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Steel trading business transformation to a double challenge to the iron and stee

The steel trade and business owners transformation to liquor! Recently, the transformation of the steel trade enterprise become a hot topic in the industry. Steel trade companies have chosen to cross-border restructuring, they give up the steel trade, exit the Steel City, another way; and steel trade enterprise around the steel trade and the main industry in transition, to enhance the degree of concentration of the steel trade and industry. Steel trading business, these two very different direction of the transformation, mapping the current severe market conditions, but also has a double challenge to the iron and steel enterprises.

Steel trading business transformation will result in two diametrically opposite effect

China Metallurgical News "reporter has learned, in Shanghai, the steel market to move in the steel trade is gradually reduced. Some steel trade enterprise transformation to open the hotel, to sell wine, engage in real estate, futures speculation, involving the stock market, and some in the financial industry, culture and media industries. According to incomplete statistics, only the steering as much as financial, logistics and construction of the park there are hundreds of steel trade enterprise in Shanghai. The rest of the steel trade enterprise did not leave the steel trade and industry, but the scale of operation is shrinking, the corporate officers are also dropped. A steel trade company chairman, said in an interview with the China Metallurgical News "reporter, their company's employees cut from the original 70 people to 20 people, steel processing sites closed processing equipment is also sold. Accompanying steel trade companies to reduce orders to steel mills, and some will be ordering from 15,000 tons per month to 20,000 tons, reduced to 4000 tons to 5000 tons, and some steel trade is not even from the steel purchase; even some steel trade enterprise procurement of steel, also are used to banks as security for loans, and then loan funds to real estate speculation, stocks, futures speculation, steel trade enterprise "shell" is serious.

The steel trade enterprise is an important part of the steel industry chain. Steel production of steel, at least 60% to 70% by the circulation of the steel trade enterprise sales to the end user. Its existence and functioning of iron and steel enterprises, has the following advantageous effects: first, to alleviate the steel shortage of funds contradiction. To steel mills, steel trade enterprise order is usually the first payment after getting goods, and some steel mills to receive a certain amount of "deposits" to the steel trading business, at least hundreds of thousands, as many millions of these funds deposited on steel mills, steel mills to reduce the financial pressure. The second is to open up sales channels for the steel mills. At present, enterprises in the steel trade of nearly 20 million, the Shanghai area alone, there are over 7,000 enterprises engaged in the steel service industry, above-scale enterprises have more than 800. The steel mills of the direct sales function is not enough to replace the role of mid-flow of the steel trading business. Third, steel mill scheduling, to market ability. Steel trade orders to the steel mills, when before the end to determine the order contract to steel mills, steel mills signed contract after next month's sales are to master, easy to rationalize production and to achieve to market ability.

Steel trade enterprise cross-border restructuring and focus on the phenomenon of "shell" show that the steel is undoubtedly a great loss. In fact, the impacts and losses are already visible. Today, many steel mills facing difficult sales and rising inventories, shortage of funds and other pressures, and the steel trade enterprise reduced or not directly related to the steel mill order. Insiders pointed out that many steel mills have lowered prices, so the price close to the market, precisely in order to attract the steel trade orders to the steel mills, steel agents.

At the same time, some steel trade enterprise around the steel trade and industry in transition, to enhance the degree of concentration of the steel trade and industry, to change casual, weak, small, chaotic status quo, the impact and challenges to the iron and steel enterprises should not be ignored. For example, many of the steel trade enterprise alliance to form a steel trade groups play the advantage of the funds, resources, channels, and steel mills compete for the right to speak; Again, part of the steel trade enterprise in the marketing strategy and tactics, sales methods and concepts on innovation, the formation of a wide range of steel logistics development, including trade logistics model, logistics and financial model, trade + distribution processing mode, the new steel logistics park mode, e-commerce + logistics mode. These years, the steel trade in the direction of development and business model, the reform of property rights and incentives, and in the format and mode of operation and other aspects have formed a lot of useful accumulation and practice. The steel trade enterprises are gradually shifting from steel traders to the flow of service providers to extend the industrial chain to the processing and distribution, customization, starting from the end-user demand.

