2018 Industrial Electrical Distribution Industry Status and Development Prospect Forecast

Domestic electrical distribution enterprises started late, and before China's reform and opening up, the small-scale peasant economy dominated, and the distribution scope of enterprises was relatively narrow. Although the proportion of the tertiary industry in the national economy has been increasing since the reform and opening up, and the service industry has developed rapidly, the industrial electrical distribution industry has been developing slowly due to its severe geographical restrictions. Until recent years, especially the 2008 financial crisis, the Chinese government issued a 4 trillion stimulus plan, which greatly promoted the demand for industrial electrical products, thereby driving the development of the industrial electrical distribution industry.

From 2008 to 2010, with the expansion of China's industrial electrical distribution market, some international leading companies began to enter China, such as Rexel, Super Sonepar, and Xike International. Compared with these enterprises, my country's industrial electrical distribution enterprises have gaps in business model, management system, channel coverage and market operation. However, with the slow development of the industry, this gap is slowly narrowing.

During the "Twelfth Five-Year Plan" period, the country entered the development track of "structural adjustment", the investment in fixed assets continued to increase, the transformation of power grids, the progress of urbanization, and the continuous progress of projects such as railway electrification and subway and light rail construction stimulated the The demand for industrial electrical products in my country has driven the growth of the distribution industry of industrial electrical products.

In the future, with the continuous progress of smart grid and urbanization, my country's demand for adhesive end tapes will continue to maintain a growing trend, which will also drive the development of the industrial electrical distribution industry. At the same time, sales channels will show a trend of diversification, and traditional offline sales will continue. In addition, with the continuous development of e-commerce, online sales using the Internet will also be adopted by more distribution companies.

Distribution of end application fields of industrial electrical distribution industry

Industrial electrical products can be applied anywhere there is a need for power transmission and distribution and industrial control. Therefore, the end customers of adhesive end tape products provided by industrial electrical distributors are distributed in various fields such as power and energy, transportation, industry, urban and rural infrastructure, commercial and civil use. The main application links and application fields of medium and low voltage power transmission and distribution products and industrial control products are shown in the following figure:

 Development characteristics of industrial electrical distribution industry

(1) Rapidly growing market size

The development of the industrial electrical distribution industry is related to the scale of industrial electrical products. In recent years, my country's economy has developed rapidly, and fixed asset investment has maintained a high growth rate, which has driven the development of projects such as transportation, metallurgy, energy, and machinery. As one of the supporting industries of these industries, the scale has also shown a rapid growth trend in recent years.

(2) Intensified market competition promotes model innovation

With the development of the market, the competition in the field of industrial electrical distribution has intensified. In addition to the competition within the industrial electrical distribution industry, some system integrators, complete equipment and machinery manufacturers have also joined the competition. The intensification of competition has promoted the model innovation of the electrical distribution industry, and the industrial electrical distribution model focusing on providing solutions has emerged.

(3) The entry of international distributors and the internationalization of the market

With the conspicuous foreign brands of industrial electrical products in the Chinese market, industrial electrical distributors have also entered China one after another, forming a global network of their distribution market. At the same time, with the entry of international enterprises into China, some leading distributors in China have also begun to explore foreign markets. For example, Hyder Control has achieved some overseas sales.

 Regional layout of industrial electrical distribution industry

From the perspective of regional layout, the main markets of my country's industrial electrical distributors are still concentrated in developed regions such as East China, South China, and North China. For example, the current domestic leading Zhongyeda has a relatively wide coverage, but due to the influence of the regional economy and expansion strength, it is still mainly concentrated in South China and East China; and Hyder Control has weakened the core position of Shanghai in recent years. , but in the sales revenue, the proportion of East China is about 65%. It can be seen that the development of industrial electrical distributors is closely related to the regional economic development.

Industrial Electrical Distribution Industry Prospect Forecast

In my country, the distribution mode is the main mode for the sales of medium and low voltage power transmission and distribution products and industrial automation products with sticky ends. According to the data provided by Schneider, an internationally renowned industrial electrical manufacturer, the proportion of its entire product line in China sold through distributors accounts for more than 85% of all sales. From the perspective of subdivided products, low-voltage electrical products and industrial automation control products adopt distribution The proportion of mode is more than 90%. According to the information of manufacturers such as ABB, Siemens, Changshu Switch, and People's Electric, low-voltage electrical products and industrial automation products are basically circulated through distribution channels, and medium-voltage electrical products distribution mode and direct sales mode coexist.

As the proportion of the distribution model in the sales of industrial electrical products has stabilized, the market capacity of the industrial electrical distribution service industry has grown synchronously. According to the statistics of W.W.Grainger, an internationally renowned distributor of industrial electrical products, it is estimated that by 2020, the scale of my country's industrial electrical distribution service market can reach 100 billion US dollars. It can be seen that my country's industrial electrical distribution market is relatively large and has broad prospects for development.