The cement industry is experiencing an unprecedented test, with many challenges coming one after another, such as weak market demand, overcapacity and sustained low prices. In such a market environment, the competition among enterprises is becoming more and more fierce. In order to maintain or expand market share, some enterprises do not hesitate to adopt the strategy of dumping at low prices, which undoubtedly brings greater pressure to the whole industry, but also quietly changes the competition pattern within the industry.
In the past, the focus of the cement industry was mostly between manufacturers, but now, cement dealers are gradually becoming the key players in this industry game. "Bigger distributors are now beginning to grasp cement enterprises," said a sales manager of a cement enterprise helplessly, who was previously in a relatively weak position in the industrial chain, because of the sudden change in the market environment, began to have unprecedented bargaining power.
"The current situation is that once there is a trend of price increase, as long as any cement enterprise fails to effectively implement the price increase decision, it will immediately become the basis for dealers to ask other manufacturers to reconsider and lower the price." The head of the cement company stressed that large distributors began to use their extensive sales network and sensitivity to the market to exert pressure on cement companies to adjust prices to maintain their profit margins.
At present, the plight of the cement industry stems from the interweaving of various pressures, including the fierce market competition among enterprises in the industry, as well as the increasing bargaining power of upstream and downstream partners such as distributors and their impact on market strategies. In this complex situation, the challenges faced by the cement industry have intensified, and it has become more difficult and urgent to explore and maintain a long-term and stable development path.