In this regard, the steel must be fully recognized that today's steel trade enterprise is not in the eighties and nineties of the last century "steel dealers". As part of the successful transformation of the steel trade enterprise, may be the iron and steel enterprises have distinct advantages and disadvantages of the two effects. If the steel trade enterprise with steel to create synergy, complementary advantages, and have a tremendous positive effect; the contrary, will increase competition and bring great impact to the steel mills, to become the new challenge.

Iron and steel enterprises to actively take effective measures to deal with

Excess supply and insufficient demand in a "buyer's market" environment, in the face of the lack of role of the middle of the steel trading business and the dual challenges of competition in the steel trade intensified, iron and steel enterprises must face up to reality, take measures, innovative.

At present, many steel mills have action taken effective response initiatives, practices and experience can be summed up in the following areas:

First, improve the working relationship with the steel trade enterprise. The right decisions under the guidance of a lot of iron and steel enterprises starting from the "win-win", and steel trade enterprise to form a "chain" to play the business advantages of the steel trade enterprise, with a broad sales channels of the steel trading business, to encourage the steel trade enterprise order loyal partnership and the expansion of steel sales channels, to change the current lack of orders, product backlog, high inventory, lack of funds, inefficient situation.

Second, innovative business philosophy. Many steel enterprises to accelerate the construction of management innovation to enhance the focus on sales targets, vigorously implement management innovation, and actively implement risk management, effective operational risks; detailed study of advanced iron and steel enterprises marketing strategy and marketing strategies of competitors, develop targeted sales measures and improve the marketing level.

Third, to accelerate the business models and institutional mechanisms. Demand for discovery, target customers, iron and steel enterprises to provide different solutions for different customer groups; constantly improve the business model, channel model and organization model, show tree brand, optimize channels, customer service.

Fourth, scientific analysis of market trends. Some steel enterprises have an accurate grasp of market positioning, keen to capture market opportunities, optimizing product mix, sales program management, market allocation of resources, to increase efficient products, the High Commissioner for high-priced products, such as sales.

Fifth, strengthen and direct the use of steel users contact. Some steel enterprises to actively explore the market of key projects to further enhance the direct supply proportion of direct sales, a comprehensive long-term implementation of trade-led industrial upgrading in order to market demand; around efficiency goals, and make unremitting efforts to cultivating high-end industry, the development of high-end customers, improve product structure, highlighting the structural optimization, to enhance Chuangxiao level and core competitiveness.

Sixth, develop high-end market. Some steel enterprises actively studying customer demand, tracking market changes, and tap the large projects, the market potential of large projects, and actively develop the high-end market, the strengthening of key projects tracking, pioneering efforts in the field of pipelines, bridges, marine engineering, and high-rise building steel to achieve breakthrough; deepen the cooperation with the coal industry, shipbuilding industry, improve the grade E steel plate, the proportion of high-strength steel plate; actively creating a new marketing system, such as regional branch + Processing and Distribution Center, the processing line was built to the customer doorstep, or customer + small and medium-sized high-end direct supply households, clinging to the "watermelon" pick up "golden sesame.

Seventh, to strengthen the marketing team building. Some steel prices starting point, high standard, high efficiency, and strict requirements, pragmatic as the overarching goal, the establishment of an "Iron Army" marketing team to implement Shouwenfuze system, strictly implement the complex life of the system, to strengthen workers' professional training, improve marketing and customer service capabilities; enhance the sense of responsibility of the sales staff, a sense of mission and urgency, and strengthen the building of a clean government and improve the system of work, put an end to corruption-free behavior; deepen cultural import, and explore the cultural construction of marketing to create a harmonious sales atmosphere; strive to do is not lost inch of the target market, do not give up a point with customers of the value of the interests not to harm the heart of cooperation with customers.

Eighth, strengthening sales and R & D of new products. Some steel enterprises committed to the integration of production and marketing research platform to develop new product public relations programs, and increase efforts to open up markets for new products, industry representative products and customers as a breakthrough, expand product awareness, increase volume, high technology, Product-effective new product sales.


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