In recent years, due to the continuous entry of foreign test boxes, rising raw material prices, and relatively weak technological innovation, there has been excessive competition in the price of test boxes. Many companies have obtained market share by competing for prices and sacrificed product quality in exchange for meager profits. .
After discussion, a proposal to establish a cost price control system was adopted by everyone. According to this idea, the industry association takes the lead in setting the industry product cost price, and various functional departments and enterprises participate in the supervision. Any enterprise that appears to be significantly lower than the product cost price will be investigated and punished. To solve the vicious cycle brought about by low-price competition, and promote the healthy development of the industry. It is reported that they will start to establish a set of cost-price prevention and control system to curb the intensified low-price vicious competition.
After struggling with the price war, it will inevitably lead to a dead end. In the final analysis, low-price vicious competition is because the added value of the brand is too low, and the industry should integrate and upgrade as soon as possible. Due to vicious competition, the industry is generally in a situation of low profit or even capital preservation. Many companies have invested funds in high-margin and high-return industries such as real estate, which slowed down the development of the main business. This will not only affect the development of the enterprise itself, but also damage the hard-won overall image of the industry.
HUZHOU JIHAO NONWOVENS FABRIC CO.,LTD , https://www.jihaononwovens.com