With international industrial gradient transfer, the manufacturing industry has shifted to developing countries such as China, India. Therefore, foreign enterprises pose a little potential threat to domestic metal pipe fittings
Metal pipe fitting products have the characteristics of strong specificity, high additional value, and wide application, getting involved in every field of the national economy, but mainly supplied for the petrochemical, natural gas, electric power, shipping and other industries. According to prospective GGII's demand for metal pipe fittings,it can be projected that by 2015, the amount invested of China oil and gas transmission's demand size for metal pipe fittings will have reached 2.5 billion RMB; 5 billion RMB for the petroleum and chemical industry; 6.64 billion RMB for the thermal power industry ; 2.093 billion RMB for the nuclear power industry. The total market demand will be more than 16 billion RMB.
According to Second Five-Year plan in our country, the downstream industry of pipe fitting industry will still maintain strong vigor in demand and have broad prospects for the industrial development during the "Twelfth Five-Year Plan" .
From the degree of competition of metal pipe fittings industry, there is a intense competition in the low-end small ordinary pipe fittings market, and a shortage of supply in the market of high-end products with large diameter, composite materials, high performance and others. The industry presents competitive situation that there is a disorder competition in the low-end market and an imperfect competition in the high-end market . At present, the total average annual consumption of domestic high-end metal pipe fittings reaches more than 40 billion RMB. South Heavy Industries account for more than 1% the total average annual consumption in domestic metal pipe fittings,and its market share comes out top.
It it may be said that there is a wide variety and a fierce competition in metal pipe fittings market . Whether the high-end,middlle-end or low-end, each of the market level all has several or even dozens of brand competition,and the different grades of products are in competition with each other.The serious asymmetric between product information and the market is gave rise to for serious homogenization appearing in the low-end product market and the fact that consumers do not know too much about product knowledge. only choose from the price in general , and rarely name to buy a certain brand. Moulding brand image neglected by Enterprises leads the brand to be out of line with the consumer .