Simply pursuing low cost, the whole industry will be destroyed in the end.

Abstract On May 28th, the Tujia Abrasives Branch held a symposium on "Anti-unfair Competition" participated by some industrial fabric manufacturers. From the situation reflected, several excellent suppliers of coated abrasives with advanced equipment and innovative capabilities in the industry are suffering from the domestic raw material market...
On May 28th, the Tujia Abrasives Branch held a symposium on "Anti-unfair Competition" participated by some industrial fabric manufacturers. Judging from the situation reflected, several excellent suppliers of coated abrasives with advanced equipment and innovative capabilities in the industry have been willing to adjust their business strategies or move to the international market due to unfair competition in the domestic raw material market. Manufacturing companies work together; or focus on other types of industrial fabrics, no longer use coated abrasives as the main business.

This is a very dangerous signal. In the three main materials cloth, glue and sand of the coated abrasives, the original fabric backing base accounts for 70% of the weight. The quality of the original cloth is good or bad, and the grade of the original fabric directly determines the quality of the coated abrasive. Its importance is self-evident. In the 1980s, China introduced the advanced manufacturing technology of wide abrasive belts, and the domestic raw material manufacturing enterprises represented by Zhumadian Zhongtian Textile Co., Ltd. cooperated with Baige to work together to solve the problem of digestion and absorption of imported technologies and localization of raw materials. Great contribution. It can be said that without the participation of raw material enterprises, the advanced technology of wide abrasive belt manufacturing cannot be successfully introduced, and it takes root in China. Without the cooperation of raw material enterprises, it is impossible to create the splendour of China's coated abrasives today. . This is the case in the past, and even more so today. Especially in the current critical period of transformation and upgrading of our industry, if there is no strong support from the original manufacturing technology, the innovative development of coated abrasives is an empty talk; if there is no upstream and downstream enterprises to go hand in hand, China's coated abrasives will change from big to big. Strong can only be on paper.

Unfair competition in the raw materials industry has a long history. One aspect of the problem is the structural overcapacity of the industry. The middle and low-end products are flooding the market. Some merchants do not hesitate to shoddy, cut corners, and fraudulently operate in order to compete for the market; or sell at cost or below cost. Impacting normal market order and provoke malicious competition; on the other hand, some buyers regard price as the first “dayline” for enterprise purchase, disregarding the basic cost, reasonable profit and due respect of production enterprises. Pressing the price, defaulting on the payment, and extending the account period. The existence of these phenomena has disrupted the normal market competition order and worsened the market competition environment. In the long run, it will definitely cause the bad consequences of “bad money” expelling “good money”, which is catastrophic for the original cloth manufacturer and the whole industry. as a result of.

Behind the chaos of the industry, the industry industry standardization work is seriously lagging behind. An industry that does not have the constraints of a mature series of standard specifications cannot be chaotic. Industry veterans pointed out that the reason why our industry is doing low-end and mid-range is so large that high-end can't be done, because the industry has not formed product standards. People of insight in the industry are clamoring to set industry standards and regulate industry behavior. This should be the top priority for future work of industry associations.

Industry competition, in the final analysis, is the competition of technology, the competition of talents, the competition of management, and the competition of business models. However, no matter who they are, they will fight for the price and reduce the cost. In the end, they can only be defeated by two defeats. As a modern practitioner, obeying business ethics, respecting partners, operating in good faith, competing according to the rules, and maintaining reasonable corporate profits, this is the bottom line of business we should abide by.

In the "new normal" period of the economy, any single "buyer" or "seller" is impossible. It must be a pattern of cooperation and win-win. To resolve the structural excess of the industry, to achieve the transformation and upgrading of the industry, from large to strong, raw materials and manufacturing companies must join hands, mutual respect, collaborative innovation. If you continue to pursue low cost, the whole industry will be destroyed in the end.

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