Himfr.com Reports Explosion-Proof Electrical Industry, Breaking The "bottom" Circle

   When the low-voltage electrical widespreadexplosion-proof electrical industry associations at
price war deep mud of the time, the city hasthe municipal quality supervision bureau and the
explosion-proof electrical industries, such as amember companies with the support of attempts
"dark horse", since last year, the product priceto establish a joint response system, and removal
has not dropped, but steadily. Behind this isof the "bottom" vicious circle. November 6 that
because the Government, associations,year, all member enterprises focused on opening
enterprises build of a joint response system,a "Encounter", was formed a mass margin
constantly trying to start breaking the "bottom"system: each firm will file the categories according
circle. This gives the government and enterprisesto the Association the quality of deposit to pay
have long plagued the "lower price competition"60,000 yuan (A class), 50000 Yuan (B category),
dilemma provides a possible break. "Lower price40,000 yuan (C category), while the
competition" is an infectious disease, almost to theimplementation of peer-bargaining and industrial
Yueqing infected with each of the manufacturingself-disciplined. If the enterprises to violate the
sector. Like C45 switch, multinational companiesrequirements, or for product quality were
offer more than three U.S. dollars, while the priceinvestigated, the margin the quality of
is probably exported to Japan Liushi RMB 8.development funds to the Association, companies
   It is inconceivable that last year in thewill no longer recover. Last year, New Year's Day,
energy, against the background of rising rawthe member companies started selling products
material prices, low voltage electrical appliancesthe industry standard prices.
prices have declined. At present, low-voltage   To support this new system effectively,
electrical industry Liushi only 6% of gross profit,Dajiazhilie Municipal Quality Supervision Bureau to
net profit even fewer. Many companies have amaintain a high pressure situation, especially the
loss, but guards its market share and struggling toincrease of undocumented unlicensed businesses,
support. Last year, the city convened a meetingand individual nests of the investigation and
of relevant departments of electrical industrypunishment, in order to prevent "price
forum to discuss "containment down in price." Atcompetition" and create a rebound a favorable
the meeting, the size of the boss eloquently, "theexternal environment. After a year of renovation
bottom" of the disadvantages After the meeting,and build, explosion-proof electric industry are
Wenzhou Electrical Industry Association issued abasically out of a "bargain" vicious circle. Trade
memorandum of the cost price. However, theassociations of civil society is, essentially, still in the
memorandum Before the ink was dry, the pricestage of self-development and industry
war fought on the open again, so that businessesconsolidation, despite the limited influence, but as a
and the local economy was "very hurt."bridge of communication between the
   Explosion-proof electrical appliances over theGovernment and enterprises, through the
city more than 130 manufacturing enterprisesadoption of the development of quality assurance
with annual output of mining explosion-proofprices, the fight against counterfeiting, the media
electrical appliances, chemical plant explosion-proofand propaganda means of governance to
electrical appliances, mining cables, miner's lamp,safeguard the industry's own interests and to
fan and other products account for 65% of thestop enterprises competing among the chaos
market value of more than 50 billion yuan . Withcaused by lower prices, it should do well.
other industries, this industry is also popular "bid"Explosion-proof electrical industry association
Pain. From the second half of 2004, municipalattempt, is a good start.