Valve is Watts Industrial Group, the U.S. global strategy, an important step in the adjustment. Watts 10 years ago, industrial investment in China to form joint venture in China, the main purpose is to seek a low-cost, high-quality international market suppliers. Now, this orientation has undergone a fundamental change, will bear the brunt of water technology product manufacturing in China to build aircraft carriers, to become the leader of China's valve market.
A rapidly expanding and the great potential of China valve market, Watts Industrial Group for the United States, the temptation is irresistible.
As Mr. Tara said, China's valve market, no less than 10 billion yuan in total demand, the huge market for any of the internationally renowned manufacturer of valves for all dream of. In accordance with the scientific concept of development, China to ensure coordinated economic development and improve the future living needs of the people, must be infrastructure such as water, electricity, gas, heat, etc. on the top priority, this is precisely the valve useless . That is, rather than as a replacement model is still new type of China valve market, the demand potential and the explosive force would be staggering.
To prove their inference, Mr. Tara cite two examples. The first is North Water Transfer Project in China, only the outskirts of Beijing to the city within 70 km of length, for the amount of valve procurement as high as tens of millions, then the entire demand of the South project on the valve can be would like to make the right. Secondly, to solve the power shortage problem, the scale of hydropower projects to be launched not only the Chinese government's top priority, it will be a long-term task, not to mention there are natural gas, the old industrial bases, pipe network construction, residential projects, sewage treatment, irrigation and many other items.
China valve market has so much charm, has been pleased enough to attract foreign investors, but the past two years, users of the world famous Chinese valve's soft spot, but also the U.S.
more than a few Watts Industrial Group sub-investment impulse. Tara told the reporter, thinning the Chinese market on the demand valve, like a pyramid. Spire to all imported products, fine quality, high prices, a small amount of a monopoly on high-end users. The central tower is a wholly foreign owned, joint venture sites, corresponding to the required valve quality, affordable high-end users. As for the domestic enterprises are basically wandering in the bottom of the column in order to fight the number of price-cutting way to compete with the low-end users.
With the growing Chinese consumers rational purchase behavior, brand and quality of more and more attention, solely owned, joint venture's products are increasingly popular. Meanwhile, the sole proprietorship, joint venture, has been through the use of higher quality and lower cost way to erode the market share of imported products.
Second reason: Select into the time involved in integration
Valve business in China, "the little door small family" and valve products in China, "quite a mixed bag," Watts Industrial Group to the American incursions into the Chinese market, the integration creates a golden opportunity.
Mr. Tara said, because the threshold is too low to enter the valve industry, access mechanism without sound, 10 years, mushrooming of Chinese soil derived from more than 3,000 valve manufacturer. Throughout the more than 3,000 valve manufacturer with annual sales income of 500 million, less than 500, with sales of over billion, just more than a dozen companies. In accordance with international market standards, a standard, mature market, industry 20% of the company should have 80% market share, the top 3 should have control over 50% market share in the strength of the valve industry in China 10 Name of enterprises accounted only for the domestic market, 8% ~ 9%. In other words, so much of China valve market has still not real brand.
No world-class brand, not heavyweight corporate China valve market, inevitably lead to China's valve market regional segmentation and disorderly competition. Mr. Tara that we want to solve this problem, China's valve industry must be integrated onto the road as soon as possible by creating a leader in the survival of the fittest, and the involvement of foreign brand-name companies can accelerate the process.