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The first round was the price war on exporting machine tools from the mid-1980s to the early 1990s. After the State Council formulated relevant policies to encourage the expansion of exports of mechanical and electrical products in 1985, China's exports of machine tool products showed a relatively high growth trend. A group of export-oriented enterprises such as Jinan No. 1 Machine Tool Plant, Shenyang First Machine Tool Plant and Yunnan Machine Tool Plant represented a large number of small and medium-sized enterprises to expand exports. At this time, the export value of China's machine tools increased from 68 million US dollars in 1985 to 200 million US dollars in 1990. The vast majority of exported products are ordinary machine tools. But what comes with it is the “cracking†of the price of exporting machine tools. A considerable number of small and medium-sized enterprises in order to expand the export value of machine tools, not only sacrifice the profits of enterprises to express their "export performance." Some companies' product quality and level are quite different from those of domestic similar brand-name products, but they are only sold at the price of 50%-60% of similar brand-name products to traditional Hong Kong and Southeast Asian markets, and then to new development. North American market. The more and more chaotic price wars have completely disrupted the price balance of China's machine tools in the international market. Not only domestic export agents have bought prices for each other, but even affected the interests of agents in foreign markets. Many foreign agents spend The market that has been developing for many years has been smashed by the low price of domestic low-end. In the late 1980s, even Hong Kong Datong Company, which has been the export agent of China's machine tools since the founding of the People's Republic of China, was unable to withstand the impact of domestic prices and had to give up. Export machine tool agents who have been engaged in decades have turned to develop their own manufacturing industries. Due to the disorderly disorder of export prices, "fertilizer water flows into the field of foreigners." In addition, the export value of ordinary machine tools is very low. By the early 1990s, quite a few companies had no profit to export machine tools. According to the survey of more than 100 export bases and expanding export enterprises (expanded enterprises) at that time, more than 80% of enterprises exporting machine tools are losing money, and they need to rely on domestic machine tools to make up for them. During this period, there was also an export price war for abrasives and gauges, and the price was sold more and more, and the profits were getting less and less.
The second round was the price war on domestic machine tools in the mid-1990s. After the low tide of the early 1990s, with the new round of domestic economic construction in 1993-1994, China's machine tool production increased from 190,000 units in 1993 to 260,000 units in 1994. Blind optimism and erroneous market information orientation have led many companies to abandon product structure adjustments and strive to increase ordinary machine tool products by expanding production capacity. However, after a long period of time, after entering the country, with the “cooling down†and “soft landing†of domestic economic construction, the investment in fixed assets decreased, and the machine tool market began to shrink. By the end of 1996, the national machine tool inventory was as high as six months. However, quite a few companies are still waiting, relying on, and watching. At this time, the speed and intensity of product structure adjustment are small.
A certain export enterprise in China has a low price in the past, and has adopted a small profits but quick turnover method to maintain a good export performance. In the case of declining exports in the past few years, some export machine tools have been converted into domestic sales, and each machine tool has given thousands of dollars to agents and dealers, which has triggered a new round of machine price wars. Several other large companies with certain strength and certain batches have begun to cut prices in order not to lose their market share. After that, the price of Chinese machine tools was like the dominoes that were pushed down, all the way down, and some electronics companies had to fight at a lower price. In this price war, both the initiator and the passive have suffered heavy losses. At the same time, China's machine tool manufacturing industry has entered the dilemma of loss in the whole industry. This is due to the price war caused by blindly expanding production capacity and oversupply.
The third round was the price war between ordinary machine tools and CNC machine tools at the end of the 20th century. In 1995-1999, China's machine tool industry suffered losses in the whole industry for five consecutive years, and production and sales declined year by year. During this period, more than 50% of enterprises lost money, and 20%-30% of enterprises went bankrupt or restructured. Faced with this situation, many companies have painstakingly begun to make great efforts to adjust the product structure. On the one hand, it is to compress ordinary machine tool products year by year, on the other hand, it has begun to expand the production of CNC machine tools with higher added prices. However, due to years of losses, enterprises are unable to provide more funds to introduce advanced foreign technology, the loss of scientific and technical personnel and skilled workers is serious, and the ability of independent innovation and development is obviously not strong. Therefore, the level of CNC machine tools in China is not narrower than that of foreign countries, and it has widened.
After several years of "rewarding and tempering", the company has made great efforts and the product structure adjustment has achieved initial results. The output of CNC machine tools has increased year by year. With the help of the country's active fiscal policy of stimulating domestic demand and increasing investment in the second half of 1999, the investment in technological transformation has increased substantially, and the production and sales of machine tools have stopped slipping, and they have gradually recovered. The domestic CNC machine tools have grown rapidly. In 2000, the output of CNC machine tools reached more than 14,000 units, nearly double the number in 1998. With the improvement of the market, the new round of machine price wars is again. In order to obtain the first domestic sales volume of a certain machine tool, a domestic enterprise has set off a “price reduction promotion†campaign while rapidly increasing production capacity, trying to rapidly expand market share from the method of small profits but quick turnover. For a time, the slogan of “100,000 machine tools delivered to the home†was everywhere, and other companies began to cut prices in order to maintain their market share. Therefore, there has been a strange phenomenon that the market is selling better and the price is falling. This phenomenon is not consistent with the price law of the market economy. It is particularly noteworthy that this price war has become more and more fierce not only in ordinary machine tools, but also in economical CNC machine tools and ordinary CNC machine tools. The result is that “increasing production does not increase efficiencyâ€.
Taking the most intense lathes (including CNC lathes) in the price war, for example, in the case of several large lathe production plants in China from January to September 2001, the sales increased sharply (30%-50%), but the profits were There is a negative growth. This fully proves how serious the impact of price wars on enterprises is. This should cause us to seriously reflect. Some people say that price war is a manifestation of the market economy and should be freely developed with it. However, at present, China's market economy is still not perfect, yet mature, and blind and disorderly market competition will cause even greater disasters for China's machine tool manufacturing industry. Therefore, China's machine tool manufacturing industry should look at its own development direction from a rational perspective. Low-price marketing is just a marketing tool in the case of market saturation and inventory backlog, not the only means. More enterprises should go beyond the misunderstanding of prices and put their own business development foothold on product structure adjustment and market structure adjustment. It takes a lot of effort to practice on the tone.
China has joined the WTO, and the internationalization of the Chinese market will accelerate. It is far from enough to compete with foreign products only because we have the advantage of price. Our products are still far from the advanced level in terms of quality, function and level. We also need to make more in the service field. Great effort. If we are still busy playing in our own home, foreign machine tool products will enter the domestic market from low prices with their technical advantages and economies of scale. By then, we will be afraid that we will lose even the opportunity to face the battle.
Therefore, in the face of severe conditions, China's machine tool manufacturing industry should seize the opportunity, rationally treat, strengthen self-discipline, and jointly meet the challenges after joining the WTO.
Three rounds of price wars impacted the machine tool industry
Since the reform and opening up, China's machine tool products have been experiencing price competition as products that canceled the national directive plan and went to market earlier. In the 15 years or so since the mid-1980s, it has gone through three stages.