Under the drive of China’s economic expressway into the high-speed track, the hardware and electromechanical industry has ushered in rapid development. However, due to the low barriers to entry and investment requirements, family-style workshops are blooming everywhere. Excessive expansion of the market has led to disorderly competition among brands. In order to seize market share, companies are pushing prices down each Other, and small profits and more sales have become the only means. Analyst Luo Baihui said that vicious competition has caused companies' sales profit margins to be continuously compressed, and hardware companies and distributors have actually entered the era of meager profits.
In 2011, raw materials continued to increase in price, workers’ wages rose more than CPI, and small and medium-sized enterprises that lost their cost advantage began to complain. According to a brand of bathroom sales manager, the biggest cost of producing a tap product is the cost of raw materials, accounting for more than 70% of the entire production cost, according to domestic sales gross profit margin of 30%, then the cost of a faucet is about 200 yuan. However, the price of factory-made faucet products is about 20% lower than their price, and the cost price is about 135 yuan. The price is low and there are natural phenomena of cutting corners and materials. Haiyan, which uses fasteners as a traditional advantageous industry, now has more than 1,500 standard fasteners and related companies. Due to fierce competition among enterprises, product prices are too low, and dumping investigations have been initiated by the European Union. Xu Deren, vice president of the Haiyan Fasteners Merchants Association, believes that if a company can lower its own price, it can get a lot of orders, but it will cause other companies to suffer losses, and even affect the interests of the entire Haiyan fastener industry.
The vicious competition in the industry is likely to bring about a bad atmosphere in the entire industry. Ultimately, not only the company itself, but also the vast number of consumers are injured. Then, how can companies seek to achieve breakthrough success? Luo Baihui believes that the hardware industry needs to be standardized and reshuffled. If there are no standards, the development of the hardware industry will be extremely difficult. Therefore, it is crucial to increase innovation and develop brand.
Keywords: brand in the current hardware market, did not create their own "brand", the company's merchandise is very weak, basically no competitive strength, but will not have the added value companies dream of - high profits. China's hardware industry is low due to entry barriers, and home-plant enterprises are blooming everywhere. Their equipment, technology, and talent are relatively low-end and lack brand power.
Some business owners believe that: We are small businesses, nothing can be innovative, can not do very high-end, very environmentally friendly, it is more difficult to establish a brand. In this regard, Luo Baihui believes that hardware companies have to face difficulties, and they must be aligned with industry brands. With the intensification of the vicious competition in the hardware industry in recent years, the brand awareness of the company has begun to awaken and gradually recognize the importance of the brand for the long-term development of the company. More and more companies have incorporated branding into their strategic plans. Hardware companies that started late have paid special attention to them. They have increased brand awareness and reputation through online marketing, event promotion, and celebrity endorsement. Of course, this series of measures also enabled them to win the attention of consumers and emerge in the hardware industry.
However, it will take a long and difficult road to go from a world manufacturing country to a big brand country. Only by identifying the bottlenecks and breakthroughs that restrict the development of the Chinese hardware industry can we increase competitiveness. What China's hardware companies need to do now is to meet the needs of high-end industries and come up with excellent products to win market share. In other words, China's hardware companies must establish their own brands to win in the terminal market.
Keywords: Innovation Accompanied by the acceleration of economic globalization, China's hardware manufacturing industry to use the magic weapon to win in the international market - labor advantages, price advantages will come more and more from the third world national competitors, and increasingly With soaring energy prices, pressures on labor costs, *** appreciation, and power shortages, traditional hardware processing companies are experiencing “labor pains†in product upgrades and structural adjustments.
In the face of severe situations, hardware companies must choose self-help for long-term development, must pay attention to their own development, promote the adjustment of industrial structure of enterprises, and accelerate the upgrading and transformation of product structure through strengthening technology research and development and innovation. The most effective means of rapid development is to increase the market competitiveness of hardware products, accelerate the technological innovation of enterprises, and realize industrial upgrading and technology upgrading. Luo Baihui suggested that hardware companies must recruit talents, strengthen the research and development of the products needed by the hardware industry, rationally raise funds, and use limited funds for the development of new products, as well as technologies and skills related to the cultivation of core competences. Key equipment, etc. should increase investment. In addition, hardware companies should strengthen production process innovation, increase production technology levels, open “bottleneck†that restricts the company’s product innovation capability and enterprise technology level, apply new technologies to the company’s existing equipment in a timely manner, and extend its technical lifespan. Its effectiveness ensures the quality of the product at the source of production.
