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Rotary furnace in the low - end product market competition

Jun 17, 2019

Rotary furnace in our country food machinery manufacturing industry still is given priority to with cheap products, it mainly rely on low price advantage to participate in the competition and occupy the market, between various enterprises generally use way of price competition and enhance the quality to win the market space, the enterprise is lack of enough capacity for independent innovation form around market dominant power, even if the strong industry is on the individual species have certain dominance, and most of the products is still in the dispersed state of competition.

There are three main reasons for enterprises to generally adopt price competition: first, the products in the market of our country are a few, medium and low grade products are the majority, so the market structure presents the strong competitiveness of medium and low grade products.

So the low - end product competition can only take the price competition.

Second, along with the formation of the diversification and market-based investment system, more and more foreign capital into the food machinery manufacturing industry in our country, this led to our many low-end enterprises cannot compete with foreign enterprises, formed the so-called "low level repetitive severe", so as to lead to price competition, and product technical competition.

Third, most enterprises in China do not have strong technological innovation ability at present, and they mainly rely on imitating foreign technology or others' technology at home to obtain short-term benefits.