Six Characteristics of the Development of China's Hardware Market

At present, the largest pieces of hardware in the hardware industry are mainly concentrated in mechanical hardware, architectural hardware, decorative hardware, and daily-use hardware. Experts predict that by 2020, the proportion of China’s industrial added value in global industrial added value will increase from 5.72% in 2000 to over 10%; the export of manufactured goods will account for the proportion of global manufactured exports, which should be from 5.22 in 2000. % increased to more than 10%. At that time, China will also have a number of powerful hardware manufacturing groups, forming a number of distinctive and internationally renowned hardware manufacturing centers.

After decades of accumulation and steadily increasing, China's hardware industry is now the world's largest producer, and exports have steadily increased each year. Among them, the largest export value is the tool products, up to 5.34 billion US dollars; followed by construction hardware, for 4.34 billion US dollars. The tap exports 2.23 billion U.S. dollars and the locks export 680 million U.S. dollars. The countries with the most exports are the United States, Japan, Europe, and South Korea. The annual export of China's hardware industry is growing at a rate of around 8%. Last year, the export volume of hardware products exceeded US$5 billion, ranking third in the export ranking of light industry. Due to the increase in the level of Chinese hardware manufacturing and the expansion of production capacity, China's hardware products are expected to maintain a steady growth of over 10% per year over the next five years. In the first 10 months, the import and export volume of hardware and electromechanical products in China exceeded 500 billion U.S. dollars. The surplus further expanded, totaling 7.06 billion U.S. dollars, accounting for 64% of the national trade surplus in the same period.

The development potential of the hardware industry is huge. Market opportunities are attractive. Luo Baihui, head of the International Die and Plastic Hardware Industry Suppliers Association pointed out that the current development characteristics of China's hardware industry show six major trends: the surge in exports, the obvious comparative advantage; the active capital operation, driving the enterprise Inter-resource sharing; corporate polarization, bringing market rationality; increasing high-tech content, improving product market competitiveness, “domestic competition internationalization, international competition domesticization” will be the characteristics of China's hardware industry in the next few years.

1. The status as a global hardware manufacturing center will be further stabilized.

China's economic facilities are relatively complete, its industrial development is relatively mature, and its labor costs are relatively low. It has the comparative advantage of becoming a global hardware manufacturing center, and its outward-oriented development characteristics are obvious. The strengthening of the status of the center was first manifested in the overall growth of hardware product exports in recent years: the growth rate of the export of major hardware products was higher than the growth rate of production, higher than the growth rate of sales in the domestic market; the main hardware and electronic products were fully developed and electric The traditional export products of tools, hand tools, and architectural hardware products have a very high growth rate. The huge market and central position attraction will further attract the transfer of manufacturing centers of hardware multinational companies to China.

2. The capital operation in the industry will tend to be active and the cooperation between enterprises will be significantly strengthened.

In an environment of global competition, industrial capital is another subject of industry operations in order to obtain a favorable competitive position and improve competitiveness. In 2004, Supor and Vantage went on the market successively. Hongbao was also working hard for the listing. Wanhe's capital market operation will not stop due to the failure of restructuring 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.

3. The polarization of the business will further intensify.

The next few years will be the high-speed oscillation period of the hardware industry. The direct consequence of this high-speed shock is the expansion of the polarization trend in the current hardware and kitchen brand camp. It is expected that the hardware companies that can really survive in the market in the next few years will definitely not be so much now. However, this high-speed oscillation in the hardware industry will bring huge opportunities. The result of the shock will make the market operation more rational.

4. The sales channels will undergo profound changes and the competition between channels will become increasingly fierce.

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. 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.

5. Market competition will shift from price-based 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. Many hardware companies have increased their investment in technology, developed new products with high technological content, made product differentiation as a long-term plan for enterprise development, sought new market demand, and established new economic growth points (into small household appliances and Other similar industries) to achieve the sustainable development of enterprises.

6. The integration of domestic and foreign enterprises will further accelerate.

Domestic hardware companies, in order to increase their own strength and expand the international market faster, will accelerate the integration with foreign companies through various means to improve product quality and competitiveness. While continuing to expand markets in the United States, Japan, and other traditional countries, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom.