Three Deadly Combat Tactics

‌1. Price War: A Double-Edged Sword‌

As oversupply intensifies, price slashing has become the default strategy. Over the past three years, average product prices have declined 5%-8% annually. Smaller players, desperate for market share, now sell below cost:

• A typical small screw-type air compressor previously priced at ~20,000 yuan now sells for ≤15,000 yuan

• Profit margins for basic models have collapsed to ≤8%

While temporarily attracting price-sensitive clients, this race to the bottom has devastated R&D budgets (now averaging <3% of revenue industry-wide) and crippled after-sales services. Ultimately, it threatens the sector's long-term innovation capacity.

‌2. Deceptive Marketing: Innovation Theater‌

Facing product homogenization, some manufacturers resort to:

• Exaggerating energy savings (claimed 30%+ efficiency gains vs. actual 10%-15% verified savings)

• Fabricating "breakthrough technologies" (e.g., phantom "AI-optimized compression algorithms")

• Misleading certifications (counterfeit energy efficiency labels)

These practices not mislead buyers but erode trust across the industrial supply chain.

‌3. Service Warfare & Corporate Espionage‌

Large enterprises leverage their resources to:

• Build nationwide service networks with 24-hour response guarantees

• Offer extended 5-year warranties (vs. industry-standard 2 years)

Smaller competitors retaliate through:

• Smear campaigns against rivals' maintenance quality

• Poaching technical teams (recent court cases reveal 120% salary premium offers)

• Industrial espionage (32% of manufacturers report IP theft incidents since 2023)