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The following article was published in our article directory on September 4, 2010.
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China solar water heater industry is very high profits

Article Category: Business

Author Name: Amanda xzh

Solar water heater industry with high profits has long been an open secret within the industry.

China Renewable Energy Society, Vice Chairman of Tu Meng fought to a reporter for example, "enterprises are-seeking, if not an industry profit margins, how come there are so many businesses want to." He told journalists, although the development of China's solar water heater is very short, but so far has been the world's largest solar thermal state.

A lot of information this reporter found that at present, a total of nearly ten thousand solar water heater manufacturers, and this figure is only the peak of solar water heater manufacturers have nearly the host 7000, not including the various parts of the manufacturer.

"This industry is very low barriers to entry, profit margins and large number of family-style workshop also took the opportunity to hand the influx of cheap they seek to seize the Nongmin psychological, from the market to buy parts to build up the sale." Rural Energy Industry Association Solar Thermal Utilization Committee Director Luo Zhentao told the China Times reporter, produced by simple assembly of the quality of serious safety problems, and no service at all. However, these products are cheap, easily become the first choice for farmers, but because of the lack of after-sale protection has become synonymous with trouble.

1 Zheng Xing farmers discovered that you want to buy solar water heater suitable hard. He told our reporter, and now many rural areas of the solar water heater brands, most of the brand names they have not seen before, are listening to the person selling, and certainly the first to consider the price, but bought it back after This often appears as a problem, and finally he simply stood no.

This is not the case. Li Jin said in the course of their research found that solar water heaters because the quality of farmers, price, service, amateurs, so a large number of rural areas face a hodge-winning products and inferior products do not know how to choose the time, so a number of low-cost poor performance of the products take advantage of.

The pain of the countryside

Why should production costs be published? Li Jin has his own ideas, he said, is aimed at public cost of the product bought by consumers to resolve the confusion and perplexity, so that they understand the quality of qualified solar water heaters a reasonable sales price range, so that farmers can really enjoy the countryside policy brought home appliances benefits.

But in an industry of anonymity seems to announce the cost may be quite upset. The source said since the beginning of 2008, home appliances countryside activities, did not inspire enthusiasm for solar water heater industry, more than 100 solar water heaters in the countryside of successful enterprises, apart from a few large enterprises, SMEs can really open up not many rural markets. "We all know that this is a large cake, but bite fixed."

Growing polarization between enterprises. Some low-cost brand name of solar water heaters in the countryside conquering a city, some to known high-end high performance solar water heater just give up the rural market.

Li Jin that is mainly because these water heaters pricing is too high, so that farmers can not afford. "Most solar water heaters to the countryside successful enterprises are still accustomed to the past extensive management and the pursuit of high profits, which makes the high price of solar water heaters, resulting in no-name products can take advantage of, to deceive hurt farmers." He said.

However, a well-known in the solar water heater manufacturers have denied Lee into view. "Before we give up the rural market in some rural areas the main water quality is bad, Women's products have not developed accordingly, to the disadvantage of both maintenance and after sales, it would affect the entire industry." Company sources, reporter's interview.

The person requested anonymity told this reporter privately, is now the most difficult days in the middle of the business, the brand is very difficult to effect than large enterprises, has no match in price out of the no-name products from the workshops.

"No matter what the reasons for Lee out of the public cost of the product, the measure itself is worthy of recognition. Rejection of profits, maintain proper and reasonable profit, will benefit the industry's long-term development."

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