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Five changes in the domestic hardware industry

Article Source: shangjinggong Popularity:203 issuing time:2020-04-03 09:15:54

The hardware industry is brewing five major changes, of which spring accounts for a certain percentage. According to customs statistics, in 2010, the total import and export of China's hardware industry reached US $ 74.923 billion. A year-on-year increase of 30.1%, of which exports totaled 57.51 billion U.S. dollars, an increase of 31.4% year-on-year; total imports were 17.412 billion U.S. dollars, an increase of 26% year-on-year. Regarding the outstanding achievements of the hardware industry, Shi Senlan, executive vice chairman of the China Hardware Association, said that in the trough of development, the China Hardware Association guided the industry to adjust strategies, accelerate transformation and structural adjustment, and change from an outward-oriented to a two-legged model Simultaneously, domestic and foreign trade simultaneously ", continue to develop the domestic market. The positive driving effect is significant, triggering a comprehensive rebound in the hardware industry, especially domestic sales, showing explosive growth, achieving a rapid growth of 27% across the industry. Although China's hardware industry achieved good results in 2010, the "Twelfth Five-Year Plan" put forward higher requirements for the hardware industry. The country has proposed the transformation of industries to low-carbon and environmental protection, but the specific transformation methods require industry and enterprises to carry out in-depth thinking and in-depth changes in light of their own conditions. Conversion is not transferred from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, that is, moving from the current situation to a higher-level industrial model. In recent years, the China Hardware Association has refined the five major changes implemented during the "Twelfth Five-Year Plan" based on the development trend of the "Twelfth Five-Year Plan" and national industrial policy requirements. This is the main direction and focus of the hardware industry planning and upgrading in the next five years.



1. Five major changes in the domestic hardware industry

 


The first transition: from extensive to intensive: change the current status of small, multi-, weak, and scattered industries, improve product processing capabilities, improve manufacturing equipment and technology, build brands, and take the intensive development path. In the past 15 years, the hardware industry has basically embarked on an extensive development path. The disadvantages of high pollution, low level, repeated labor, excess of low-grade products and shortage of high-grade products have always existed, which not only caused waste of resources and environmental damage, but also restricted their own development. Now, this growth model has come to an end. The core of the transformation from extensive to intensive is to improve product processing capacity and quality level, and take the road of independent innovation and independent brand development. Improving quality, creating independent brands, independent channels, and independent innovation capabilities have become the top priorities, and the shift from extensive to intensive is imminent.


 


The second change: from labor-intensive to technology-intensive: labor-intensive industries can also introduce modern electronics, IT and other technologies into the industry. The faucet industrial design competition announced at the China International Hardware Exhibition in 2010 is a demonstration and guidance for all industry associations to start with industrial design and improve product technical content and added value. There are many types of hardware industry, each with its own characteristics, and there is more room for growth in a technology-intensive manner.


 


The third change: from quantity expansion to quality improvement: the current status of product homogeneity and low-level repetitive labor in the industry has not improved, but you have begun to realize this problem. To realize the transition from a large producer to a strong producer, it is necessary to overcome the current situation of too many low-end products and insufficient high-end products. At the beginning, we mentioned that the import of construction hardware in 2010 was 4.99 billion US dollars, a year-on-year increase of nearly 30%. It can be seen that the market equivalent to more than 30 billion yuan has been occupied by foreign brands.


 


The fourth change: low cost, low price to high added value, and high profit margin increase: At present, there is still low-cost competition among peers in the construction hardware industry, which has caused interference to the industry. This kind of competition is completely a kind of damage to the industry, and the final result can only be a loss of both sides. A positive example is the range hood industry, which is an important product in the hardware industry. So far, there has been no price war. The construction hardware industry should also analyze its own price characteristics, increase its own brand connotation, and create and promote the establishment of sales channels. It cannot be a real hollow enterprise. We should increase our efforts in brand promotion and hardware market. At present, the domestic market is very mature, and the quality and taste of consumers have also been improved. Therefore, taking root in the domestic market, especially the high-end market, can take the initiative and not be afraid of the impact of the crisis. At present, production costs, living costs and social costs are constantly increasing, and product prices are also facing tremendous pressure. How to adjust also requires careful planning by the enterprise.


 


Fifth change: Mainly export OEM and independent brands: Mainly domestic market, instead of abandoning the international market, but walking on two legs, which means that domestic and foreign markets attach equal importance and are not incompatible But as a key enterprise in the industry, OEMs can shut down if they want to become a century-old enterprise. OEM has always been the front line of order reception, production and delivery. It knows nothing about the domestic market, standards and trends. This industrial model that is completely dependent on each other is actually very dangerous and passive. Once the customer changes, the company is likely to fall into a comprehensive crisis. Therefore, in order to continuously improve product quality and promote the long-term development of enterprises, we must grasp the initiative of the brand and embark on a solid independent brand road.


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