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Internet + Era: Which way should industrial electrical industry go?
Released on: 2015-06-25 Content Sources: Jinguan Electric
In recent years, with the rapid development of Internet technology and related emerging business patterns, traditional manufacturing industries are under great pressure. Manufacturing enterprises began to think about how to achieve breakthrough development by taking advantage of the Internet. Which way should electrical enterprises go?

Industrial electrical products include relays, switches, inverters and other industrial products required for industrial production, boasting a huge market in the world.


In China, industrial electrical industry, in addition to overcapacity, also faced challenges in the Internet era in traditional procurement and sales modes. In the traditional procurement mode of industrial electrical products, generally the enterprise sends a special person to purchase or relies on a procurement company. This process often requires complex inquiries and telephone inquiries, and is time-consuming and laborious. With the changing times, a new generation of buyers and dealers born after the "1980s" and "1990s" want to take a convenient way and the original offline procurement and payment have been far from meeting their needs.


Many industry experts and my friends in the electrical industry chain share the same feeling with me. In the Internet era, how should China’s Industrial Electrical industry realize transformation and upgrading?
In 2011, Germany first proposed the "Industrial 4.0" initiative which has got response from many industrial electrical giants including Siemens. Moreover, the "industrial Internet" concept known as the US version of "Industrial 4.0" was first proposed by the General Electric. Facing a new round of transformation and upgrading opportunities, will China's electrical industry catch up with international standards or continue to widen the gap? The answer lies in the effective application of Internet technology.
Electrical enterprises should use technologies such as the Internet and big data to guide and aid the production, procurement, sales, after-sales and other links of electrical industry to achieve intelligent manufacturing, order placing and procurement. Meanwhile, these technologies also provide specific implementation modes for the transformation and upgrading of the electrical industry.
In the discussion of Internet transformation of industrial electrical industry, the following fundamental issues must be mentioned: B2C, B2B and B2D.
We have seen many enterprises having achieved great success in 2C business. In the greater electrical field including lighting, switches and sockets, currently domestic and foreign brands including ABB, Schneider, Chint, Delixi and Hongyan have written their own success stories on platforms such as Taobao, Tmall and Jingdong.
B2B procurement model currently includes the electrical distribution network of Zhongyeda and, with annual sales of about a few million to 40 million yuan or so. These sales networks meet the demand of maintenance-oriented business customers, but can not meet the demand of cabinet customers which are the major purchase group of industrial electrical appliances.
Earlier this month, word began trickling out that Zhongyada is planing on spending CNY 0.21 billion on the acquisition of In this acquisition, I don’t think what Zhongyeda want is the B2B sales, but numerous potential enterprise members, individual members and the big data behind these members.
B2D (Business-to-Distributors) model creates a professional industrial electrical procurement platform for suppliers and buyers. B2D model completely eliminates the intermediate link, helping manufacturers and distributors establish an "efficient, direct trading relationship." 

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