Hardware & Electromechanical Enterprise: Tried to Trilogy of Internal Strength

Recently, news about the country or will increase the tariff of LCD panels has attracted the attention of many people in the industry. Some companies proposed to increase the panel import tariff from 3% to 8% to 12%. However, there was no further news after this discussion was discussed by the China Electronics Video Industry Association.

Raising tariffs will increase the production costs of the downstream complete machine companies without raising tariffs. It is difficult for panel companies to break through the current loss crisis. It is reported that panel companies and complete machine companies are still in fierce competition on tariff issues.

Although the current tariff problem has not yet reached results, many people in the industry are optimistic about the impact of tax increases on Chinese companies. According to Xiaobian, some research experts in the home appliance industry believe that increasing panel tariffs can increase the market share of local companies in the short term and increase the competitiveness of local brands.

Many companies that produce high-generation panels are happy to raise tariffs. They said that although high-generation panel production lines have already been launched, it will take several years if they want to form a complete production capacity, and increasing tariffs will allow companies to grow. The buffer period prevents the industry from being under pressure from overseas giants at the outset.

Raising tariffs can create a good opportunity for the development of domestic panel companies and other electromechanical companies. However, Xiaobian believes that if domestic industries want to meet the market for a long time, they cannot rely solely on policy support, and the enterprises themselves must train their internal strengths.

First of all, the ability of independent innovation of enterprises is the lasting driving force for the company's long-lasting prosperity. The market share obtained through tariff protection may make the company bigger, but it does not guarantee that the company will become stronger. The lack of core technology is still fatal. Injury, if the company can not improve the ability of independent innovation, then once the policy changes, or overseas companies to adjust the industry, domestic companies are still in danger of being suppressed. Electromechanical enterprises cannot only focus on the immediate interests, but must plan ahead and increase their own research and development efforts.

Secondly, companies should improve their forward-looking nature of the layout industry, not blindly follow the trend to expand production, prevent blind competition to lead to the compression of profit margins, electromechanical companies can also take the product's differentiated competition line according to their own situation, to do a distinctive style of the brand.

In addition, during the period of tariff increase, the electromechanical enterprises must strive to expand market share. On the one hand, they must also pay attention to the introduction of technologies and advanced management methods, and strive to increase the overall strength of enterprises during the buffer period so as to prevent them from being affected by changes in policies.