Lead-acid battery utilizes lead electrodes and sulphuric acid as electrolyte to store electrical energy, broadly used in many fields consisting of automobile, mobile, communication, transportation, new energy and electricity, and so forth.
Global Market Production of Lead-acid Industry
China among the global countries is positioned as a key player with regards to the lead-acid battery capacity. It makes up roughly 45% of the total capacity volume, followed by America and Japan with 32% and 13% output capacity respectively. All across the world the leading lead-acid behemoths such as EXIDE, Sonnenschein, YUASA, C&D Technologies, Panasonic, etc., are playing big roles.
Lead-acid battery with largest capacity accounts for 50% of the production capacity of the whole battery chain and 70% of the rechargeable battery sector. Based on the product system of lead-acid battery, SLI(Starting Lighting Ignition) battery contributes to 48% with the largest market shares while power lead-acid battery and backup / storage battery represent approximately 28% and 15% accordingly.
Lead-acid battery market on the whole is at mature stage in view of its industrial competitors, growth rate and homogeneity. Instead, the competition among enterprises becomes more and more intense.
Multinational Corporation Eyes on China
The vast market potential and low labor cost always come to the key incentives to allure multinational corporations. Over these years the market competition has been intensified greatly due to the higher cost of raw materials and the increase of multinational corporations foraying into Chinese market.
Among all the multinational corporations, about 90% of them have intended to add the investment, penetrating into the upstream, downstream of the whole industry chain. Nonetheless, a few of issues need to be addressed for a full play of economy and synergistic effect.
How to Conduct Global Reach
1.Business Expansion by Merge and Reorganization
For multinational corporations, merge and reorganization are the priorities for them to take a market share of Chinas lead-acid battery industry. For instance, Panasonic in Japan has teamed up with Shenyang DongBei Storage Battery Co.,Ltd to found anasonic Storage Battery(Shenyang) Co.,Ltd in China, for business expansion. It is the foreign capitalism that foster the market competition and technology level.
2.Investment on Technology Research and Development
Multinational corporations in China mostly highlight the research and development of technology. In lead-acid industry, the multinational corporations have invested increasingly and taken the strategy of megamerger to gain a strong foothold in China.
Local management could help market your business in a convenient but effective supply chain no matter it is on cost reduction or service improvement. Additionally, the advanced management idea to optimize the management mode benefits the business efficiency as well as local market penetration.
4.Control Core Technology
Market competition literally refers to the fight of modern technology and technology innovation. Multinational corporations during the global reach shall focus on the core technology and product standard, and other significant factors. Continuous investment on the research and development are as important as the innovative capability of technology, development of new environmental friendly products. The monopoly of core technology determines the high profit.
To beef up the integration of lithium battery industries all over the world, Asia Guangzhou Battery Sourcing Fair 2018 (GBF2018) will again bring the leading enterprises of this field together to have deep exchanges and communications.
For more info, please visit http://www.battery-expo.com/ or email Aileen Chen via Aileen2017@yeah.net or call 86-20-29806525.