Internet opportunities in the electrical industrial products

The proportion of enterprises using the Internet to innovate operations is continuously rising.

"The electrical industry has a market capacity of over 2 trillion yuan, and the vast majority of manufacturing enterprises will inevitably face reshuffling in this wave of the Internet. The Internet is both a crisis for pure industrial sectors and a greater opportunity." Wu Bangjiang, chairman of Jiangsu Guobian Electric Co., Ltd. (referred to as "Guobian Electric"), said in an interview with the China Electric Power News that the first ten years of the Internet's development in China provided a leap opportunity for all categories of consumer goods. Starting from now, the next five years present a huge opportunity for industrial products. Enterprises can only see the sun tomorrow morning by embracing the Internet and serving users with new thinking and new methods.

The thinking of the Internet is not only in the consumer goods industry but is also gradually shifting to the industrial goods sector. The biggest difference between the sales of industrial products and consumer products is that industrial products, in addition to the product price itself, are accompanied by professional services, which are supported by a large offline service team. For example, installation, optimization, guidance, and After-sale Service are some of the reasons why industrial products cannot simply open up the market through e-commerce. Electric Tiger Network is the window for Guobian Electric's products and services, supported by years of industry experience and a sales, technical, After-sale Service, and engineering team of nearly hundreds of people across the country. Guobian Electric's goal is to build "Electric Tiger Network" into the largest platform for electrical equipment products and services in the industry.

One-stop electrical integration solutions save users more than 10% in costs.

"The circulation of industrial products involves many professional links, and information regarding product technology, Price, and services has always been in a state of high asymmetry and opacity. Additionally, there is room for rent-seeking in various links, which often leads to incredible prices when products reach users." Wu Bangjiang said in an interview with the China Electric Power News that narrowing the asymmetry of information regarding product technology, Price, and services is the biggest highlight of Electric Tiger Network under Guobian Electric. For example, a "dry transformer" used in a distribution room, the same product from the same manufacturer and model can often have a price difference of up to 100% when sold to different users.

In fact, during the construction process of engineering projects, various "one-stop" specialized supply solutions for distribution electrical equipment have significant characteristics such as effectively reducing procurement costs, improving procurement efficiency, and providing efficient After-sale Service. Guobian Electric's one-stop electrical product integration solution has established stable partnerships with over 100 well-known domestic and foreign electrical manufacturers through product investment, strategic cooperation, and agency sales, forming an unparalleled product integration capability in the industry. The equipment solutions configured by top-notch design and research teams can save users 10% to 30% in costs.

Numbers are dull and uninteresting, but they are the most persuasive. According to Wu Bangjiang, the "Chongqing International Financial Center" project, the tallest building in Chongqing and the seventh tallest in the world, is executing a total contract amount of 310 million, which is expected to be 11% lower than the owner's self-procurement price; the Nanjing Phoenix Baidu Data Center project has a contract cost of 11 million (transformers, complete electrical equipment, cables, etc.), saving the owner about 1.6 million.

"There is no need to go through a cumbersome bidding evaluation process; nor is it necessary to recruit and form a professional electrical technology and procurement team for a phased construction project. One can efficiently handle the procurement and installation of electrical equipment and After-sale Service for a project just like buying a bottle of mineral water." Wu Bangjiang told the China Electric Power News that providing unified After-sale Service and technical consultation for integrated service products avoids the previous phenomenon of users procuring from multiple manufacturers and passing the buck on After-sale Service. Currently, Guobian Electric's marketing and service teams across various branches exceed 1,000 people, capable of responding promptly to users' service needs.

In the construction of engineering projects, owners will subcontract for construction, electricity use, installation, and procurement. Guobian Electric has always been committed to the service of electrical equipment. In numerous case studies, it has found that a large proportion of users encounter issues such as unstable electricity use during project implementation, requiring coordination to resolve problems that arise at any time.

The fundamental reason is that many project owners are unfamiliar with the electricity use process, and the separate procurement of electrical equipment leads to project delays and various disputes for the project owners. As a cost-performance expert in electrical equipment, Guobian Electric has launched a one-stop electricity solution, helping users effectively implement project construction from electricity application to product selection, design optimization, organization of construction, and electrical acceptance and power supply.

The first to promote integrated financing leasing of electrical equipment to solve the funding difficulties faced by enterprises in construction.

