Problems in Abrasives Manufacturers

"To be or not to be, this is a question".

The famous saying from Shakespeare’s "Hamlet" is a reflection of current situation abrasives manufacturers are faced with: slow development, fierce competition, soared raw material price, thinning profit and smaller living space. Under such living conditions, what is the right thing for companies to do? Maintain stability to survive or upstream and make breakthrough?

All phenomena make it clear that abrasives industry market trend is poorer than what it was last year. The Canton Fair turnover experienced a 7.23% decrease, which was the lowest in the five years; a large number of small-scale abrasives companies are faced with elimination. Abrasives manufacturers have to be optimistic and seek to solve the problems.

1. No Direction

In fact, external environment change includes various aspects such as product, sales channel, users, marketing, etc. the problem lies in the fact that while abrasives manufacturers have figured out a solution to all changes, the problrms resulting from these changes have made them hard to start. All uncertainty and challenges have made it extremely difficult for abrasive industry to go forward, since they have already fallen behind of other industries. Actually, the situation has thrown light upon abrasive industry to enhance industry situation analysis and forecast, keep up with market trend and user demand to make adjustments.

2. Difficult to Find New Ways

Abrasives manufacturers hold that after doing decades of abrasives trade, it feels as if they do not know how to sell grinding wheel. The original approach is no loner effective, which seems out of date. In the past few years, abrasives manufacturers have been familiar with exhibition marketing, relationship marketing, even they just go to a hardware mall, they can easily judge which store sell best. However, for the moment, they have little idea as to how to make people know about their products. it is a fact that with the rapid development of the internet, an even greater proportion of orders are done on e-commerce platforms, traditional marketing pattern is losing its popularity. At this moment, sales pattern reform and innovative issue are on agenda. However, on one hand, it is not easy for abrasives manufacturers break away from traditional sales patterns and seek new approach; on the other hand, market situation for the whole abrasives industry is changing tremendously, what kind of innovation is effective? It is a question. Therefore, abrasives companies have become confused and panic.

3. Profit Declines While Cost Increases

In overall economic environment, rising costs have been a shared phenomenon in various industries. Abrasives manufacturers have to seek opportunities from micro profits.

4. Industry Structure Change

Abrasives industry structure has changed. Some people have little confidence in this industry, some people have quitted, some people have invested more funds and energy in other industries. Many companies stability is faced with huge challenge: company profit decline make it extremely hard to survive, not to mention increase the wage for workers; the sluggish market and the products that are difficult to sell have made strong impact on employee positivity. Many people choose to resign. Only by stabilize morale can the market be stable.

5. E-commerce Influence

Internet sales channel has become prevalent in the first half of 2014. It is an inevitable trend for abrasives industry. However, it has brought some abrasives companies problem--sales channel. Firstly, store. In the rapid development period of abrasive industry, some famous brand have multiple markets in Chinese market, which become a major channel. Under current situation, these distributors have confronted with setbacks, high costs and low profitability have resulted in reduced stock even close down. Secondly, although e-commerce and abrasives combination has been widely accepted, to some extent, it has brought abrasive industry a new idea, meanwhile, it has brought abrasive industry reform problem: for most traditional abrasive distributors, fear exceeds hope.