With the development of urbanization in China, the establishment of smart grids is gradually starting. As an emerging industry, smart grids, characterized by unmanned intelligence and efficient operation, will be the future development trend of the power grid, and the industry will welcome new opportunities. As a major supporting industry in power grid construction, the wire and cable industry has also ushered in new opportunities with broader market prospects. How should Chinese cable companies enjoy this opportunity?As one of the main supporting industries for the establishment of China's national economy, the wire and cable industry is the second largest industry in the mechanical industry after the automotive industry. According to statistics, there are currently 4653 enterprises in China's wire and cable industry with an annual main operating expenditure of over 1 billion yuan, and 36 enterprises with an asset range of over 1 billion yuan. In the past 15 years, the average annual growth rate of the wire and cable industry has exceeded 15%. In the coming years, as China is in the early stage of industrialization, the development speed of the wire and cable industry in China will be higher than the development speed of the national economy, estimated to be over 10%, especially the average annual growth rate of power wires and cables can reach 15%.With the development of industrialization, the improvement of the foundation, and the progress of urbanization, the cable industry will become mature. There is a clear north-south polarization in the industry, and the industry concentration is improving. Among them, the top ten in the United States occupy 67% of the market share, the top six in Japan occupy 65% of the market share, and the top five in France occupy 90% of the market share. Although the concentration of the industry is low, resulting in the cable industry market being in a scattered market form, the wire and cable industry continues to maintain high growth, rapid progress in consumer efficiency, product upgrading and replacement deceleration, product structure becoming more reasonable, industry cost structure becoming increasingly diversified, and the marketization process clearly slowing down; The wire and cable manufacturing industry in particularly coastal and economically prosperous regions has distinct advantages, and regional differences have further expanded....

With the transformation and upgrading of the Chinese economy, China's wire and cable enterprises are also undergoing a series of transformations. Gradually transitioning from a single wire and cable manufacturer to a provider of comprehensive product technology solutions, the five driving factors that have had a significant impact in the rapid development process are as follows.1 Tension 1. The implementation of the "the Belt and Road" policy. The "the Belt and Road" strategy proposed in 2015 is a major strategic decision made by China's policy makers to actively respond to profound changes in the global situation and coordinate the domestic and international overall situation. It is a major "top-level design" related to China's reform and development, stability and prosperity in the future, and even the realization of the Chinese dream of the great rejuvenation of the Chinese nation. The proposal of the "the Belt and Road" strategy has undoubtedly boosted the whole infrastructure construction, and infrastructure connectivity is the priority area of this strategic construction, of which the cable industry has benefited greatly. This opens up a "dream building space" for China's wire and cable industry in the next 30 years.2 Tension 2: "Internet plus" During the 2015 NPC and CPPCC, after the government work report clearly proposed the "Internet plus" action plan, "Internet plus" was like a powerful hurricane, sweeping almost all walks of life overnight. With regard to the drive of the "Internet plus" policy, it is very popular in all industries. If we put the "Internet plus" into the wire and cable industry, the "Internet plus+cable" effectively combines engineering projects, cable suppliers and cable buyers, while broadening the sales channels, helping enterprises transform and upgrade. However, "Internet plus" is not simply a combination of the Internet and traditional industries, but a restructuring of elements, and a process of transforming the production mode, economic model and industrial structure of traditional industries through the Internet.3 Tension 3: "Industry 4.0" is an important part of "Internet plus". Internet technology has reduced the information asymmetry between production and marketing, and accelerated the mutual connection and feedback between them. Therefore, a consumer driven business model has emerged, and "Industry 4.0" is the key link to achieve this model. "Industry 4.0" represents the intelligent production of "Internet plus+manufacturing", breeds a large number of new business models, and can really realize the "C2B2C" business model.4 Pull 4: "Made in China 2025" and "Made in China 2025" are the national strategic plan to strengthen high-end manufacturing announced by the State Council on May 8, 2015, and the action program for the first decade of the three decade strategy to build China into a manufacturing power. It is a long-term strategic plan formulated with a focus on the overall trend of economic and social development and industrial transformation both domestically and internationally. It not only aims to promote the transformation, upgrading, and healthy and stable development of traditional manufacturing industries, but also to achieve high-end leapfrog development in response to the development of new technologies. The annual output value of trillions of yuan in China's wire and cable industry is in line with the image of a major manufacturing country in China, but only a few of the thousands of cable companies can compete with foreign giants. Lack of added value and brand awareness. Chinese cable companies should focus on their areas of expertise, create more and reduce counterfeiting, pursue quality, prevent counterfeiting, regard quality as the foundation of their business, and strengthen the branding operation of their products. Only in this way can we break free from the global image of Chinese products as low-end, low-quality, and low-priced, and promote a leap towards the high-end of global industrial value.5 Pull Five: 2016 is the beginning year of the 13th Five Year Plan. Looking ahead to 2017, there are both opportunities and challenges for the development of wires and cables in China. There are positive factors such as the implementation of new policies during the 13th Five Year Plan and the continuous expansion of industrial development space, as well as unfavorable factors such as sustained sluggish domestic and foreign demand and difficulties faced by enterprises exceeding expectations. However, overall opportunities outweigh challenges!To sum up, the wire and cable industry in China will show new development patterns and trends. "the Belt and Road", "Internet plus", "Made in China 2025", "Industry 4.0", "13th Five Year Plan", etc. will become new economic growth highlights of the wire and cable industry....

As is well known, the wire and cable industry is a "material heavy industry, light industry" industry. The cost of material procurement, labor salary, bank fees, and intermediate sales costs are all directly linked to the economic benefits of the enterprise, especially in the intermediate sales process. Through "Internet plus", the production enterprises and users can be directly connected, the middle zone can be eliminated, the middle link can be removed, and the process parties can be directly connected in the sales chain, which can significantly reduce the cost of sales expenses. Some experts pointed out that "if you want to innovate in the sales system, you must firmly grasp the 'Internet plus', use this low-cost tool, change the existing sales model, and no longer be kidnapped by big dealers and big salesmen". The traditional marketing model is no longer able to meet the long-term development needs of cable enterprises, and it is necessary to find a way out under the thinking of the Internet. In today's highly developed mobile internet technology, if the traditional cable industry still adheres to the traditional market-oriented marketing model, it is difficult to survive in the fierce competition.The combination of cable enterprises and e-commerce is not only a need for industry development, but also a mainstream trend for the future development of the industry. Since 2012, some large wire and cable companies have seized this trend for development, mainly using the "Taobao model".In the next 10 years, China's new energy industries such as wind energy, solar energy, and nuclear energy will be in an explosive growth stage. The installed capacity of wind power, solar energy, and biomass energy generation will reach 200 million kilowatts, 100 million kilowatts, and 30 million kilowatts respectively by 2020, significantly doubling or more than the targets of 100 million kilowatts, 21 million kilowatts, and 13 million kilowatts set in the 12th Five Year Plan.With the restart of nuclear power construction in China, the number of nuclear power units in operation in China will reach 58 million kilowatts and 30 million kilowatts under construction by 2020. With the rapid development of new energy in China, there is a huge demand for special cables such as wind power cables, photovoltaic cables, and nuclear power cables....