Mei Ri Jing Ji Xin Wen·2025-07-23 08:48Core Insights - The article discusses the challenges faced by small and medium-sized photovoltaic (PV) companies in Yiwu's international trade market, particularly in the context of a declining solar component price and increased competition from larger manufacturers [2][3][4]. Group 1: Market Dynamics - The Yiwu International Trade City features over 260 shops displaying solar products, primarily targeting markets in Africa, the Middle East, and Southeast Asia [2]. - The current "winter" in the photovoltaic industry has led to a significant drop in component prices, pushing many small companies to operate on razor-thin margins [2][3]. - Major brands like Longi and Jinko dominate the market, with smaller companies often relegated to the role of "brand porters," struggling to maintain profitability [2][9]. Group 2: Operational Challenges - Small PV companies, such as Yaozan Solar, rely heavily on contract manufacturing for larger firms, facing severe pressure on profit margins due to competitive pricing [3][4]. - The operational model of contract manufacturing has resulted in low utilization rates, with many companies unable to compete effectively against larger players [4][7]. - Financial constraints are exacerbated by unfavorable payment terms, where small manufacturers often receive payments much later than larger firms [7]. Group 3: Brand Influence and Market Positioning - Foreign buyers increasingly prefer well-known brands, which affects the sales strategies of smaller companies that primarily stock products from major manufacturers [8][9]. - The lack of brand recognition among smaller firms leads to high inventory levels, as they are hesitant to sell products at a loss [13]. - The market is characterized by significant price competition and quality inconsistency, with some companies resorting to selling counterfeit products, further complicating the landscape [13]. Group 4: Strategic Responses - Companies like Langkai New Energy are focusing on developing proprietary products with unique features to enhance competitiveness, while also providing services to international clients [19][20]. - The strategy includes creating value-added products and establishing overseas service centers to support clients in various countries, thereby differentiating from larger competitors [21]. - The overall approach of small and medium-sized enterprises in Yiwu is to leverage flexibility and service-oriented strategies to compete against larger firms that dominate the market [21].