English
简体中文
French
English
Portuguese
Russian
Spanish
1. Market Saturation
By 2010, the industry’s growth potential attracted countless entrants. In the Yangtze River Delta alone, hundreds of manufacturers emerged, saturating the market and sparking cutthroat competition.
2. Price Wars & Margin Squeeze
To gain market share, companies slashed prices. A mid-sized screw compressor previously priced at CNY 100,000 dropped to CNY 60,000–70,000. Meanwhile, rising raw material and labor costs eroded profits. For instance, a Guangdong-based mid-sized manufacturer saw its profit margin plummet from 30% in 2005 to 10% by 2015, with many smaller players facing losses.
3. Technological Homogenization
Rapid technology diffusion led to product commoditization. Most firms lacked R&D capabilities, resorting to imitation. With minimal differentiation in performance or quality, premium pricing became unsustainable.
