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industry is facing the market reshuffle

[REVIEW] From the Spring Festival, to present the entire appeared in mass market decline, except for a few large enterprises flat or slightly up, the large number of SMEs have closed their doors. I did not think the market\\ s rise from last year to this year\\ s downturn, only a fraction of the effort.

\"Has been saying the market began to shuffle, no one thought would be this year from the Spring Festival, to present the entire domestic solar water heater appeared in mass market decline, except for a few large flat or slightly enterprise growth, a a large number of SMEs have closed their doors. I did not think the market\\ s rise from last year to this year\\ s downturn, only a fraction of the effort. \"A person in charge of corporate marketing solar energy poured out to reporters several days of repression in the heart of the\" grievances. \"

Back in January of this year, the per capita number of domestic solar companies responsible for this year\\ s market trends to give a \"call\" the statement, and even made some companies more than doubled sales jumped target. With the Spring Festival, \"home appliances\" announced a new round list of winning companies, 79 new companies, with 92 companies winning the first round, and sometimes ride up to 171 successful enterprises in rural markets, opened the domestic solar water heater market, a new round of expansion of the big screen.

 Weak internal and external growth

 Did not last long. After the Spring Festival, the traditional start of the season the solar market, many companies are planning to market in 2010, seeking \"the greatest piece of cake.\" However, due to the Spring Festival, the nation appeared more severe extreme weather, the rural market demand declined significantly. Meanwhile, nearly 200 successful companies, nearly a thousand non-winning companies are raring root out rural market pie, \"external\" appeared under the entire market, \"continued to slump.\"

 Jiaxing Solar Energy Market Tongji Minister Han Qiang said in private that, in recent months, domestic solar water heater into a dilemma in marketing an embarrassing situation, put a lot of urban and rural sales, large-scale product price promotion, but the company\\ s market sales did not achieve the desired results. Promotional activities in rural areas are each invested thousands of dollars, do not achieve results, they can not do sales.

\"Do not do activity is to die, do the activity is seeking death, but rather than waiting to die, better to court death, might be able to find a new way.\" Jiangsu Sun Bao Zhang Shengli, director of marketing a new energy company of many of its dealers to issue the above initiative, he has more than 20 days each month are in the market line, to help dealers to do with rural activities.

However, with some large companies can still make a strategic investment in a series of promotions and low-cost products, the number of SMEs with limited resources, is difficult to invest in the market. Person in charge of a solar energy company in Jiangsu to reporters calculations, since the successful \"home appliances to the countryside\" since, in order to develop the rural market network, the company\\ s overall net cost of investment has already exceeded 180 million, but results from the total amount of investment in rural areas only 30 million, continue to only invest if no return, only a dead end.

Communication with business reporters, distributors investigation learned that the current market, there have been several successful \"home appliances\" in the case of solar energy companies out of business shutdown, the future will be the normal operation of these enterprises are still difficult to judge. The number of companies in that industry-down has been a foregone conclusion, many business opportunities for this year only, \"October\" Golden Week before.

An industry source told reporters that this year, the market growth in the number of firms does not exceed five, flat with last year, the company can not achieve more than 10 other companies have appeared in different ranges of 10% -50% of the decline. Nearly 30% of companies have discontinued a few months, mainly in Zhejiang, Jiangsu, Shandong and other solar water heater manufacturing province, Jiaxing, Zhejiang region which lay the largest number of solar companies.

Companies looking for future growth prospects

Since 2005, the entire domestic solar water heater market has maintained strong growth momentum, driven by the needs of the rural market blowout in the short term to promote a large number of domestic solar water heater company\\ s rapid development. Senior industry observers told reporters the cold leap, to some degree, this growth in many solar energy companies, not from their own market and demand for the pull, but by the rigidity of demand-pull market.

However, the recent two years, the development of rural solar market has been demand from the initial blow, entered a new phase of consolidation, the market will be repeated and adjusted, although the total still maintain a certain growth, but growth has put significant slow. However, the number of firms to enter the field of solar energy has increased exponentially.

Sun Ray industry analysts believe that the solar market in rural areas in recent years the cake is stable, but \"the people eat cake\" increase a lot, which will naturally arise, \"survival of the fittest\" rule, a number of enterprises through the establishment of their own core competencies from the strong pulling power of the market, accounting for a relatively stable share of the cake, and more companies will have to face the embarrassment of being eliminated.

Cold leap forward that the current market decline is not terrible, on the contrary, many domestic enterprises which to send a warning: the market will not always smooth sailing, companies must find against the risk of overall strength. This large domestic enterprises will be \"a blessing in disguise,\" and indirectly raise the threshold to promote the industry to drive the industry to accelerate the brand concentration rose.

Reporters noted that, although in recent years, domestic companies have claimed to achieve \"rural, urban, overseas\" three legs of the strategic layout. However, nearly 90% of the market-oriented enterprises are still rural, and urban and overseas market share to domestic enterprises accounted for only 20% of overall sales. Domestic enterprises in the urban markets did not find an effective way to grow, and to Pete, Bedford Wright as the leading representative of the overseas enterprises in the development of the domestic market is not going well.

Cold leap forward that the current for many domestic enterprises, the establishment of decline in response to market demand, most effective way is to establish a multi-legged walking as soon as three-dimensional strategic layout. At the same time, but also within the enterprise to build the brand or product as the core competitiveness, the formation of endogenous growth of the market.

Related links: Tongji recognized for industrial upgrading and restructuring the sun

May 26, the State Department counselor, China Renewable Energy Society · Advanced, China Renewable Energy Society, Vice Chairman Zhao Yuwen, China Renewable Energy Society thermal Commission Zhengrui Cheng and his party of five experts and scholars, to Jiaxing City, Tongji sun New Energy Co. of automatic production lines were investigated, Tongji sun Kim, general manager, introduced the modern pipe lines and advanced production technology situation.

Tube Jin said that as the solar thermal industry, Zhejiang Province, the first company to introduce automatic production line, Tongji sun through industrial upgrading, large-scale expansion, brand building and other means to comprehensively promote industrial upgrading, Zhejiang solar energy, but also Tongji sun as a platform will be in the national and even global markets show the level of manufacturing enterprises in Zhejiang and innovative strength.

· Advanced Tongji sun for solar thermal utilization in China in recent years, developments in the field results affirmed that he hoped to seize the company Tongji Sunshine State \"home appliances\" the policy of the opportunity, through the product technology, marketing and brand building, etc. constantly efforts toward a higher goal. Zheng Ruicheng Tongji sun wants to seize the current rapid development of the domestic water heater industry, opportunity, through increased production equipment upgrade for rural brothers sent \"safe\" solar water heater.

According to Chang-Qing Wang, general manager of marketing, this year in the domestic solar water heater market as a whole experienced growth slowed, demand in mature markets saturated background, Tongji sun-end market through increased investment, especially the full use of \"Famous Chinese Trademark \",\" home appliances \"successful brand advantages of resources, in the domestic market to maintain stable development momentum.

It is reported that in the domestic solar water heater market, Tongji sun, though started late, but the rapid development through the \"first, after market factory\" idea of ??a unique operation, quickly grasp the domestic solar water heater market in the first round of the opportunity for development, success among the domestic market leading enterprises. Especially in the branding, the Tongji sun made the first in the industry within the \"safety first brand of solar\" differential positioning, by highlighting the quality of solar products and safety performance, to grasp the psychology of consumers in rural areas, promote the enterprise in the market marketing, and so to enhance the strength.

Chang-Qing Wang said that in recent years, through market-based Tongji sun, insist marketing network, professional marketing team, dealers and other market towns anchor of joint development, to enhance the synchronization for the enterprise in the market to enhance the scale of the accumulated wealth of resources and experience. At the same time, together with a clear idea of ??market operation and stable development strategy for dealers and employees have become Tongji important driving force for the development of the sun.

Of \"industrial upgrading as a symbol, the sun will pull Tongji large-scale expansion in the national market the new prelude to 2010 as a starting point, the sun will be fully opened Tongji breakthrough in the next decade of self, ranks among the industry leader in brand strategy pace. \"tube Jin says.

Beware of the aging brand industry

    China\\ s solar water heater industry, only a short history of three decades, we should say the sun is a very young industry. However, that is, in this sunrise industry, there are a number of solar water heater business has begun to show signs of aging brand, the lack of proper living in the spirit of sunrise gas industry and energy, showing a slack, lax, stagnant, and those action large, high-profile work, activities, and strong compared to the same industries and enterprises, these companies appear to be age.

    Aging performance of the brand

    Around the solar water heater industry in the aging brand, you will find nothing less than the following situations: management ideas and business strategies obsolete, the lack of innovation; ignore the brand communication, the role of promotion, very little to do promotion, no new ideas or ways to promote ; advertising fits, drill no functional demands of confinement; will not be effective use of existing resources to integrate marketing, can not form together; channel aging, poor communication companies; dealers wait for customers, rarely take the initiative to do the activity, doing promotion; products replacement is not timely, the appearance and function is not new; the image of the old store, promotional materials out of date.

    These problems occurred in the longer established companies, in fact, a long history to the enterprise is not entirely good, it may become a stumbling block, because the business for many years and the idea of ??settling down to manage the various systems in the late change is difficult, if these new systems and the current conflict situation, they will inevitably delay the development of enterprises back.

    Enterprises have the life-cycle

    United States is very influential management expert Charles Keaidisi an Iraqi being touted in today\\ s theory: corporate life cycle theory. Aidi Si that the company is a living body, has from conception to birth, growth, aging and then death of the life cycle. We already know the product life cycle, in fact, enterprises have, but usually the life cycle longer.

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    Ai Disi the corporate life cycle is divided into 11 stages: incubation period, infants, toddlers, adolescence, early prime, prime post, stable, aristocratic period, pre-bureaucratic, bureaucratic phase, death phase. According to this classification, we talked about the emergence of corporate brand aging stage of stable and generally range between pre-bureaucratic.

  
Stable is the company\\ s turning point, the performance curve in the diagram is to develop on the apex. Although the company is still thriving all look, but doing things more and more tend to be conservative, easy to meet the status quo, it seems that there are no major problems, but the decline is quietly germinating seeds. The period is the essence of the word aristocracy – mediocre. To this stage of the business has no entrepreneurship, no longer have real long-term goals and career pursuit. To the bureaucracy of the early problems began out of the water, and become more worse, internal and external conditions are not good, business recession seriously.

    Aging has emerged brand companies do is, with reference to Ai Disi theory, to identify their current stage of business, analyze the extent and causes of the problem, and then actively and rapidly develop countermeasures to prevent the aging brand, the problem in time control and to be addressed.

    Why aging brand

    Brand is the root cause of aging rigid ideas, with little or no attention to market dynamics, there is no ability to grasp the market trends, out of touch with the times. This lack of long-term development of business ideas, and innovative ideas do not just try to maintain the current size or profit, without doing more and better ambition and motivation, the results of slack in brand building, promotion of communication, the terminal building, channel optimization to attract talent, etc., all kinds of problems await.

    Early suppression system business vitality. Although in recent years, rapid development of solar water heater industry, also tend to regulate the operation, but because the industry is starting from the grass-roots industry workshop, when the business is often consciously or unconsciously adopt extensive management system is not perfect, if there are loopholes management methods and systems improvement in the later failure to make timely updates, they tied the development of enterprises so that enterprises lack vitality.

    Follow the trend of imitation is serious. Electronics industry, cottage style popular in the solar water heater industry, so, too. Whether it is product development and design, product selling, or advertising creative, marketing, many companies see how others do it, they will follow to imitate. Go back with the others, even if only a half step behind, will eventually go backward. Wise to have faith and courage, the initiative attempts, innovation, management and marketing to form their own routines.

    Keep up with rapidly changing consumer business trends. The idea is now very active, advocating new things, new experiences, which makes today\\ s rapidly changing consumer trends, consumer products today, like, may lose interest in a few days, mobile phones, MP3 and the like frequent upgrading of electronic products well to verify this. Overall, consumers are now like new, fashion, entertainment-oriented things, and innovative ideas is that they always the same psychological expectations. Even the large purchase of , consumers have a similar look, hope in the product design, feature set, in areas such as marketing a new breakthrough. Obviously, if the solar water heater company also ignore the current consumer trends, closed-door production, put on the market of consumer products is likely to be neglected.

