Market Analysis of China's Valve Industry

1. Diversified market structure, prominent proportion of service packaging

(1) Valve raw material and service manufacturers mainly provide upstream products and services, including original manufacturers of products and services, as well as various raw material manufacturers.

(2) Valve service and service integrator, responsible for intermediate service integration, mainly for the reprocessing of upstream services and the re valve of upstream services.

(3) Valve design planner, responsible for product and service design, primarily providing design and planning for the entire business process.

(4) Valve industry product and service agency, industry agency mainly includes the agency of services provided by upstream industries.

(5) The product and service distributors and consumers in the valve industry, namely industry distributors and consumers, mainly include industry distributors and consumers of products and services.

In the market structure of service types in the Chinese valve industry, service packaging ranks first with a prominent proportion of 38.4%; Raw material processing ranks second, accounting for 25.3%; Product research and development ranks third, accounting for 18.2%, while installation and construction ranks fourth, accounting for 11%.

Figure 5 Analysis of Market Structure Proportion in the Valve Industry

2. The industry status is gradually improving, and its influence is prominent

The position of the valve industry is reflected in three aspects: the industry's output value, the proportion of labor force in the total industrial output value, fiscal revenue, and total employment; The current situation and future impact of the industry on the overall socio-economic and other industry development The industry has the ability to compete and innovate in the international market.

The proportion of the valve industry in the total fiscal revenue and employment is 1%, the impact of the valve industry on the social economy and other industries is 3%, and the competition and innovation capabilities of the valve industry account for 9%.

3. Industry scale increased by 18.6% year-on-year

The market size of the valve industry is expected to reach 580 billion yuan in 2020, with a year-on-year growth of 18.6%. Due to the short-term difficulty in achieving a balance between domestic and foreign supply and demand, the valve industry has a strong market demand. "Internet plus" is applied in the field of valves, bringing new development space for valves. On this basis, the competition between traditional enterprises and Internet platforms is fierce. Enterprises can improve the market competition rate by improving user experience and efficiency, providing new growth space for the valve industry.

4. The industry has a large coverage population and a high proportion of services and service users

The valve industry has a large coverage population, a high proportion of services and service users, a huge market size, scarce market sales, a surge in service usage, and an exceptionally high compound growth rate. The market size and demand are very large. The service customer base is 111 million, the market size is 50 billion, the usage analysis is 6 million, and the compound annual growth rate is 130%.

5. The production and service situation is different from before

Introduction to valve service production status, services mainly include user service software and hardware services, service quantity, and demand. Introduction to valve service production issues, the service mainly includes pain points in the service production process.

6. Market strategy: Chain direct sales and channel sales model

Innovative marketing, innovative service design, and advocacy of new concepts; Consumer alliance marketing, building industry consumer circles, and forming consumer alliances; Green marketing emphasizes environmental protection, low-carbon, and pollution-free; Integrated marketing, integrated valve market services, packaged marketing; Chain operation marketing adopts chain direct sales and channel sales models.

7. The price trend follows the general industry service trend law

Price fluctuations in the initial stage; Affected by market conditions and supply-demand relationships; After the stability of future technology and market, the service market prices in the valve industry tend to stabilize; Through research and analysis, the service price trend of the valve industry follows the general industry service trend law, consisting of the industry's explosive period, fluctuating period, and stable period.