Why does the domestic mold industry have been fighting the price war?

2019-03-15

Why the domestic mold industry has been playing the price war? 

At present, there are many china tool manufacturer engaged in mold production at home, but the scale is relatively small, the basic model is small workshop, most is  cheap mould, and the content of science and technology is very low. 

Small mold enterprises produce products are basically imitation, resulting in more and more low-end homogenization molds. Mold enterprises are facing the problem of overcapacity and backlog. 

In order to continuously improve sales, mold enterprises will lower the price of products. A number of mold enterprises have reduced prices, resulting in the whole industry in trouble, and the profits of enterprises are less and less. 

When profits continue to shrink, enterprises have no surplus funds for product research and development.


Long term price war within the industry will affect the whole industry. 

China's moldenterprises should upgrade their technological content from the current price war to the competition of science and technology. 

From the current market share alone to gain no profits, become a common market share profits. 

It is believed that after the Chinese enterprises change the competitive way, the production level of the enterprises can be greatly improved, and the vicious competition can be effectively rid of, and the mould industry will be more advanced. 

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