In recent years, more and more cable companies have found that the market competition has shifted from price war to brand war. To achieve sustainable growth, we should not only rely on products and sales personnel, but also establish a brand-oriented growth model. Clear market insight is crucial for cable enterprises to build brands. The following are four insights of Otis in the cable industry for reference of power line cable enterprises. 1. The growth of the wire and cable market has benefited from the national long-term economic development plan, the promotion of new infrastructure construction, the construction of modern cities, the construction of the national smart grid, the manufacturing of new energy vehicles and the construction of rail transit, etc. The wire and cable industry is constantly optimizing and upgrading, and is developing steadily. In 2020, the sales revenue of China's wire and cable industry reached 1.57 trillion yuan, up 12.14% year on year. It is estimated that China's wire and cable sales revenue will reach 1.65 trillion yuan in 2021, with a year-on-year increase of 5.10%. In 2022, China's wire and cable sales revenue will further reach 1.74 trillion yuan, with a year-on-year increase of 5.45%.

At the same time, the total planned investment of the State Grid and China Southern Power Grid during the "14th Five-Year Plan" will exceed 2.9 trillion yuan, higher than the total investment of the national grid during the "13th Five-Year Plan" period of 2.57 trillion yuan and the "12th Five-Year Plan" period of 2 trillion yuan. The whole wire and cable industry is growing. 2. The entry threshold of the low-end market of the wire and cable industry with low market concentration and huge branding space is low. In 2020, there will be more than 4000 companies above designated size in the domestic wire and cable industry, most of which are small and medium-sized enterprises. In 2020, the national sales revenue of wires and cables will be 1.07 trillion yuan. The operating income concentration of CR3 enterprises in China's wire and cable industry is 5.97%, that of CR5 enterprises is 8.04%, and that of CR10 enterprises is 11.11%.

The market concentration of wire and cable industry is very low, and the market is relatively scattered. The whole industry began to shift from the competition of inferior products and low price to the competition of quality, service and brand, and the cable enterprises began to develop towards specialization. Otis believes that with the upgrading of the competition, on the one hand, the scale and cost advantages of leading enterprises are significantly ahead of most small and medium-sized enterprises, on the other hand, more and more customers, especially large and medium-sized customers, prefer brand-based suppliers, and the brand space is huge. 3. Attention of emerging special cable market With the development of national smart grid, aerospace, marine engineering and other industries, ordinary cables often cannot meet the high requirements of such industries. The demand for special cables will continue to rise.

In the face of the emerging special cable market in short supply, most enterprises are eager to try. On the other hand, there are more small and medium-sized enterprises in the domestic special cable industry, and the level of independent research and development and innovation is relatively low. In terms of technology research and development, large and medium-sized cable enterprises often have enough budget to develop special cables for various industries. Most small and medium-sized enterprises are relatively deficient in this area. It is also worth considering that SMEs can establish industry-leading advantages by focusing on specific industries and through centralized innovation. At present: there are no enterprises with absolute monopoly positioning in the special cable industry, no matter large or small enterprises, in order to establish competitive advantages in the field of special cable business, first of all, we need to get rid of the "workshop" production and low-price bid-winning service mode, and win more customers' favor by strengthening research and development and innovation.