In recent years, with the development of electronic information technology change rapidly, the replacement of electronic products faster and faster. With the "green,environmental protection, energy saving" thinking of the growing win support among the people, and the efforts of governments in the energy-saving emission reductionwork, hybrid vehicles, smart grid technology, new energy power generation ispopularized in developed countries, such as India, Brazil and China high growth in developing countries, which will also greatly promote the market of circuit protection component demand.
1, the favorable factors
(1) the downstream market demand
In recent years, with the development of electronic information technology change rapidly, the replacement of electronic products faster and faster, consumer electronicproducts to flat-panel TV products, notebook computer, digital camera, intelligentmobile phone based production and sales continued to grow, driven circuit protectionindustry growth. In the next few years, the industry will continue to maintain strong growth momentum, which will bring huge market space for circuit protectioncomponents industry. With the "green, environmental protection, energy saving"thinking of the growing win support among the people, and the efforts of governmentsin the energy-saving emission reduction work, hybrid vehicles, smart grid technology,new energy power generation is popularized in developed countries, such as India,Brazil and China high growth in developing countries, which will also greatly promotethe market of circuit protection component demand.
(2) the content of high technology industry
Circuit protection components belongs to the high technology products in the world,for the manufacturing equipment, raw materials, process technology have higher requirements. In order to adapt to the multifunction, miniaturization, portability and other needs of downstream products, manufacturers need to increasing investment in technology, the development of new materials, new technology, production of newproducts. Leading technology vendors by developing new products, can obtain higher profit margin level, ensures the continuous investment in research and developmentand equipment, keeping the advantage position. At the same time, the technical content of ascension also raised the threshold for entering the industry, to some extent reduce the vicious competition within the industry, the healthy development ofthe industry can guarantee.
(3) the production to the Chinese focus
In recent years, notebook computers, digital cameras, refrigerators, washing machines, air conditioners and other electronic products production base of masstransfer to China, China has become the world's electronic products production base.China's primary labor, technical research and development personnel, land, capital and other factors of production cost advantages still exist, circuit protectioncomponents suppliers more and more in China to expand the scale of production,such as Littelfuse, Bussmann and TEConnectivity were set up in China by joint venture or sole proprietorship. The transfer of production to the international circuit protection components to China, not only to expand the industry market size, will be more advanced technology into China, to improve the overall level of China's circuit protection component industry rapidly, the rapid growth and promote the development of industry. Circuit protection components manufacturers at home after ten years offierce market competition, has formed the Haolilai technology, Shanghai vian havestrong market competitiveness of enterprises, these enterprises will be accompanied by the development of the industry and growing.
(4) the national industrial policy support
Circuit protection components belonging to the new electronic components, the State encourages the development of the industry. The national development and Reform Commission "Guiding Catalog of industrial structure adjustment (2011 version)"amended in 2013) clearly, the Twelfth Five Year Plan "period, we must vigorously develop the integrated circuits, software and model components and other basic coreindustries, encourage the development of large scale integrated circuit equipment manufacturing, new electronic components (chip components, frequencycomponents, hybrid integrated circuit, power electronic devices, optoelectronic devices, sensitive components and sensors, new electromechanical components,high density printed circuit board and flexible circuit board) manufacturing. The company product belongs to the Ministry of science and technology, the Ministry of finance, the State Administration of Taxation in 2008 April promulgated the "national key support for the high-tech field" in the first class of electronic information technology, sixth, new electronic components, second strips of chip and integrated passive components technology, is to support the development of the national policyof products. The company's industry to national industry policy to encourage and support the development of the industry, industry policy environment continues to improve, conducive to the future development of the industry.
2, unfavorable factors
(1) there is a gap between the domestic technology level and the international level
At present, in the circuit protection component industry, high-end technology and high-end product market share still held by the international giants such as Littelfuse,Bussmann, industry, Mersen (GCL), TEConnectivity etc.. The overall strength ofdomestic enterprises and foreign enterprises there is still a certain gap compared, the product structure is not perfect, in power protection device of R & D and productionfield is relatively low, so there is an urgent need to introduce high-end internationaltalent, increase investment in scientific research, equipment upgrade continuously,the expansion of production capacity, and enhance the comprehensive strength of the enterprise.
(2) the domestic enterprise's brand is not high
Circuit protection components is a safety component, so customers tend to choosebrand high visibility and good supplier, and cannot be easily replaced. A few domesticenterprises while in the field of electronic circuit protection has certain popularity, butby the establishment of a relatively short time, compared with international rivals and a certain gap, is at the disadvantageous position in the competition with internationalmanufacturers. Before the issuer to enter the field, market monopoly of foreign enterprises, but also has not formed the scale of domestic enterprises to participate in the competition. The issuer's main rival for foreign companies such as Littelfuse
The issuer's main rival for foreign companies such as Littelfuse, Bussmann etc..
(3) the appreciation of the renminbi will have an important impact on the export of products
In the past three years, the overall trend of the RMB exchange rate against the U.S. dollar's upward. Because the basic factors promote the appreciation of the renminbi,such as trade surpluses did not significantly change, so the expected future trend of RMB appreciation will not change. When the appreciation of the renminbi, the price advantage of domestic and export products in the international market will be weakened, affecting the prices of export products competitiveness.
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