Analysis of China's Hardware Industry Market Development Report

After more than 20 years of hard work, China's hardware industry has become a veritable hardware country. In recent years, the hardware market is the best market in several major industry markets in China. At present, the largest market in the hardware industry is mainly concentrated in mechanical hardware, construction hardware, decorative hardware, daily hardware and other large blocks.

First, the status quo of Chinese hardware companies

A few years ago, China's hardware industry overall grade is not too high, SMEs are more, starting low, mostly for some small workshops; in recent years, the changes are relatively large, one is the improvement of personnel quality, such as the largest in Beijing The person in charge of the hardware market "Zhonghua Hardware City" is a doctoral and post-doctoral person; the second is the improvement of the level of technology and management. The factory like Great Wall Seiko has a very high level in craftsmanship and management.

At present, the level of domestic production technology is uneven. Many large foreign manufacturers regard China as their product processing base. Many companies in the world have entered the mainland market. At present, it is the stage of upgrading and upgrading of China's hardware products, from the low-end to the high-end products. This is very beneficial to the development of China's hardware industry. In the process of transferring foreign products to the domestic market, some advanced production processes and management models including Raw Materials will be brought together.

From the perspective of traditional hardware, the first is the tool, which is faster than manual tools, hydraulic tools and power tools. Second, in terms of construction hardware and decorative hardware, the speed of replacement is relatively fast.

The market for hardware components is in great demand. Hebei, a small processing plant, the production process is very backward, its sales force across the country has reached more than 100,000.

After more than ten years of accumulation and steady improvement, China's hardware industry is now the world's largest producer, and exports are growing steadily every year. Among them, the largest export value was tool products, reaching 5.34 billion US dollars; followed by construction hardware, which was 4.34 billion US dollars. The export of taps was 2.23 billion US dollars, and the export of locks was 680 million US dollars. The countries with the largest 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 value of hardware products exceeded 5 billion US dollars, ranking third in the light industry export ranking. Due to the improvement of China's hardware manufacturing level and the expansion of production capacity, it is expected that China's hardware products will maintain a steady growth of more than 10% per year in the next five years. In the first 10 months, the import and export volume of China's hardware and electrical products exceeded US$500 billion. The surplus further expanded, reaching a total of US$7.06 billion, accounting for 64% of the national trade surplus during the same period.

The changes in the international hardware market provide a good opportunity for the export of China's hardware products. The production of hardware in China, Taiwan and Hong Kong in Asia is second only to developed countries in the world.

Second, the gap between China's hardware international market and the domestic market

With the addition of the WTO, China's hardware industry has achieved an important position in the world. China's hardware has a place in the world and is in line with global hardware leaders. Many world-famous hardware companies have entered the Chinese market. We will coexist with them for a long time, which undoubtedly creates absolute challenges and pressure for Chinese companies. At present, compared with the international market, the domestic market mainly has the following 10 major gaps:

1. Scale. The US hardware tools market has a market capacity of $40 billion. Such as the United States Schneider, is one of the S&P500 companies. Products include manual and power tools, automotive diagnostic and repair equipment, diagnostic technology and related products, widely used in automotive, aerospace and other commercial areas.

2. Strategic planning. The products of world-class companies often give people a very clear impression. Many of our hardware companies have diversified strategies and excessive competition. Many domestic manufacturers and brands are not prominent in their main businesses, and their core competitiveness is poor. Therefore, production companies must be professional and become leaders in product categories. Chinese companies are currently small in scale, and they are not eager to do everything, but should do the best for a class of products.

3. Brand. Foreign hardware companies that have entered China are well-known multinational companies in the world. They have good reputation and can provide users with quality products and perfect services. Chinese companies are more familiar with language and market, and they have a relatively good understanding of cultural needs. Therefore, it is more likely to establish their own brands.

4. Technology. At present, the design capabilities and level of multinational hardware companies and processing methods are higher than us. They all have advanced design reserves, and we lack both funds and technology.

5. Marketing management. At present, China's hardware management model has not yet embarked on a real agent, management experience, management tools, management talents are facing challenges; market management, price management, and promotion management are all at a medium or upper level.

6, channels. The demand for the Chinese market itself is growing, and many foreign companies are coming to China for production. They are more concerned about the Chinese market. Most Chinese hardware manufacturers are mainly based on the domestic market. However, the domestic market is undergoing changes. The traditional large-scale commercial associations, trade associations, Hualian system and power transmission system are all joints without economic relations, waste of resources, and high marketing costs of enterprises. China's hardware exports account for only a few percent of the total. Expanding overseas markets is only the beginning. It is necessary to go out and lack international talents and trade experience.

7. Scientific decision-making mechanism. Many people in China believe that foreigners do not understand the Chinese market. In fact, foreign manufacturers will use high salaries to invite Chinese localization talents, willing to spend money to buy information, establish effective information channels and quickly respond to decision-making channels, while China Hardware The response to the market often lags behind, and we often lack decision-making and delays in business opportunities.

