Analysis of Changes in the Development Pattern of China's Hardware Industry

Currently, the profits of hardware companies are gradually decreasing. First, there is excess capacity in the industry and the market is oversupply. On the other hand, homogeneous products flood the market, and high-end products with high added value and user-friendly design are lacking. Industry sources said that in the future, China's hardware products export trend will be high value-added products to replace low value-added products.

It is understood that in recent years, the development pattern of China's hardware industry is quietly changing. Before it was in short supply, it has gradually become oversupply and the industry has excess capacity. At the same time, people in the industry pointed out that the development of the industry is now tending to be large-scale and diversified. To seek sustainable development, it is inevitable for the industry to transform and upgrade, increase technical investment, and improve product quality.

Overcapacity

According to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (hereinafter referred to as the Electromechanical Chamber of Commerce), China’s hardware industry is currently undergoing large-scale and diversified development, bid farewell to the previous high-speed growth, and there is an oversupply situation. It is understood that China's larger hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces and cities. Such as Zhejiang Yongkang Hardware and Electromechanical production enterprise cluster, Shandong Linyi Hardware Market, Hangzhou New Century Lock Market, Shanghai Hardware & Electrical <Classification 2 = Trade City, Chengdu Jinfu Hardware & Electrical City, Guangdong Guangfo Hardware & Electrical City. At present, China’s daily hardware products industry has entered the world. Relevant information shows that in recent years, China has established 14 technology development centers, including zippers, electric shavers, stainless steel vessels, iron pans, blades, and bicycle locks, as well as 16 product centers such as pressure cookers, electric shavers, and lighters. . At the same time, China has gradually become one of the largest metal processing and exporting countries in the world. It is estimated that by 2014, the export growth rate of China's hardware and related products will remain at approximately 10%.

From the Electrical and Mechanical Chamber of Commerce, it has been learned that the construction of professional hardware markets throughout the country has basically formed the pattern of producing areas and circulation, large and small and medium-sized, comprehensive and single types, and complement each other. Taking the Tianjin Hardware Market as an example, the four hardware professional markets of Tianjin International Hardware & Electromechanical City, New South Road Hardware City, North Hardware City and Zhujiang Hardware City have annual sales of over 20 billion yuan. The diversified effects of these four markets not only brought together more than 60% of the hardware business operators in Tianjin, but also introduced well-known domestic and foreign brands into the Tianjin market, forming one of the largest hardware industry wholesale bases in the north of China.

Increasing technology investment is the key

According to industry sources, the hardware industry has already bid farewell to the rapid development period of 10 years. With the deepening of the competition of related companies, the profit space in each stage of the hardware industry chain has been compressed, and the space for price reduction has been reduced. At the same time, the requirements of the international market for China's hardware products have also gradually changed, with higher requirements for the quality, packaging, and delivery deadlines of China's hardware products, and even gradually extended to the production process and product development. According to industry sources, most SMEs still have about 20% of profits a few years ago, and profits have fallen below 10%.

Looking at China’s small and medium-sized hardware companies, most of them are mainly production parts, lacking independent brands, and the homogeneity competition is serious. Many companies lack bargaining power, and the pressure is facing under the high environment of high CPI, high cost, and high exchange rate. getting bigger. Under this circumstance, transformation and upgrading have become the inevitable trend of future industry development. Industry insiders expect that in the future, new changes in the export of hardware products in China will be the increase in the export volume of high-tech products. The previously low-value-added hardware products will be replaced by a number of high value-added export products with high technology.

Experts said that if an enterprise wants to win the competition, it must do the following three things: First, to ensure the quality of the product, which is the lifeline of the company; Second, to clarify the needs of consumers, to develop with their own characteristics to meet consumer demand The third is to strengthen their own management, regardless of the size of the enterprise, must be free from extensive development model.