In 2011, raw materials continued to increase in price, workers’ wages rose more than CPI, and small and medium-sized enterprises that lost their cost advantage began to complain. According to a brand of bathroom sales manager, the biggest cost of producing a tap product is the cost of raw materials, accounting for more than 70% of the entire production cost, according to domestic sales gross profit margin of 30%, then the cost of a faucet is about 200 yuan. However, the price of factory-made faucet products is about 20% lower than their price, and the cost price is about 135 yuan. The price is low and there are natural phenomena of cutting corners and materials. Haiyan, which uses fasteners as a traditional advantageous industry, now has more than 1,500 standard fasteners and related companies. Due to fierce competition among enterprises, product prices are too low, and dumping investigations have been initiated by the European Union. Xu Deren, vice president of the Haiyan Fasteners Merchants Association, believes that if a company can lower its own price, it can get a lot of orders, but it will cause other companies to suffer losses, and even affect the interests of the entire Haiyan fastener industry.
The vicious competition in the industry is likely to bring about a bad atmosphere in the entire industry. Ultimately, not only the company itself, but also the vast number of consumers are injured. Then, how can companies seek to achieve breakthrough success? Luo Baihui believes that the hardware industry needs to be standardized and reshuffled. If there are no standards, the development of the hardware industry will be extremely difficult. Therefore, it is crucial to increase innovation and develop brand.
Keywords: brand in the current hardware market, did not create their own "brand", the company's merchandise is very weak, basically no competitive strength, but will not have the added value companies dream of - high profits. China's hardware industry is low due to entry barriers, and home-plant enterprises are blooming everywhere. Their equipment, technology, and talent are relatively low-end and lack brand power.
Some business owners believe that: We are small businesses, nothing can be innovative, can not do very high-end, very environmentally friendly, it is more difficult to establish a brand. In this regard, Luo Baihui believes that hardware companies have to face difficulties, and they must be aligned with industry brands. With the intensification of the vicious competition in the hardware industry in recent years, the brand awareness of the company has begun to awaken and gradually recognize the importance of the brand for the long-term development of the company. More and more companies have incorporated branding into their strategic plans. Hardware companies that started late have paid special attention to them. They have increased brand awareness and reputation through online marketing, event promotion, and celebrity endorsement. Of course, this series of measures also enabled them to win the attention of consumers and emerge in the hardware industry.
However, it will take a long and difficult road to go from a world manufacturing country to a big brand country. Only by identifying the bottlenecks and breakthroughs that restrict the development of the Chinese hardware industry can we increase competitiveness. What China's hardware companies need to do now is to meet the needs of high-end industries and come up with excellent products to win market share. In other words, China's hardware companies must establish their own brands to win in the terminal market.
Keywords: Innovation Accompanied by the acceleration of economic globalization, China's hardware manufacturing industry to use the magic weapon to win in the international market - labor advantages, price advantages will come more and more from the third world national competitors, and increasingly With soaring energy prices, pressures on labor costs, *** appreciation, and power shortages, traditional hardware processing companies are experiencing “labor pains†in product upgrades and structural adjustments.
In the face of severe situations, hardware companies must choose self-help for long-term development, must pay attention to their own development, promote the adjustment of industrial structure of enterprises, and accelerate the upgrading and transformation of product structure through strengthening technology research and development and innovation. The most effective means of rapid development is to increase the market competitiveness of hardware products, accelerate the technological innovation of enterprises, and realize industrial upgrading and technology upgrading. Luo Baihui suggested that hardware companies must recruit talents, strengthen the research and development of the products needed by the hardware industry, rationally raise funds, and use limited funds for the development of new products, as well as technologies and skills related to the cultivation of core competences. Key equipment, etc. should increase investment. In addition, hardware companies should strengthen production process innovation, increase production technology levels, open “bottleneck†that restricts the company’s product innovation capability and enterprise technology level, apply new technologies to the company’s existing equipment in a timely manner, and extend its technical lifespan. Its effectiveness ensures the quality of the product at the source of production.
Hengqu Metal Products Co., Ltd. , http://www.gzwiremesh.com