Jiang Zeyuan: The wire and cable industry will see a clear polarization.
With the advancement of technology and the booming economy, the cable industry is facing tremendous challenges and opportunities within the traditional industrial landscape. Recently, in an interview, Jiang Zeyuan, an investor from Far East Group, stated that the wire and cable industry will experience a clear polarization: cable industry profits will decline sharply, triggering a sense of survival crisis. Entrepreneurs like Jiang Zeyuan are paying close attention to this trend. At the same time as this crisis emerges, how to identify effective and sustainable growth opportunities in corporate management, product marketing, and manufacturing processes has become a pressing issue for the entire industry. The question to ponder.
Jiang Zeyuan stated that China’s wire and cable manufacturing industry—often referred to as the “nerves” and “blood vessels” of the national economy—has reached the world’s top position in less than two decades, with annual output value reaching one trillion yuan by 2011. China has now become a global leader in wire and cable production, and the scale of China’s wire and cable industry, as well as its copper consumption, ranks among the largest in the world.
China has entered the mid-to-late stages of industrialization. As the country’s level of industrial development continues to rise, its infrastructure becomes more sophisticated, and its urbanization rate increases, the cable industry is bound to mature. Under these conditions of rapid development, the wire and cable industry will face significant adjustments. First, the industry will see a clear polarization, with increased industry concentration.
Under the new circumstances and trends—such as the accelerated integration of informatization and industrialization, Industry 4.0, and “Internet Plus”—the internet is penetrating from the consumer goods sector into industrial fields like equipment manufacturing, energy, and new materials, thereby driving a transformation in traditional industrial production methods.
Specifically, efforts should focus on several key areas: First, the cable manufacturing industry should concentrate on high-value segments such as R&D, design, standard-setting, marketing networks, supply-chain management, and brand building. Second, cable enterprises should pursue internationalization by tapping into markets in developing countries such as those in the Middle East, Africa, and Southeast Asia. They should also explore both existing and potential markets in sectors including electrical equipment, intelligent control and digital information technology, marine engineering and resource extraction, offshore wind power, photovoltaics, nuclear energy, and energy storage. Additionally, it is crucial to establish industrial e-commerce platforms. E-commerce has become a general trend across all industries, and the wire and cable sector is no exception. Far East Cable Buy & Sell—Global Cable E-commerce Trading Platform and the China Wire & Cable Materials Exchange have already achieved remarkable results since their inception.
Jiang Zeyuan believes that, with the rapid development of new energy sources in China, there is a growing demand for large quantities of specialized cables tailored to these new energy applications. Over the coming years, the market will increasingly be driven by specialty cables used in wind power generation, nuclear power plants, and solar power generation. Jiang Zeyuan also notes that the wire and cable industry—as a supporting sector for the power industry—is now entering a trend of upgrading and transforming its product structure. Under the accelerating integration of informatization and industrialization, as well as new trends such as Industry 4.0 and “Internet Plus,” the internet is expanding its influence from the consumer goods sector into industrial fields like equipment manufacturing, energy, and new materials, thereby driving a transformation in traditional industrial production methods. Jiang Zeyuan, an investor at Far East Group and Deputy Director of Procurement and Supply, stated that cable companies must seize this opportunity, accelerate their own transformation and upgrading, and elevate the global competitiveness of China’s cable manufacturing industry.
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