How Abrasives Companies Deal With Fierce Competition?

With the rapid development and popularization of industry technology, the technical threshold for entering abrasives industry tends to decrease. Most products’ production capacity and output have obviously overflowed in this industry, and the supply has already far exceeded the expectations of the market demand. A growing number of fields enter the fierce competition.

How small and medium-sized abrasives companies find their way out from the “brutal battle”? This is the first question they should consider in the beginning.

First of all, let's think about several key questions: What type of field filled with competition in this industry? What are the means of competition? What results will be brought for them? They should make these problems clear, and find the way out for small and medium-sized abrasives companies.

First, what type of field filled with competition in this industry? Actually, from high-end to low-end, the competition exists in almost all fields, and in the low-end field, there are more participants.

Second, what are the means of competition? Generally speaking, it includes two conditions. On the one hand, they improve the quality of products, to satisfy higher requirements of customers ; On the other hand, they reduce the price, to fight with their rivals with lower prices. Generally, high-end manufacturing areas focus on the quality, and low-end manufacturing areas choose price competition.

Third, what results will be caused by these two fundamentally different strategies? Improving the quality can create new consumption area, expand customer base, improve competition threshold, reduce competitors, and thus improve profit margins.

Price competition can get more orders, further reduce profit margins, and may lower the quality of products even for reducing the cost. In this way, there are only a handful of survivors that use scale advantages to offset the decline in profits.