In the last two decades, the achievements of the pump and valve industry in China under the influence of the rapid socio-economic development are obvious to all. Whether it is product performance or quality has a certain increase. However, compared with outstanding foreign companies, domestic pump and valve companies are still in a disadvantaged position in the market. The thin profit margins and low R&D and innovation capability are still the challenges faced by many domestic pump and valve companies. What are the reasons that hinder the domestic pump and valve companies from making difficult moves on the high-end development path?

According to survey data from the CNPV Alliance, in the past three years, China's pump and valve companies invested only one-fifth of the UK's investment in research and innovation, and one-third of Germany's investment. Compared with Western companies, our investment in R&D capital is minimal, and some even fail to reach 5 percent of operating income. Such a weak capital investment is difficult to achieve.

Under the premise that the current international pump market is so fierce, it is impossible to obtain high returns without high investment. It is extremely difficult to occupy a market place. In particular, pump valves such as hydraulic transmission valves, safety valves, or relief valves require high input to ensure continuous R&D and innovation capabilities. Therefore, the insufficiency of investment has caused many valve companies in China to remain in the low-end industry sectors.

Weak brand awareness has led to pump companies failing to form a fist advantage

Weak brand awareness and ignorance of product investment in brand building are common problems for domestic pump and valve companies. The direct consequence of the lack of a brand advantage is the lack of customer recognition of domestic products. The same quality of the valve products on the market, the customer's first choice is that the well-known brands of products is the reason.

Many companies are affected by traditional marketing, and lack branding in brand promotion. They believe that with good product quality, they will surely gain a foothold in the market. In fact, in the era of Internet economy, blindly adhering to self-declaration can only be a dead end. Extending the market influence of products and forming their own brand advantages can take the lead in fierce market competition. Therefore, focusing on the brand building of products is the key to ensuring that our valve companies take the high-end route.

Lack of scientific planning for marketing

The reason why many well-established domestic pump and valve companies are difficult to achieve substantial breakthroughs in their business lies in the unsatisfactory marketing planning. Especially in network marketing, it is because there is no professional platform and it is a splurge. The emergence of the CNPV alliance undoubtedly played a role in boosting the development of domestic pump and valve products to the high end. It is of great significance for the valve companies to better and quickly introduce products.

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