Advantageous and unfavorable factors affecting the development of the consumer electronics industry

Introduction: The scale of China's consumer electronics industry continues to expand, especially the popularity of various types of intelligent terminal products, making the downstream demand for consumer electronics products continue to flourish.

(I) Advantages

1) Strong downstream demand and huge market capacity

The number of users of consumer electronic products worldwide has been continuously expanding, especially the popularity of various types of intelligent terminal products, making the downstream demand for consumer electronics products continue to flourish. At present, China has become the manufacturing center of the world's consumer electronics industry. At the same time, the steady increase in the income of residents and the increasing popularity of consumer electronics products such as mobile phones have made China one of the largest consumers of consumer electronic products in the world.

2) Industry consolidation continues, and industry concentration continues to increase

Under the major changes in the global macro economy, some small-scale, backward technology and poorly managed consumer electronics companies will be gradually eliminated, triggering a new round of industry reshuffle. The future industry resources will continue to be integrated and configured, and the industry concentration will be further improved. This will help optimize the production and operation environment of the global consumer electronics industry and further promote the progress of the entire consumer electronics industry.

3) Strong support for national industrial policies

The electronic information manufacturing industry is the parent industry of the consumer electronics industry. It is a strategic, basic, and leading industry for the national economy. It is the technical support and material basis for accelerating industrial transformation and upgrading and the national economy and social information construction. In order to promote the development of electronic information manufacturing, the state has formulated a number of policies and measures as well as plans, and has given strong support to the policy.

(B) adverse factors

1) The domestic product quality eligibility standards can not keep up, affect the competitiveness of products

The lack of production technologies and qualified standards for domestic consumer electronics products will affect the competitiveness of products. The lack of standards and backwardness are mainly reflected in the low overall level of technical standards, the long development cycle, and the aging of standards, the inability to keep pace with changes in the market and the needs of enterprises, and the inability to adjust the economic structure, standardize corporate behavior, and improve product quality. The number of China's consumer electronics industry standards in the international consumer electronics industry standard share of less than 5%, which will directly affect the international competitiveness of domestic brands.

2) The lack of highlights of core technologies

China is a global manufacturing center for consumer electronics, but it is not a creative center. In terms of upstream components of consumer electronics products, China’s dependence on foreign countries is very high. Its main reason is that domestic companies’ R&D capabilities are relatively weak and product design capabilities are not strong. The core technology is controlled by people is the main constraint on the development of consumer electronics products in China. bottleneck.

? Industry basic risk characteristics

(I) Macroeconomic fluctuation risk

The growth rate of the consumer electronics industry is closely linked to the fluctuation of the macro economy. During the booming period, the funds held by enterprises and residents are relatively abundant, which makes their demand for consumer electronics products expand when the economy is in recession. As a result, the income of enterprises and residents and their personal cash will be reduced correspondingly, and their spending on consumer electronics products will also be reduced. As a result, the consumer electronics industry market will further shrink. In recent years, high commodity prices and labor costs have also exerted greater pressure and risks on the profits of the industry.

(II) Market Competition Risk

China has now become the world's largest consumer of consumer electronics products and an important producer. China's consumer electronics industry has a large number of companies, of which industry leaders rely on technology and brand advantages to continuously increase market share. Smaller companies in the industry rely mainly on price advantage to acquire customers. The market concentration will be further increased in the future. The market space of small and medium-sized enterprises in the industry will be further compressed and the market competition will be fiercer.

(III) Risk of Technology Update

The consumer electronics industry involves cross-applications in various disciplines such as electronic information and internet technology. The requirements for technology research and development are relatively high, and the related technology update cycle is short. If the enterprises in the industry cannot keep up with the development of new technologies, the research and development capabilities will increase. Production standards, timely launch of new products, the company's products may face the risk of being eliminated by the market.

? Industry barriers

The main barriers to entry into the industry are as follows:

(A) channel barriers

Because the consumer electronics industry has high requirements on product quality and each customer has different requirements for products, once the company establishes a cooperative relationship with customers, cooperation will generally continue. Therefore, new entrants will acquire customers. Difficult. Unless there is a product quality problem or the competitors have obvious technical advantages, customers generally do not easily change suppliers. This mode of cooperation allows companies and customers to rely on each other. With the continuous accumulation of customers, companies have established more stable sales channels, and new competitors entering the industry are generally difficult to compete for their market share.

(B) Capital Barriers

The research and development and production of consumer electronics products requires a lot of labor costs and equipment. Newcomers entering the industry will need large amounts of money to build production plants, warehouses, purchases, production, R&D, testing, and other equipment. Therefore, for potential entrants, there are high barriers to entry into the industry.

(III) Scale Barriers

Enterprises in the consumer electronics industry need to establish their own scale advantages to reduce the cost of products and ensure the profitability of the company. It is difficult for newly-entered competitors to achieve large-scale production in a short period of time to be profitable. In addition, as China’s consumer electronics products are mainly export-oriented and highly dependent on foreign markets, foreign customers generally require companies to have multiple technical or quality certifications, and the preconditions for certification must also require a certain scale of production. As a result, new companies have entered the consumer electronics industry and formed a scale barrier.


Report details page: http://service.made-in-china.com/market-analysis/industry-analysis-report/649264.html
More reports: http://service.made-in-china.com/market-analysis/industry-analysis-report-1.html