Distribution switch concentration continues to increase

The 12th Five-Year Network Company plans to complete a rural network transformation investment of 571.6 billion yuan, an increase of 51.78 over the 11th five-year plan. In addition to the rural network, the investment in the urban network transformation of the two networks has continued, thus providing demand support for distribution switchgear. The technology level of domestic-funded enterprises' mature products has been quite similar to that of foreign brands and the cost performance is high. If the investment funds are tight, the cost-effectiveness advantage of domestic brands will gradually emerge, and the cakes of foreign brands will gradually be devoured. State Grid Corporation of China and other large users gradually adopt centralized bidding methods for distribution switches. SMEs that lack a competitive advantage are gradually marginalized. With the advancement of separation of main and auxiliary enterprises in power grid companies, the relationship marketing model of DDA has been gradually disintegrated. Lack of independent innovation capability, at the same time, its foreign brands that have been sold or rebranded have no advantage in terms of price. Therefore, the survival status of most of the diversified companies has changed dramatically. Concerned about having scale advantages and cost control capabilities, the downstream demand comes from the domestic leading enterprises with higher proportion of grid companies.