What if the lock market profit declines seriously?

At present, the annual sales of the domestic lock industry has reached more than 40 billion yuan, the production capacity has exceeded 2 billion sets, and the annual export volume has exceeded 10 billion yuan. In the future, China's lock market will continue to grow at a rate of more than 20% per year. While vigorously promoting the development of China's lock industry, the future of the lock industry is limitless. However, the profit decline phenomenon occurred in the development of the lock market, and the road to industry integration is imperative.

Domestic hardware locks companies gradually reduce profits

After several years of rapid development, the hardware company has not been greeted by the spring of this year but has been questioned by consumers. The market competition is getting bigger and bigger, and the income is going downhill. What are the reasons?

No professional market has been cultivated. Generally speaking, consumers purchase hardware products at any nearby grocery store or daily supermarket. The reason is that the hardware industry does not cultivate professional markets, and traditional hardware distribution centers lack systematic marketing strategies and related Regional protection, not to mention a stable price system. If there is a professional hardware market, there will be a strong market supervision, consumer's purchase of centripetal force can be formed, and the market order is also very good.

What if the lock market profit declines seriously?

Lack of comprehensive brand capabilities. After careful understanding, it is not difficult to find that the hardware products circulating on the market today are rough in workmanship, single style and outdated, and lack of brand protection. These seriously reduce the consumer's trust in the products, and when consumers purchase hardware products, it is precisely The brand is very important, it can be said that it is the primary demand for purchasing products, and the comprehensive strength of the brand undoubtedly restricts the overall development of the hardware industry.

Foreign companies have seized the market. China's hardware products, especially the mold industry, are mostly produced in a small workshop mode. The professionalism and refinement of the products produced are insufficient. The foreign mold enterprises are mostly small, specialized, small and fine, which opens the way for foreign-funded enterprises to enter the Chinese market. Raw materials rose and profit margins decreased. The direct downstream material of hardware products is steel, and the price of steel is rising. Taking bathroom hardware as an example, the raw material cost of producing a faucet product is the largest. At present, the faucet is mainly made of copper material, and the price of copper is about 38,000 yuan/ton. According to the billion mine network, the cost of raw materials accounts for the entire production cost. More than 70%, according to the domestic gross profit margin of 30%, the cost price of a faucet has reached 200 yuan.

The 12th Five-Year Plan has arrived, and some experts predict that the market share of China's mold industry will reach 300 billion yuan. Whether the hardware industry can usher in its spring under the policy stimulus will be waiting to be seen.

The road to lock integration is imperative

The Chinese lock industry is accompanied by the arrival of the knowledge economy, the global economy, the information society, and the changes in competitive factors. It faces the crisis of competition in the international market. From the overall analysis, there are many small and complete production enterprises, and high-tech with independent intellectual property rights and patents. The number of lock companies is small, resulting in extremely unstable quality and inferior products flooding the market. Then, how can we comprehensively improve the manufacturing quality of Chinese locks and enable the industry to enter the integration path.

The development trend of China's lock products should be from high precision, high efficiency, high firmness and multi-function; two specifications and multiple varieties; three standardization, serialization and generalization, showing its characteristics; technological and technical enhancement should be from: cutting Processing technology, stamping technology, die-casting technology, surface treatment technology, automatic assembly line and other aspects.

The Chinese lock industry should have an overall organizational goal, and scientific and technological progress can be steadily improved year by year, such as product structure, product quality, technical equipment, innovation capability, talent structure, and so on. Locks are a necessity for people's lives. They are daily-use hardware and a type of security products. The development of this industry is good or bad, and it is related to the safety of every family, unit and public place. Today, with the increasing competition in the international market, if Chinese locks are still uninnovated and stop, they will be eliminated by the international market. Like modern high-tech operations in Italy, the United States, Germany, Japan, the United Kingdom and France, it can be called a strong country, and their technological level and technological level are leading the world. World famous brand locks came from these countries, but with the increasing labor of these developed countries, by the 1970s, the low-end lock production center gradually shifted to the Asian Tigers and achieved great development. By the early 1990s, the labor costs of the Asian Tigers increased, the competitive advantage declined, and the global lock market was declining. At this time, Chinese locksmiths seized this opportunity and mass-produced. By 1992, the total output of China's locks reached 1.05 billion, and more than 200 million were exported, gradually becoming a big country in the production of locks. However, so far, the Chinese lock industry is only a growing market. According to relevant media surveys, the preliminary conclusions are that China's lock-making enterprises are unevenly distributed throughout the country, and the cluster phenomenon is prominent; disorderly competition is strict, and hardware profits are extremely low. This has seriously disrupted the development of the entire industry.