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Corona Virus's impact on China's USB cable industry

2020-2-21 0:18:47

Today is the first day of we go back to work after the long holiday. We have successively received orders from customers in different countries for USB cables, but 90% of the material suppliers have not yet gone to work, and some even the entire industrial park has been closed.  The epidemic will not be the last straw to crush the camel. World economic growth has long been shaky. The United States, the world ’s largest economy, is faltering, relying on Trump ’s US priority rumbling and the Fed ’s blood.  It would be even more dangerous if China, the second economy, and Japan, the third economy, were affected by new crown pneumonia.  Although our top priority is to go all out to control the epidemic, at the same time, we must also guide and assist enterprises to restore production capacity as soon as possible scientifically and reasonably.  Some people say, "2019 is the hardest year in the past ten years, but it is most likely the best one in the next ten years."  The people's heads across the country have spread to all walks of life. Next, we will try to analyze the "crisis" and "opportunity" that the epidemic may bring to the cable industry.

Short-term "crisis" The corona virus  has brought about changes in China's economic environment, causing related industries, including the USB cable industry, to step on a sudden brake, and various grand production and operation arrangements have been disrupted by the sudden outbreak. 1. Production influence Affected by the epidemic, the resumption of work in many cable industries has been repeatedly delayed, leading to insufficient production capacity in the end consumer market, especially in the Zhujiang river provinces except Hubei, where many cable production bases are concentrated. ① The production capacity was greatly affected in the first quarter. Enterprises were unable to resume work, production was postponed, and production capacity was insufficient. ② The new products of consumer electronics products, many of which are scheduled to be released. ③ The epidemic is raging, the cable supply chain is blocked, and the domestic and even global cable supply chain system is trapped.

2. Sales influence During the epidemic control period, all kinds of offline stores with dense crowds were forcibly closed. For the traditional dealers who rely on the form of store sales, the blow was huge, and it was a danger.  The severity of the epidemic has caused the public to have a certain fear of travel. Global online sales will continue to be popular in the future.

Long-term "opportunities" Looking around the country, the cable industry will be affected by the epidemic, but for manufacturers with technical research and development capabilities and maintaining a certain amount of inventory, it will precisely accelerate the pace of evolution because of this incident. 1.Promote the reform of the payment cycle of the USB cable industry For most cable companies, a broken capital chain is a common and important crisis in the industry.  In the outbreak of the epidemic, some of the cable companies affected by the epidemic will take advantage of the business model of small profits but quick turnover, but this will bring considerable financial pressure.  The common feature of these enterprises is that their product quality and services are not mature enough. Once the customer delays payment due to the outbreak of the epidemic, it will cause the company's own capital chain to be disconnected, resulting in the inability of the company's funds to operate and can only be declared bankrupt.  Moreover, among the preferential policies issued by various local governments, enterprises that hold competitive advantages will be more vigorously assisted.  In general, this epidemic is a crisis in a large way. If the ability to resist risks is weak, there will be a danger of being overwhelmed by the crisis waves, but from another perspective, it is giving us a chance.  As long as you are good at seizing the time, improving yourself, calming your emotions, stabilizing your attitude, and taking a firm stand, take the initiative to innovate thinking and change methods, and actively improve your marketing strategy, you can stand out in the current market environment, and use the current situation to open up a favorable new battlefield.  .

2. Improve quality and vigorously promote brands online Now USB cable companies have uneven product quality, and some companies have unstable product quality, especially during the peak sales season, when the quality instability is greater, sometimes better and worse, so we can take advantage of the current opportunity to improve the line.  Cable product quality. After the quality is improved, it is necessary to manage the brand.  The brand we are talking about is not a cable product name, but a product logo.  The brand is a whole system, which is the pleasure that the product name and logo can bring to the users, so that the buyers will like and trust the product name and logo.  When we do this, we can only lay the foundation for the establishment of a brand and enhance the added value of cable products, so as to enter the market → product → service → product → market such a virtuous circle.  Only then can products → market → users → products, use products to drive the market, and guide users to join another market sales link.  However, in fact, there are many cable companies. In this epidemic storm, the publicity and promotion of product brands are decreasing or not even being done. We often say that crisis is the presence of danger and opportunity.  In most eyes, it is a crisis; but in a small part, it is an opportunity.  Using differentiated marketing strategies and vigorously promoting the brand online will be the mainstay of the protracted battle.  If a small number of people are in the midst of such a crisis, and when other competitors do not do product promotion and promotion, they seize the opportunity and increase the promotion. The advertising effect is obvious and understandable.  Once the epidemic is over, the brand's popularity will definitely increase, and the added value of its products will also increase, which will increase sales and the loyalty of distributors.

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