"Leasing is a new financial management tool for enterprises, characterized by the combination of financing and asset acquisition, and is a win-win business model for multiple parties. Through financing leasing, it can effectively solve the dilemma between tight working capital and equipment upgrades." Wu Bangjiang analyzed the current situation of financing difficulties for enterprises, believing that by choosing financing leasing, enterprises can easily solve funding problems, shorten procurement time, obtain large amounts of working capital, avoid financial risks, and enjoy advantages that other financing methods cannot compare.

Financing leasing (equipment leasing) refers to a leasing company purchasing equipment based on the client's selection of equipment and suppliers and leasing it to the user. The user pays rent to the financing leasing company in installments according to the determined leasing period and interest rate. During the leasing period, the financing leasing company retains ownership of the equipment, and after the rent is fully paid, the ownership of the equipment can be transferred based on the user's request.

In fact, financing leasing has many advantages: low threshold, simple process; does not occupy bank credit limits, fully utilizes financial leverage; a small amount of upfront payment can obtain equipment, alleviating the pressure of enterprises making large one-time payments; flexible arrangement of rental amounts, repayment periods, and repayment methods to reduce the burden on enterprises; improves the current ratio of enterprises, optimizes financial structure; stable rental expenses allow enterprises to make more accurate profit and cash flow plans, resisting risks such as inflation.

A project in northern Anhui of the Red Star Macalline Group, which has been completed and put into use, adopted the method of financing leasing for electrical equipment to solve the funding difficulties faced by enterprises in construction. The total price of electrical equipment for this project exceeds 12 million, and by using the financial leasing solution provided by Guobian Electric, only 20% of the total contract amount is paid to obtain electrical equipment worth 12 million from the financial company, while paying the financial company for goods and interest over a period of 5 years.

"Guobian has a professional financing leasing service team and cooperates with many large financing leasing companies, possessing rich project experience. They can provide constructive suggestions for financing solutions based on specific user situations and recommend matching financing leasing companies for cooperation. This saves users a lot of time and effort in exploring the financing market and allows for quick and accurate responses to user needs." Wu Bangjiang listed many advantages of choosing Guobian Electric's financing leasing service, where financing leasing companies provide repurchase guarantees for recommended customer projects, standard module operations, assembly line approvals, and short approval times. During this period, Guobian will have dedicated personnel to follow up on the approval process and provide timely updates.

Internet business opportunities under information asymmetry.

Autumn Actual.

Industrial products are often out of sight in daily life, leading to long-term price opacity due to information asymmetry, which results in opaque operations in product procurement and engineering quotations. Products need to be marked up multiple times before reaching the owner. Direct online customization and sales break this balance. It allows the reasonable price and bottom price of products to be directly communicated to users, avoiding unnecessary costs for them.

The era of carrying a bag to promote products is gone forever; big data marketing has opened up new business models. Currently, many companies have made profits by leveraging information asymmetry through the internet. Guobian Electric is one of the largest sales and manufacturing service providers in the electrical equipment industry, with its Electric Tiger website selling products that cover over ten thousand electrical products, including power transformers, high and low voltage complete electrical sets, high and low voltage components, intelligent electrical control equipment, bus duct, wires, and cables. Among them, the annual sales volume of various transformers exceeds ten thousand units, having a wide influence in the industry.

As an industry resource integrator, Guobian Electric is also an important raw material agent in the transformer industry, being a primary and general agent for many transformer materials. As Guobian Electric puts it, even if the product price is sold very low, there is still a certain profit margin. Although the gross profit of products on the Electric Tiger website is very low, the sales costs are also low. At the same time, relying on Guobian Electric's mature Technology and comprehensive After-sale Service system, the costs for after-sale and service are also minimal, at worst, it can be considered as just earning the money for raw materials.

As one of Guobian Electric's sub-brands, "Fudian" is professionally positioned as a network-customized electrical product similar to "Xiaomi". The "Fudian" series includes dry-type transformers, oil-immersed transformers, amorphous alloy dry-type transformers, and amorphous alloy oil-immersed transformers at a voltage level of 10 kV, totaling nearly a hundred products, with prices that are astonishingly more than 30% lower than market prices.

As some experts say, relying on information asymmetry, long-term opaque operations, and relationship marketing is no longer the mainstream of the times. Based on industry integration, creating genuinely high cost-performance products to offer to users will win the future market. Feedback to customers ensures the quick and efficient operation of projects.