China Cheng Hardware Manufacturing Center has obvious outward-looking characteristics

With the acceleration of China's integration into the global economic environment and the rapid rise of economic power, China has become the most dynamic economic region in the world.
China's economic facilities are relatively complete, industrial development is relatively mature and labor costs are low, and it has the comparative advantage of becoming a global hardware manufacturing center. The export-oriented development of hardware manufacturing is characterized.
The strengthening of the central position is first manifested in the overall growth of the export of hardware products in recent years: the export growth rate of major hardware products is higher than the growth rate of production, higher than the growth rate of domestic market sales; the main hardware and electrical products are fully blooming, not only The traditional export-oriented products such as power tools, hand tools and construction hardware products have a high growth rate, and the export growth rate of kitchen appliances and sanitary products with a small proportion of exports has been very obvious. The huge market and central gravity will further attract the transfer of hardware multinational manufacturing centers to China.
Capital operations in the industry will become more active In the context of global competition, industrial capital is another theme of industry operation in order to obtain a favorable competitive position and enhance competitiveness. Supor and Vantage have been listed, and Hongbao is also actively working for the listing. Wanhe’s capital market operation will not stop due to the failure of the restructuring of Yuemeiya. From a capital perspective, the current main feature is the expansion of capital. From the perspective of competitive behavior, cooperation in resource sharing among enterprises is increasing.
The polarization of enterprises will further intensify. The next few years will be the high-speed shock period of the hardware industry. The direct consequence of this high-speed shock is that the current trend of polarization in the hardware cabinet brand camp is expanding. It is expected that there will be absolutely no more hardware companies that can truly survive in the market in the next few years. However, this high-speed shock in the hardware industry will bring huge opportunities, and the result of the shock will make the market operation more rational.
Competition between channels is also increasingly fierce Due to oversupply of domestic hardware cabinet products and increased quality pressure, sales channels have become one of the key competitive factors, and the competition for channels has become increasingly fierce. On the one hand, kitchen electric appliance manufacturers have strengthened their control over retail terminals, strive to reduce sales links, save sales expenses, and make sales channels develop in a professional direction. The sales model of enterprises is developing in the direction of adapting to various markets at the same time. On the other hand, the trend of the development of the sales industry has led to the rising status of large-scale home appliance chain stores, enhanced control over the industry, and participation in price competition that was previously dominated by manufacturers. With its broad market coverage, procurement scale and cost advantages, large retailers will increasingly control their production companies in terms of product pricing and delivery.
At the same time, the requirements of China's hardware products in the international market will gradually develop 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 research and development, and the products and environmental protection. , energy resources, humanities and environment combined.
Market competition turns into competition for quality and technology. With the deepening of competition, the profit margins of all stages of the hardware industry chain are being compressed, and the space for price reduction is decreasing. More and more enterprises realize that price competition cannot establish core competitiveness alone, and it is not the direction of long-term development, so as to explore new development paths.
Many hardware companies have increased their investment in technology, developed new products with high technology content, differentiated products as a long-term solution for enterprise development, sought new market demand, and established new economic growth points (enter small appliances and Other similar industries) to achieve sustainable development of the company.
In order to improve their own strength and expand the international market more quickly, domestic hardware companies will accelerate the integration with foreign companies through various means to improve product quality and enhance competitiveness. While continuing to expand the markets of traditional countries such as the United States and Japan, it will also bloom in Southeast Asia, the Middle East, Russia, Europe, and Africa.
 

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