"Going out" has become an inevitable choice for fiber optic cable companies

At present, several mainstream fiber optic cable manufacturers in China have carried out large-scale capacity expansion some time ago, and the peak will reach 150 million core kilometers, which will far exceed the capacity of the domestic market; while the development of the international market still needs time and steps. Or, there will be excess production capacity, which poses a higher challenge to the manufacturers' cost control capabilities and market development capabilities. The first is the construction of the 3G supporting network, and the second is the improvement of fixed network access. The demand for cables in the domestic market is growing steadily, but the volatility is not large. The industry chain may respond to this large-scale production fluctuation. insufficient. In fact, behind the investigation, we can easily find that: the mainstream manufacturers do not very much recognize the absolute shrinkage caused by the market shrink, they are more recognized is the "relative surplus", that as long as their own cost control is better than their peers, they will win market competition.

"Leasing to sea" is indeed a new strategy for optical fiber companies to expand overseas markets. In the next year, the biggest problem facing fiber optic cable manufacturers is how to find new outlets for absolute surplus production capacity. At present, the domestic market capacity is about 80 million cores, and the capacity peak capacity is close to 150 million cores.

Jiang Xiaoqiang, a well-known personage in the industry, once said: "In this case, overseas markets have become a hotly contested place for the military. However, for domestic manufacturers, this is no easy way. We started late, mature markets overseas, and some overseas. Friends and businessmen have been making arrangements for many years. For new entrants, under the premise of ensuring product quality, price factors are more critical in the competition. "But for the price war, this is a typical "killing one thousand, since The "800-billion-loss" strategy has high requirements for economies of scale and cost control.

Jiang Xiaoqiang also pointed out: "This is different from the traditional telecommunications network equipment, equipment manufacturers can take early low-cost entry, make a fuss in the incremental market; fiber optic cable is basically a one-time investment, late expansion is difficult to predict. It seems that There are not many places where equipment market experience can be used for reference, but we can “borrow the boat to the sea” and make full use of the market position of domestic system equipment manufacturers to expand the international market.

'Going out' is an inevitable choice for fiber optic cable companies Qian Jianlin, general manager of Jiangsu Hengtong Optoelectronics, once said: "The domestic market tends to be saturated, the company's production capacity is very large, and 'going out' becomes an inevitable choice for fiber optic cable companies." The lower unit price of cable products (low gross profit margin) and long brand incubation period increase the cost of “going out”. Compared with system equipment vendors, the internationalization strategy of cable companies is quite difficult.

However, the domestic market is becoming saturated. In the future, domestic fiber optic cable companies will face the dilemma of overcapacity, and the development of overseas markets will become an inevitable choice - According to statistics, China's fiber consumption is 100 million core kilometers, accounting for 60% of global use. It is expected that the domestic optical fiber usage this year will be flat or slightly higher than last year, and this pattern will last for a long time.

The ways to go out are various. You can set up offices and branches in foreign countries through your own agent, and you can also cooperate with optical communication equipment manufacturers to bring optical fiber products out through a turnkey turnkey project. Technical output and capital output can also be carried out. Research institutes and factories are established in foreign countries. Local development and production, local talents can be solved, and local services can not only save a lot of transportation and transportation costs, but more importantly, it is easy. To solve the problem of "acclimatization", you can also enjoy the local preferential policies and gain an advantage in the competition. It is entirely possible to grasp the rare opportunities and devote special efforts to internal efforts to occupy the international market.

In short, in the face of fierce and fierce competition, it is better to develop the international market and look for new opportunities instead of “bloodying” in the domestic market. This is the inevitable choice for China's optical fiber and cable companies to regard 'going out' as an optical fiber and cable company. Exploiting the international market has become the focus of development of major domestic fiber optic cable companies. In the face of the gap, China's optical fiber and cable companies should set clear goals, pay close attention to internal strength cultivation, firmly go out, and steadily open overseas markets.