Overcapacity, increasing technology investment is the key to the development of the hardware industry

At present, the profits of hardware companies are gradually decreasing. First, the industry has overcapacity and oversupply in the market; on the other hand, homogeneous products flood the market, and there is a lack of high-end products with high added value and user-friendly design. According to industry insiders, the future trend of my country's hardware exports will be high value-added products to replace low value-added products.

In recent years, the development pattern of my country's hardware industry is quietly changing. It used to be in short supply, but now it has gradually become an oversupply, and the industry has overcapacity problems. At the same time, industry insiders pointed out that the current development of the industry is trending towards scale and diversification. If it is to seek sustainable development, it is inevitable to transform and upgrade the industry, increase technology investment, and improve product quality.

According to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (referred to as Chamber of Commerce), my country's hardware industry is currently showing large-scale and diversified development, bidding farewell to the past high-speed growth, and oversupply. It is understood that my country's larger hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces and cities. Such as the hardware and electromechanical production enterprise cluster in Yongkang City, Zhejiang, Linyi Hardware Market in Shandong, Hangzhou New Century Lock Market, Shanghai Hardware and Electromechanical u003dTrade City, Chengdu Jinfu Hardware and Electromechanical City, Guangdong Guangfo Hardware and Electromechanical City, etc. At present, my country's daily hardware products industry has stepped into the forefront of the world. Relevant information shows that in recent years, my country has established 14 technology development centers such as zippers, electric shavers, stainless steel utensils, iron pots, blades, bicycle locks, and 16 product centers such as pressure cookers, electric shavers, and lighters. . At the same time, my country has gradually become one of the world's largest hardware product processing and exporting countries. It is estimated that by 2013, the growth rate of my country's exports of hardware and other related products will remain at about 10%.

According to the Chamber of Commerce of Electrical and Mechanical Services, the construction of professional hardware markets across the country has basically formed a pattern of reasonable combination of production area and circulation type, large and medium and small, comprehensive and single type, complementing each other. Take Tianjin Hardware Market as an example. The four major hardware professional markets of Tianjin International Hardware u0026 Electrical City, Xinnan Road Hardware City, Northern Hardware City and Pearl River Hardware City have total annual sales of more than 20 billion yuan. The diversification effect of these four major markets not only gathers more than 60% of hardware merchant operators in Tianjin, but also introduces all well-known domestic and foreign brands into the Tianjin market, forming one of the largest hardware industry wholesale bases in northern my country.

Increasing technology investment is the key

According to industry insiders, the hardware industry has bid farewell to a 10-year period of rapid development. With the deepening of competition among related enterprises, the profit margins at all stages of the hardware industry chain have been compressed, and the room for price reductions is decreasing. At the same time, the international market's requirements for my country's hardware products have gradually changed, and higher requirements for the quality, packaging, and delivery period of my country's hardware products have even gradually extended to the production process and product research and development links. According to industry insiders, a few years ago, most small and medium-sized enterprises still had profits of about 20%, but now their profits have fallen below 10%.

Looking at China's small and medium hardware companies, most of them are mainly engaged in the production of accessories, lack of independent brands, and serious homogeneity competition. Many companies lack bargaining power. Under the environment of high CPI, high cost and new high RMB exchange rate, they are facing pressure It's getting bigger and bigger. Under this circumstance, transformation and upgrading has become an inevitable trend in the development of the industry in the future. Industry insiders predict that the new change facing my country's hardware exports in the future will be the increase in the export volume of high-tech products. The original low-value-added hardware products will be replaced by a batch of high-tech and high-value-added export products.

Experts said that if a company wants to win in the competition, it must do the following three points: one is to ensure the quality of the product, which is the lifeline of the company; the second is to clarify the needs of consumers and develop their own characteristics of satisfaction Consumer demand products; the third is to strengthen self-management, enterprises, big or small, must get rid of the extensive development model.