Optimistic outlook for the domestic valve brewing brewing brewing integration

According to a well-known supplier in the industry, the annual demand of China's valve market is currently less than 10 billion yuan. This huge market is a huge business opportunity for any internationally renowned valve manufacturer. In the meantime, in order to ensure the coordinated development of economy and improve the people's livelihood in the future, China will inevitably place the greatest emphasis on infrastructure construction, such as water, electricity, gas and heat. This is exactly where the valve comes into play. Therefore, as a new type of manufacturing rather than replacement of the Chinese valve market, the potential and explosive demand will be staggering. Valves optimistic about the application prospects China's South-North Water Diversion and other key projects of the procurement volume is not only huge but also very concentrated. For example, the project of South-to-North Water Diversion only takes the length of 70 km from the suburbs of Beijing to the urban area for the purchase of valves to be as high as tens of millions of yuan. Therefore, the demand for valves throughout the South-to-North Water Diversion Project can be imagined. Secondly, in order to solve the problem of electricity shortage, it is not only a top priority for the Chinese government to launch hydropower projects on a large scale. It will also be a long-term task, not to mention the project of transiting the natural gas from west to east, transforming old industrial bases, building urban pipe networks, Residential projects, sewage treatment, farmland irrigation and many other projects. In the market, "spire" of foreign brand products have begun to get the preference of domestic users to refine the Chinese market demand for the valve, like a pyramid structure. Spire for all imported products to high quality, high price, the amount of small monopoly of high-end users. Central tower is wholly foreign-owned, joint venture site, the corresponding valve is required high-quality, affordable medium and high-end users. As for domestic-funded enterprises are basically hovering at the bottom of the tower to fight the number of fight the price of low-end users compete for the way. With the increasingly rationalization of user purchasing behavior in China, more and more attention has been paid to brand and quality. Sole proprietorship and joint venture products are also increasingly favored. Meanwhile, sole proprietorships and joint ventures continue to erode the market share of imported products by improving quality and reducing costs. In the past two years, China's valve users favor the world famous brands, but also make foreign brands a little more investment impulse. According to the "Control Valve Information" magazine China Control Valve Market Survey, the quality and technological innovation of foreign brands such as FISHER (Emerson), Keystone (Tyco), Neles (Metso), SAMSON and Masoneilan (Dresser) High evaluation, the surveyed users said: The reason for the final factor is the choice of imported products quality, quality is the key to brand decision-making, as long as the price range rather than choose a little more expensive but quality assurance products. Because users generally consider this not only can save the maintenance cost, but also can reduce unnecessary troubles and waste of time. "There must be a big rule after the chaos," disorderly competition in the valve market brewing industry consolidation Valve enterprises in China "small door" and China's valve products "mixed" to large-scale foreign brands into the Chinese market to create a once-in-a-lifetime integration opportunities. Because the threshold for entering the valve industry is too low, access mechanisms are not perfect, more than a decade, in the earth mushroomed to more than 3,000 valve manufacturers. Throughout this more than 3,000 valve manufacturing enterprises, with annual sales income of 5000000 yuan less than 500, annual sales income of more than a hundred million yuan only a dozen companies. In accordance with internationally accepted market standards, a standardized, mature market, 20% of the industry should have 80% market share, the top three have to control the market share of more than 50% strength, and China's valve industry the top 10 The market share of an enterprise only occupies 8% -9% of the domestic market. In other words, such a large Chinese valve market up to now there is no real sense of the brand name. No world-class brand, there is no heavyweight Chinese valve market, it will inevitably lead to China's valve market segmentation and disorderly competition.

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