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How Do Abrasive Tools Enterprises Lose Profit?
Dec 26, 2017

How do abrasive tools enterprises lose profit?


Lead: The era of rapid economic development, diamond abrasive tools industry is increasingly competitive. Falling profits, low profits, all of these reasons? In the end who stole the abrasive tool industry profits?


Lack of professional market cultivation

Traditional abrasive products distribution center did not form a systematic marketing strategy, and the lack of relevant regional protection, and a stable price system. At the same time, many consumers buy abrasive products pay attention to the principle of proximity, in a casual hardware store, grocery store to buy, and abrasive tool industry is not closely related to cultivating a professional market. If the formation of a professional abrasive market, through the effective supervision of the market, you can guarantee the abrasive tool enterprises settled is a veritable fact, so as to create consumer purchasing power, and a good market order.


Lack of comprehensive brand capacity

Through the relevant survey, most of the wheel consumers in the purchase of wheel products, the brand as the primary demand for procurement of products. Nowadays, the grinding wheel, the OEM products and the brand-name products which are widely circulated on the market are now mainly rough workmanship, thus failing to achieve the trust of consumers and thus affecting the overall efficiency improvement.


Foreign-funded enterprises to snatch the market

Abrasives tool industry in our country, especially the grinding wheel industry, many small workshop production mode, resulting in the production of products is not enough professional and sophisticated, on the contrary, most of the foreign wheel companies pay attention to "special and fine", focusing on the field of high-end abrasive, resulting in now The basic monopoly of foreign-funded enterprises in the domestic status of high-end abrasive.


Abrasives material rise, profit declines

For many manufacturing enterprises, the cost of raw materials in the total cost of a higher proportion of raw materials, if increased, directly affect the increase in business costs. For example, this year, the tax-included price of the corundum broccoli has repeatedly set historic highs since breaking above 4000 / tonne, up 30% year-on-year in half a year, putting tremendous pressure on the space for profit growth. In recent years, the prices of raw materials and other materials in the abrasive abrasive industry have risen sharply, the cost of materials and labor has increased, and the continuous expansion of the consumer market has led to the continuous reduction of profit margins.