At the same time, the deep-seated problems that the manufacturing industry has been overshadowed by the booming economic momentum of the past decade have been exposed before this test of life and death, including the hardware industry known as “hardware, big industryâ€. .
"Fish and dragon mixed", "sand down", this is the general perception of the hardware industry, especially the hand tool brand. Among the tens of millions of manual manufacturers of hand tools, some have world-class technology but have difficulty in owning their own brands, while others are poorly manufactured. How to change the status quo?
"Through the establishment and improvement of industry standards and enterprise standards, the overall product quality of hand tools will be gradually improved, national brands will be gradually established, and the high added value driven by the brand will be realized, and the overall industry will be bigger and stronger." Shanghai Institute of Tools Industry Xu Donghai believes that standardization is not only a way for self-improvement of manual tools, but also a major test that it has to face.
Quality: Enterprise viability "When the economy is in good condition, high-quality products and low-quality products may all live very well, but once the economic situation deteriorates, the difference will be seen." A hardware industry insider said, "high-quality products. The ability to withstand stress and survivability, as well as resilience, are beyond the reach of low-quality products."
A typical case cited by the above-mentioned people is Wendeng Weili. Last year, the economy deteriorated and production capacity declined. The hardware and tools industry was the first to bear the brunt. Wendeng Weili's product sales market is abroad, and it should be extremely severely affected. But in fact, compared with his peers, Wendeng Weili's situation can be said to be enviable.
"In November last year, the impact of the economic crisis on it was not reflected at all; from December until May of this year, although it was reflected, the order was much smaller than the peers; but in May this year, Wendeng began. Willie started the business again and couldn't do it," said the source.
According to Xu Donghai, the reason for this is that Wendeng Weili's business model is to cooperate with the highest-end foreign companies to OEM. The highest-end enterprises in the financial crisis are affected by about 20%, and the low-end enterprises may be affected by 80. %.
"This is a common phenomenon. The best quality of the technology is the best, then the order will be reduced to the least." Xu Donghai said.
As early as the mid-1980s, Wendeng Willi had already cooperated with the Shanghai Tool Industry Research Institute to start research and establish a standardization system for enterprises. Another important aspect of the cooperation between the two parties is that when Wendeng Willi obtains foreign orders, the Institute is responsible for translating the standard system of products.
Xu Donghai introduced that Wendeng Weili's brand has gradually become the first in China, and it can be seen from the time. The emphasis on quality and standards is the root cause of the continuous improvement of its brand. And this is also a common gene for the rise of a number of hardware tools companies.
However, Xu Donghai also pointed out that while many brands are chasing the "quality holy grail", there are still quite a number of hardware tool companies still have quite short-sighted behaviors. They think that there are a large number of orders in front of them, and the industry standards cannot be implemented. Not to mention the development of higher corporate standards.
"There are some companies that have misunderstandings about branding, that is, to make the reputation bigger. Everyone knows this brand, but the technical quality standards are not keeping up, the profit margin is very thin, and the sales volume is very large, so the total profit is good. But the development is now The bottleneck has also come, why? Without the power of follow-up development, the profit rate is also decreasing. In the face of the market, such companies will ultimately have to pay the price," he said.
Dream: high added value
Raising standards, improving quality, and building brands – this “trilogy†is not only limited to the survival of the hardware industry during the financial crisis, but more importantly, it is to increase the added value of hardware tools. Make bigger and stronger brands.
"In fact, we suffer from low standards. In fact, the foreign standards are much higher than ours. Therefore, the domestic exports are going to the people's homes. This is the low added value." Xu Donghai said.
An extreme example is that many of the hardware companies that do OEM production have good technical capabilities. When they introduce orders from various countries, they also begin to be comfortable with advanced standards such as the United States and Germany. But because it only controls the production process, the profit margin is very low.
"The same products produced by Chinese companies, with international brands, can immediately increase the added value by a dozen times. The reason is that these countries have high standards, credibility and authority." Xu Donghai said.
This is a kind of harm for domestic companies. The standards of many advanced companies far exceed domestic standards, but the same products can achieve a 10% profit margin for their own brands, and 90% for foreign brands. In the long run, it is natural for corporate decision makers to insist on developing their own brands.
"Abandoning your own brand, you have to do OEM work, you still can't get high added value - it seems to be a vicious circle." Industry insiders said.
What is even more worrying is the large number of small businesses that have emerged in the low-threshold industry of hardware tools.
“For example, many companies in Yuyao are small businesses and even family workshops. They also have markets, such as Africa and Central Asia. But they don’t care about national standards and industry standards. The products that are sold out are cheap, but the quality is very high. Poor. In the long run, the reputation of domestic national brands will cause very serious harm." Xu Donghai said.
However, China is still making progress, especially after 1995, the development of domestic standards and the introduction of international standards, the hardware tools industry has made great progress. In fact, in the formulation of national standards and industry standards, the hardware industry is at the forefront compared with other manufacturing industries, and quite a few companies have shown full enthusiasm in the formulation of corporate standards.
"In the past international tool exhibition, China's products did not have a Chinese pavilion, because China's products are the same as the stalls. But now the head is up, there is a Chinese pavilion." Industry insiders said.
Standard Road: A long way to go
Even though the importance of standardization for the long-term development of the hardware industry has been recognized, there are still many practical obstacles in the implementation of reality.
In Xu Donghai's view, one of the problems is to pursue the balance between high-end standards and domestic real-world productivity.
"Our national standards have to be developed not only to take care of the needs of international technology, but also to take care of the specific situation in the country. Only by pursuing high standards, such as simply using American and German standards as Chinese standards, 70% of enterprises are not enough. Ge," Xu Donghai said.
One way to solve this problem is to adopt industry standards as the technical standard for mid-range companies that occupy about 60% of the market share. The standard system of technology-leading companies is developed by professional organizations.
In this regard, many international brands have encountered embarrassment in the process of entering China, that is, the integration of their advanced standards with Chinese standards - excessive standards lead to excessive production costs, ultimately leading to excessive prices and shrinking market. So they also need a set of standards that are in line with China's actual conditions.
“In the past two years, the enthusiasm of enterprises for the development of corporate standards has been continuously improved. It is the two-way demand of domestic enterprises and foreign companies,†said the industry source.
In addition, in the process of promoting standards development and technological progress, enterprises also need to face the bottleneck of the current shortage of technical talents. It is said that a hardware tool company in Hangzhou has invested heavily in the establishment of an advanced testing system, but the technical talent team has been unable to keep up, resulting in the input can not always have a corresponding output.
“The cooperation between enterprises and professional institutions is a path worth exploring.†Xu Donghai believes.
Many companies do have the need to establish corporate standards, and cooperation with professional organizations can be strongly guaranteed from technical resources or talent teams. Research institutions can also gain more practical experience in this process and promote the formulation of national and industry standards.
This process is actually a process in which companies participate in the formulation of national standards. For enterprises, this also means creating a “golden signboard†for the technical strength of enterprises and improving their ability to negotiate in the international market.
"Practice proves that professional institutions and powerful enterprises are united, each takes their own strengths and absorbs nutrients from each other, and ultimately can promote the improvement of national standards. This is a road of mutual benefit. Professional institutions play a guiding role. If they can guide If it is good, the excellent companies will expand their market share. At that time, the national brand will be more mature." Xu Donghai said.
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