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Mold Industry: How To Share Two Trillion Big Market?
Apr 25, 2018

              At present, with 30 years of reform and opening up efforts, China has become the world’s largest industrial country and the most important export of industrial products, and it is also the world’s second largest economy. The rise of China is the most important change in the world economy since the 1920s. However, as a newly emerging industrialized country, China’s industrial scale is large and its capabilities are strong, but there are still many constraints. The mold industry is one of the major ones. 

            Since the end of the last century, with the industrial "hollowing" policy of developed countries, its mold manufacturing center has shifted to developing countries represented by China. At the same time, with the expansion of the domestic manufacturing industry, the mold manufacturing industry as a foundation has also grown rapidly. However, with the growth of the domestic mold industry over the past two decades, the homogeneity of the industry is on schedule, and the competition has gradually deteriorated.

           As molds play an important role in the manufacturing industry, mold manufacturing has always been valued by developed countries. In fact, the design and manufacture of molds is already a very important area of manufacturing. According to reports, the proportion of high-level molds represented by large-scale, sophisticated, complex, long-life molds in China has reached more than 35%. With the development of the mold industry, the demand for precision and heavy equipment has also grown accordingly.            At present, the Yangtze River Delta and the Pearl River Delta have developed into two major domestic mold manufacturing bases and sales and distribution centers. However, due to the lack of overall industrial planning, the competition in the two major regions has increased. Among them, the number, income and profit of foreign-funded enterprises reached 35.98%, 47.19% and 56.05%, respectively, which occupies an extremely important position in the competition of China's mold manufacturing industry. But overall, the current domestic mold industry is still concentrated in the low-end areas, the number of high-end products is relatively small, and lack of competitiveness.

           According to statistics, in the past few years, more than half of the world's molds are manufactured by countries in Europe and America, and the proportion of Asian countries such as China only accounts for 1%. Fortunately, this pattern will gradually be broken, and more and more domestic automotive mold companies are beginning to enter the front end of the industry. With the help of various advantages, we have not lost sight of the achievements in the international mold market and the domestic high-end abrasive industry.           However, at the same time of affirming the achievements, the overall domestic mold industry still has problems such as information asymmetry and difficulties in technology transfer.           In the domestic mold market so far, its main business is still based on the development of the offline market. This business model has supported more than 30,000 mold manufacturing companies nationwide, resulting in a super “big cake” with a total size of RMB 2 trillion (as of 2015), but the supply and demand mismatch, technical difficulties, and information Asymmetry is still a major problem in the development of the traditional mold industry.

           However, with the advent of the "Internet Plus" concept and the launch of the "Made in China 2025" plan, it is also the birth of new concepts and new platforms that can solve the above problems. At present, the integration of network technologies and trading platforms, including Feitian Zhongzhi's manufacturing technology service platform, solves the problem of information asymmetry among enterprises in the mold industry, realizes low-cost technology transfer through communication technology requirements, and through other fields of enterprises or institutions. Solving technical problems, etc., provide new channels. With the integration of the industry and the Internet, mold products can be effectively promoted, and the product backlog phenomenon is improved. Many traditional industries with problems in development have successfully achieved industrial transformation with the help of the Internet. 

            The hardship of the mold industry requires joint efforts.