8, service. Foreign hardware manufacturers are based on the laws of the country where they are based. They will never engage in a promised competition. The service is very standardized, not only does not pay money, but also has the ability to profit, and use economic means to promote the improvement of their service standards.

9, mechanism. Multinational companies have established modern enterprise systems with clear property rights and operational. Our traditional hardware manufacturing companies, even if they are listed, may have a strange circle, that is, enterprises with standardized operations, and more or less retain the traces and branding under the traditional management mechanism, because they are born out of the traditional mechanism. . Such mechanisms and traces restrict the performance of competitiveness.

10. Funds. At present, it is difficult for China's hardware manufacturers to get the funds. Even if they can get the funds, the scale is very limited. Some even operate in debt, and if they want to be close to the market, they will lack the ability to transform and the products will be on the same level. Therefore, the development of enterprises is difficult, and they are often forced to fall into price wars.

Experts predict that by 2020, the proportion of China's industrial added value to global industrial added value will increase from 5.72% in 2000 to more than 10%; the proportion of manufactured exports to global manufactured exports will be 5.22 from 2000. % increased to more than 10%. By then, China will have a number of powerful hardware manufacturing groups, forming a number of distinctive and internationally renowned hardware manufacturing centers.

With China's accession to the WTO, domestic hardware companies have gradually turned to foreign trade and even abandoned domestic trade to specialize in the development of the international market, and the international market is urgently needed. How hardware companies adapt to international trade cooperation, especially how small and medium-sized enterprises face the intricate international forms of international market development is particularly important.

(1) First of all, the individual ideology of enterprises has also been challenged as never before:

1. Constantly adapt to changes in the market. Whether in the initial bumpy period of entrepreneurship, in the booming period of business development, or in the evolving period of e-commerce after fierce competition, the ability to maintain optimism and accept new things is always available.

2. Cost awareness. Alibaba's integrity of the general 2300, earned 100,000 in two months, not only to recover the cost but also earned a lot. With the increasingly fierce market competition, the use of e-commerce to reduce costs is a winning means that many businesses can take.

3. Learn from the failures. Everyone enters the e-commerce field and will go through a detour more or less. Raising awareness of fraud prevention and doing business online more safely is a very important part.

4. Open the door to foreign trade. The biggest feature of e-commerce is fairness. Regardless of large enterprises or small enterprises, as long as the product quality meets the requirements and the integrity passes the test, they can participate in the market competition. Others will not be rejected thousands of miles away because of their distance and size. With the deepening of globalization, even Chinese can become an international language. Enterprises must constantly strengthen the professional knowledge of foreign trade personnel, including language knowledge and trade to continuously expand your knowledge and competitiveness.

5. Personal development is closely integrated with the company's development. The personal development of the enterprise personnel and the improvement of their quality are closely related to the development of the company.

(2) E-commerce participation in international trade of enterprises

In 2005, how companies use the Internet to conduct e-commerce for international trade has become an inevitable trend of the times: first, let foreign customers know you through various channels; second, let foreign customers trust you. This takes time, requires more standardized quality management, and requires experience and talent in the international market.

1. The participation of e-commerce companies. As an intermediary to participate in the international trade of enterprises, to help them solve various difficulties in communicating with buyers, directly to make business commissions, then this is a leap for the e-commerce industry and the enterprise itself. Before the emergence of American Business Network and China's Alibaba, there was no e-commerce site for international trade in the world. Do a portal to copy yahoo! But international trade, specializing in B2B international trade between developing and developed countries, and this model can be used by US trading partners such as Mexico, Vietnam, the Philippines, and Indonesia. In China, using B-B for import and export, the biggest advantage is to expand business opportunities and at the same time save costs. Originally, American companies need to go through middlemen to buy Chinese products. Now they can directly inquire about relevant Chinese companies through the Internet, and they are likely to find new demands. Chinese companies as sellers can also directly find new buyers through the Internet, and the business opportunities are expanded. The volume of international trade has increased substantially. As far as China's reality is concerned, most SMEs are accustomed to trade with middlemen and are not familiar with intermediate links such as transportation and foreign exchange adjustment. If the foreign buyer is also a small business, an intermediary is needed to assist in this part of the intermediary business. Some companies do not understand English, they need to help bargain, do all kinds of import and export procedures. It is very difficult for these companies to report to the customs and find transportation companies and insurance companies.

2. Government support. Further expand the company's vision, broaden the sales of hardware products in the international market, strengthen the government's service functions, provide enterprises with good "soft" environmental services, and often organize enterprises to "go global" and participate in domestic and international product exhibition activities. Through these exhibitions, companies can understand the market conditions at home and abroad, capture market dynamics, and actively seize market opportunities, so that the company's products will become more and more smooth in foreign trade exports.

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