New trends in the development of China's hardware industry

In recent years, China has gradually become a major metal processing country and exporter in the world, and has a vast market and consumption potential. The hardware industry is currently showing new development trends, mainly in the following five aspects.

First, hardware and tools into the main force In recent years, with the continuous development of the economy, China's hardware and tool processing industry has gradually become the main force of the world's hardware and tools industry. Hardware tools are labor-intensive industries. As a hometown of hardware, Yongkang has become a gathering place for hardware tools with low-cost traditional competitive advantages. With the continuous improvement of our country’s status in the world, more and more countries in the world are using Chinese hardware products. In some developed countries, especially in Africa, the Middle East and other developing countries, the demand for hardware tools is increasing at a rate of more than 10% per year. To a certain extent, it stimulated the development of China's hardware products.

Second, technological investment to enhance the quality of market competition will shift from the main price to high-quality, high-tech products. With the deepening of competition, the profit space in all stages of the hardware industry chain is being compressed, and the space for price reduction is decreasing. More and more companies are realizing that it is impossible to establish core competitiveness based on price competition alone, and not the direction of long-term development, in an effort to explore new development paths. The integration with foreign companies will continue to enhance the quality and competitiveness of Chinese hardware products. At the same time, the requirements of the international market for China's hardware products will gradually evolve and change. There will be higher requirements for the quality, packaging, and delivery deadlines of Chinese products, and even gradually extend to the production process and product development, and the products and the environment , energy resources, and humanities combined. Many hardware companies have increased their investment in technology, developed new products with high-tech content, used product differentiation as a long-term plan for business development, sought new market demand, and established new economic growth points to realize the Continuous development.

Third, the capital expansion has intensified the capital operation in the hardware industry. Under the global competitive environment, in order to obtain a favorable competitive position and improve competitiveness, industrial capital has become an important theme of the industry operation. In 2004, Supor and Vantage went on the market successively, and Hongbao was also actively making efforts for the listing. Wanhe's capital market operation did not stop due to the failure to restructure with Yuemei. From a capital perspective, the current major feature is the expansion of capital. From the point of view of competitive behavior, cooperation in resource sharing among enterprises is increasing.

Fourth, cooperation between enterprises has increased From the perspective of competitive behavior, the cooperation between resource sharing among enterprises is increasing. On the one hand, the trend of development in the sales industry has led to the continuous rise of the status of large-scale home appliance chain stores, enhanced control over the industry, and has led to the past. Mainly manufacturer-led price competition. Large retailers, with their broad market coverage, purchasing scale, and cost advantages, will increasingly control the production companies in terms of product pricing, payment, and delivery. On the other hand, manufacturers have tightened their control over retail terminals, striving to reduce sales cycles, save on sales expenses, and make sales channels more professional. The company's sales model has been able to adapt to multiple markets at the same time. As a subordinate small and medium-sized enterprise, it will be in a disadvantageous position in the competition under this trend.

5. Exports of Hardware Tools Products Warmer The development of the hardware industry ushered in a new pattern of foreign trade, and the export of high-tech products has grown significantly. According to research by Luo Baihui, the general secretary of the International Tool & Die & Plastics Industry Suppliers Association, cutting tools such as wire rope shears, bolt cutters, saw frames, machine tools, telecommunications tools, and household combination tools, etc., steel tape measure, A series of high-tech and high-value-added export products, including level gauges, measuring tools, socket wrenches, impact batches, and other fast-changing products, gradually replace the low-value-added hardware tools and other commodities, among which are the clamping and cutting tools. The largest share of products.

The strategy of export diversification has made progress. While consolidating existing traditional markets such as Southeast Asia and the Americas, dealers actively adjusted the product operating structure, changed the purchasing and sales model between the main customers and customers, and worked hard to open up new markets such as Africa and Europe.

The exporter’s strength is constantly increasing. The export of large-scale and honest business households went hand in hand, and the export growth of both hardware and tool products far exceeded that of general business households.

The self-produced and self-sufficient brand-name processing and creation trade has grown rapidly. For example, Zhuoshi Polishing Abrasives Abrasives Center, Gold Union Hardware Industry, Commonwealth Industrial Hardware Center, Vertical and Horizontal Hardware Tool Center and other major operators have launched their own advantage brands, and their share in export products has continuously increased.

In view of the above, the trend of increasing demand for hardware and tools, increasing the quality of hardware products, intensifying capital expansion, and increasing cooperation among enterprises are good things for powerful hardware companies. When such large companies comply, This trend will only grow stronger and bigger. For small and medium-sized hardware companies, there may be gaps in product quality, and there are relatively few opportunities for cooperation, let alone capital operations. Therefore, in the hardware industry continues to develop and progress, the survival environment of small businesses will become increasingly difficult. The Matthew effect refers to the stronger and weaker weakers. For the hardware industry, powerful companies use hardware trends to analyze better development companies, while for SMEs, only a tenacious transformation and upgrading can spell a world in the hardware industry.