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Gross margin decline of solar companies to seek new profit growth point

Recently, the refrigeration Express reporter visited Jiangsu, Zhejiang market was informed that a sharp rise in raw material prices, the competitive situation of domestic brands, many mainstream brands showed signs of weak performance, although the growth in sales, but profits are declining.
Even so, the solar water heater is not price increases. Many enterprises by strengthening internal management to digest more than some of the pressure, but this is far from factors such as rising raw material prices to make up the pressure. While many businesses by adjusting the product structure, the stainless steel stent replaced by aluminum or cast iron support bracket, and lower management costs and other measures to ease the pressure, from a certain sense, to solve the problem, not the long-term approach.
In addition, the brand competition is heating up the state also increased the pressure on the enterprise. As industrial technology low, there is no mandatory access system, solar water heater manufacturers in recent years, enterprises have been operating more than 4,000. And maturity is different household appliances, solar water heater industry is still no absolute mature brand, the top few in the market share is still low, the industry's marketing ideas, marketing management, service system and so immature, industry competition still at a low level. Even if the overall market sales of large brands, brand maintenance, market expansion into more profit space is limited. According to general manager of the brand introduced a line, although the scale of product sales go up, but the high cost of doing business, but profits drop down. First-line brands like this, not to mention the second and third tier brands?
Who can release the pressure as soon as possible, who is the last winner. Solar water heater business to fire rebirth in the bath?
 
 
 
 
 
 
 
 
 
 
 
 
 
Author:Haining days song solar technology Co., LTD
website:www.sunnyrainsolar.com
main product:Solar energy     Solar water heater   Solar collectors   
 Integrated pressurized Solar water heater  Split Pressurized solar water heater    Compact solar water heater

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