Under the new normal, the status quo of the survival of lubricant companies is worrying

Looking at the domestic lubricant market in the first half of 2015, it is hard to be optimistic. The slowdown in domestic growth has dragged down the development of enterprises. Both the supply and demand have been deepening, and many companies have been experiencing difficulties and difficulties under heavy pressure.

1.Industrial companies are sluggish by industrial lubricant companies

The national economy is slowing, the real estate industry is sluggish, and there are excess capacity around the house's related industries, such as cement, steel (including steel for steelmaking), glass, building materials, furniture, etc. SMEs in these industries continue to face cruelty. Elimination. Trade-related (such as steel trade, coal trade) companies, supermarkets, and other businesses related to these industries will also be struggling. The collapse of industrial companies will mean that many companies that sell industrial lubricants are facing no market pains. At the same time, the arrears of 2014 will continue to be extended. The pressure from both sides has made most industrial lubricant companies miserable.

2. The devaluation of the renminbi impacts imported companies

The year 2015 is the year when the US dollar raises interest rates. Emerging economies will face pressure from capital outflows, deflation, etc. The foreign exchange market will be in a turbulent wave and commodities will also be faltering at low levels. For China, the renminbi has obvious depreciation pressure and is expected to depreciate from the US dollar by 3% to 5%. Those enterprises that have completely imported lubricants products are affected by this pressure and their pressure should not be underestimated.

3. It is difficult to parry some end-user customers

In 2015, oil prices will hardly return to the highest point in 2014. Low oil prices will kill many new energy companies that lack competitiveness. Lubricant companies are also deeply affected by this. The entry threshold for the lubricants industry has fallen even lower, especially the use of the mobile Internet, which has led to more lubricant brands having their own unique living space, more intense competition in the lubricants industry, and looting terminals becoming lubricated after 2015. The focus of the oil industry, if you do not have its own terminal, companies that do not have their own fan customers, those who rely on wholesale to make a lucrative business, I am afraid it is difficult to resist.

In the face of new requirements under the new normal, lubricant companies have taken measures to ensure both quality and survival under the rising cost of internal and external dual costs: I understand that some lubricant companies have chosen to increase investment in the previous period, upgrade and upgrade. The technological content of the industry balances the loss of external costs with the optimization of the internal structure; the other part of the company passes the cost by improving the product quality and establishing the high-end positioning of the brand, which is yet to be tested by the market.

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