China's Current Mold Industry Dilemma At 2019 Years

- May 12, 2019-

China's current plastic mold industry dilemma at 2019 years

   Because of the explosive profits of the mold industry in the early years, many practitioners in the mold industry have created their own careers after they have accumulated a certain amount of technology, capital, and contacts. They have turned from wage earners to bosses. As a result, large and small processing shops, mold factories, and consumable stores have taken the lead, and the number of mold companies has almost increased at a geometric multiple. From the perspective of personal development, nature is a good thing, but from the perspective of the overall industry, the original company has a higher profit, and now the three companies are robbing. In order to get orders, price wars are naturally inevitable. You 10, I am 8, you 8 I am 5 ok. It is in this kind of shopping, the mold industry has finally turned from a profiteering industry to a profitable or even low-profit industry. In this fierce battle, different companies have embarked on different paths.

   Some companies insist on quality, do not engage in price wars, have the support of fixed customers, and then have sufficient capital turnover, slowly grow up from small to small, and finally become a big company. However, some companies lack these, and they have chosen price wars on the two routes of quality and price. In order to save costs, they have to be compressed on equipment and artificially. As a result, a vicious circle is formed, the quality is getting worse and worse, and the unit price is getting lower and lower. Finally, Finally closed. When a company closes, it often has a chain reaction, which will cause several companies to receive no payment, especially for larger companies, because the company’s business transactions with the company are usually monthly, and the normal procedures are closed. Recover some of the debt, and some simply sell the machine, and the money will be collected. This kind of thing has also seen a lot.

   In the relatively difficult period of these years, a large number of small and small enterprises with weak survivability have either expanded on the right track or closed down. Basically, you can live to the present with your own path. This is the big wave of business and the survival of the fittest.

   Entrepreneurship is a good thing, and the easy entry of the mold industry is also a feature that attracts many people to join. However, entrepreneurship is risky, and the success of a company is often based on the collapse of more companies. It is best to have a certain foundation in funds, contacts, and technology, especially after having a stable customer. If you want to spread the stalls first and then look for customers, it will often be very difficult. If you don't care, the capital chain will be broken.

   These are the subjective factors within the mold industry. The industry itself is expanding too fast. Even if the economy is booming, it will be fiercely competitive. Moreover, unfortunately, when the economy is in recession, the difficulties have arisen.  

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