested leading position. In contrast, the domestic AC stabilizer market has weak independent innovation ability, widespread talent shortages, low product value-added, and an incomplete promotion network, making China’s AC stabilizers long stay in the mid-to-low end position. Weak profit capacity and small profit space have made many small and medium-sized companies find it difficult to move forward.
- The power equipment industry needs to break this predicament. The key lies in developing high-end products and focusing on the key research and development of high-tech content products. Only in this way can it have a chance to get a share in the highly competitive market. Regarding this, Wang Ruixiang, the president of the China Machinery Industry Federation, stated that China’s AC stabilizer industry must accelerate transformation and upgrading, and promote the development of each component manufacturer through the development of the entire machine. Relying on technological progress and industrial adjustment to improve product quality, technological level, and economic added value to promote the healthy and sustainable development of the industry. In the future development, the company should also regard energy conservation and emission reduction as a key point. It should further focus on improving energy efficiency and reducing capital consumption as its development direction, and expand the market space to gain market share.
