China's hardware industry cluster development analysis

As an industrial organization form, industrial clusters not only avoid the problems of high management costs and agency costs caused by “integration” and large groups, but also avoid the problems of high transaction costs and logistics costs caused by long-distance transactions. . In the eyes of customers, industrial clusters provide them with a convenient platform to shop around. In the view of enterprises, all the people in the industrial cluster are facing the nearest, many raw material suppliers and equipment suppliers, and can purchase various input products at lower cost, higher demand, and faster speed, including various Kind of social services and various human resources. This kind of nearest and preferred purchase is a competitive supporting supply chain relationship. It has both vertical integration (internal allocation) efficiency, and more extensive autonomy and selectivity.

The development of industrial clusters

The development of industrial clusters has its own laws and has a process of emergence, development, maturity, and decline. However, the development of industrial clusters is not entirely a spontaneous process, but will also be influenced by many factors, especially the development of related industries, changes in market demand, and government policies.

1. The accumulation of local industrial chains provides a solid foundation

The market is the main driving force. In terms of the emergence of China's industrial clusters, the overwhelming majority are gradually formed through the self-development of enterprises under the influence of market laws. Among them, the industrial cluster of the Pearl River Delta in Guangdong is an outward-oriented processing industry cluster driven by foreign direct investment. Wenzhou, Zhejiang Province is a special product industry cluster that is developed by local entrepreneurs and industrial and commercial enterprises, while Beijing’s Zhongguancun is based on an intensive national high. High-tech industrial cluster formed by science and technology resources. These industrial clusters are formed spontaneously driven by market forces. The local government only guides the emergence of the industrial clusters. Moreover, the main driving force for the development of historical industrial clusters is the market. Whether foreign or private, it is a good opportunity to seize China’s reform and opening up and make full use of the time when the market is constantly expanding and opening to deepen. Space agglomeration and industrial division of labor to form an industrial cluster and continue to grow and develop in it. For example, the Yueqing refinement and switching factory in Liushi Town, Wenzhou City, was a typical family workshop when it was founded in July 1984. It had only five employees and had an annual sales income of less than RMB 10,000. However, it seized the strong market demand and insufficient supply at the time. The opportunity to expand the market, and through emulation, derivative, by the end of the 1980s, Liu Town has produced more than 2,300 low-voltage electrical appliances, more than 9,000 home workshops, forming a huge industrial chain. These industrial chains then accumulate industrial clusters in places. With the continuous expansion of enterprises and the increase in brand awareness, these industrial clusters provide a solid foundation for Chinese brands to go abroad.

2. The government boosts the development of industrial cluster brands

At the beginning of the formation of China's industrial clusters, it was basically the self-distribution of enterprises, but after the emergence of industrial clusters, local governments often actively supported them and made important contributions to the development of local industrial clusters. The important role of local governments is mainly reflected in the following aspects: First, providing various preferential policies to attract investment and promote the development of enterprises. Local governments usually formulate corresponding preferential policies in terms of land and taxation, creating a relaxed environment for the development of industrial clusters. The second is to improve the infrastructure, optimize the investment environment, and increase the attractiveness of attracting investment. The third is to establish industrial parks, encourage enterprises to enter the park, and promote the process of industrial agglomeration and park development. The fourth is to establish a trading market and expand the market size. The fifth is to hold product fairs and trade fairs, expand external influence and market awareness, implement overall regional marketing, and create regional brands. The sixth is to guide and support the technological transformation of enterprises and promote the upgrading of product technology in industrial clusters. Seventh, it is to coordinate the combination of production, learning and research to create a steady stream of technological innovation capabilities for industrial clusters.

3. The capital game tends to alliance and competition

In the process of forming industrial clusters, resources are the key points that bear the brunt of it. However, in fact, when resources are shared within the industry chain, the game of capital power emerges. First, with the pressure of capital, with the further deepening of economic globalization, under the influence of capital, the inter-market competition among enterprises will increasingly move toward competition. Under the general environment of corporate restructuring and industry mergers and acquisitions, it is possible to form large industrial groups and industrial clusters. Secondly, in the market environment with subdivided products, the homogeneity of products will become a new bottleneck for the development of enterprises. Under the resonance of capital strength and corporate homogeneity, the formation of brands will be aggravated.

Most of the hardware industry clusters in China are in the process from development to maturity. There is still great potential for development. The speed of development and the quality of development are also affected by external factors. Therefore, it is very necessary for the government to grasp its development trend. Support. Luo Baihui, head of the International Mould and Hardware Plastic Industry Suppliers Association, said that China's hardware industry cluster will develop rapidly in the coming period, and will develop in a more professional, more market-oriented and more international direction and gradually move toward Mature, currently more prominent development trends mainly include the following aspects:

1. The economic scale of the hardware industry cluster is gradually expanding

One of the important reasons why industrial clusters have received widespread attention is their high growth. Most industrial clusters have strong growth capabilities. Due to the rapid economic growth in the country, the growth rate of China's industrial clusters has become more prominent. For example, "China's hardware products production base" - Xiaolan Town, Zhongshan City, Guangdong Province, hardware industry cluster has made rapid development in 20 years, 1985-2004, Xiaolan Town, hardware industry output value from 45.25 million yuan to 17.38 billion yuan The average annual growth rate reached 36.8%; the number of enterprises increased from 47 to 3,079 with an average annual growth rate of 24.6%; the number of employees increased from 4552 to 82,456, and the average annual growth rate reached 16.5%. The total output value of the tie industry cluster in Shaoxing Zhangzhou increased from 120 million yuan in 1985 to 5.4 billion yuan in 2004, with an average annual growth rate of 22.2%; the number of enterprises increased from 7 to 162, and the average annual growth rate reached 18%; The staff grew from 4383 to 20147 and the average annual growth rate was 8.4%. Although it is impossible to enumerate the growth rates of all industrial clusters one by one, due to the high growth capability of industrial clusters, the scale expansion trend is very obvious.

2. New Hardware Industry Clusters Continue to Emerge

After more than 30 years of development, China's hardware industry cluster has become a major driving force for economic growth in some regions and an important source of international competitiveness. It has played an increasingly important role in regional economic development. In the eastern coastal areas, while the original industrial clusters have continued to mature, the division of labor has continued to refine and new industrial clusters have emerged.

For example, Dongguan, Guangdong Province, mainly manufactures IT products, and gradually differentiates to form multiple professional clusters of hardware, plastics, and molds to support the electronic information industry and form an integrated IT industry cluster. At the same time, the phenomenon of local industrial clusters driving other industries and gradually forming new industrial clusters is also very common. For example, a number of apparel industry clusters in Zhejiang province have driven the Taizhou garment machinery industry cluster; Yongkang hardware industry cluster development has driven the development of the auto parts industry. In addition, the vast central and western regions draw on their experience in the southeastern coastal areas and are also working hard to develop in the direction of industrial clusters.