    The plight of aging out of the brand

    The problem of aging industry brands which are present, Matsushita Electric, Tsinghua Tong Fang, Wahaha, Confucian banquet of wine, the aging trend of the brand Jianlibao have or have already gone. However, if the brand of aging in this sunrise industry of solar water heaters, spreading, there will be \"the industry is not old, enterprises will be bad\" bad situation, in turn, affect the results of business recession healthy and sustainable development of the industry. For the individual enterprise, the brand of aging great harm, will lead to decline in business efficiency, reduce profits, not long-term development, and eventually abandoned by the market, toward extinction.

 So, how to resist aging brand it? The final analysis, the core needs to be the word: innovation. Solar water heaters should reflect the spirit of enterprise, timely diagnosis of the problem, in terms of ideology, both hardware and innovative ideas to abandon the old-fashioned brand of gas, to the younger, maximizing the life cycle.

    1) innovation in terms of ideology

    According to industry development status and market conditions to adjust the direction of the development of long-term strategy. Believe that innovation has sufficient vitality to business, strong competitive forces, not afraid of change, as long as is necessary should be \"frustrating\" for something to do renewal. To take steps in the idea innovation will lead to innovation-linked reaction, management ideas, production technology, branding, terminal building, channel optimization, a difference in all aspects of the formation of the overall progress of the situation.

    2) development of new products

    In market research, based on the latest consumer trends, develop new products to meet consumer demand and eliminate unwanted products. Introduction of advanced fashion design, designed in the appearance of the product, product packaging, feature set on getting younger, fashion-oriented. Product is the most direct voice for consumers, product popularity, companies will naturally be recognized.

    3) update the brand image

    Brand image of the reforms include the replacement of trademarks, updated promotional materials, decoration stores, improve the business environment. Although the trademark is not free to change, but out of date if it does not show there some ideas, it is necessary to replace. Publicity materials also need to change the layout or the appropriate forms, or too boring single, the lack of audience appeal. The store represents a company\\ s \"face\", the need for regular maintenance, well-set lighting, reasonable place prototypes and display products, to customers a fresh experience for them to create a more comfortable shopping environment, but also enhance the brand style. Create a favorable environment for production and office is also very important, you can enhance corporate leadership in the government, consumers, dealers and visitors to the image.

    4) Regular communication to promote the new normal

    Adhere to disseminate promotional activities carried out without interruption, such as soft paper through newspapers, Internet and other media – global brand network – time dynamics of foreign communication companies; launch a new marketing campaign rally in the market; increase the amount of advertising, and timely use of new advertising creative; not only engage in promotional activities during the festive season, but also make full use of the hot spots, and company-related events from beginning to engage in activities, so that the terminal fully mobilized; to carry out public action and to spread. Also can be used to invite media to attend the meeting, held a press conference and other forms of communication. Business in public, \"continued torment\" energy also emerged.

    5) enhance communication between manufacturers

    One of the reasons leading to brand the aging is poor communication between companies and distributors, is no insight, no execution under, even the communication is not smooth, brand vitality come from? So to fully communicate with the dealer, on the one hand to the distribution commercial time to communicate the company policies, developments, understand the market through distributors on the other hand, the formation of good communication channels to ensure two-way information flow, increase market sensitivity and speed of joint responses.

    6) careful selection of voice

    Another noteworthy issue is the spokesperson. Hire stars, celebrity as a spokesperson is a common image of the solar water heater industry promotional tactics, but improper operation is not only no good effect, there will be drawbacks. Popularity is not high, scandal-ridden or criticism by the voice, to a certain extent, affected the development of enterprises, so be careful when choose its representatives.

    Before the problem completely exposed, recognizing the importance of innovation, and thus to take measures to effectively prevent aging brand, then the solar water heater business can be like McDonald\\ s, Microsoft, Nokia has a long history of these only, but also vibrant businesses, long-lasting standing in the vibrant solar water heater industry.