Mechanical Hardware Market Needs New Way Out

China has gradually become a major metal processing country and exporter in the world, and it has become one of the world's largest hardware manufacturers, with a vast market and consumer potential, but now the hardware and electronic machinery industry has experienced a decline in sales. On the surface, multinational companies have entered China and other changes in the external environment. Due to the fact that the hardware and electronic machinery industry has a low degree of concentration and competition in homogenization is serious, although there are more than 200,000 enterprises in the hardware and electronic machinery industry in China, there are not many companies with large output value, and high-tech and high-value-added hardware and electromechanical products. The proportion of companies is low.

Lan Xiaohua, a renowned brand marketing expert and a research fellow at the Chinese University of Hong Kong, said that China’s electromechanical hardware and stainless steel companies, especially growing companies, must be clear-headed and must firmly seize strategic development opportunities and establish a reasonable marketing strategy for themselves. On the other hand, there is only a road to extinction. Some of the hardware and electromechanical companies were quickly squeezed out of brand management and became major brand cooperative factories. Lan Xiaohua said that in the past decade or so, hardware and electromechanical companies have reached a compound annual growth rate of 30%, but now they are facing a completely new situation. "The existing orders are mostly passive, and we hope that the businesses that can take the initiative in the next two or three years will occupy 30% to 40% of the total, so as to survive." Ye Gui, secretary general of the Yangjiang Hardware Chamber of Commerce, said in an interview with the author that, in fact, this year The first half was better than expected and sales increased by 19%. But at the same time, he also revealed that since July, sales were not optimistic, and orders for October were lower than last year. According to current market conditions, he is not optimistic about the hardware market in the fourth quarter and 2013.

Hardware and electromechanical brands should no longer follow the trend, but must chase the popular elements while emphasizing the brand's own differentiated style. Lan Xiaohua suggested that companies should abandon short-term behavior and must adjust the company's strategic direction, organizational structure, and operating model to Overcome difficulties to achieve success. The future of the hardware industry lies in providing professional and personalized products and services. Enterprises need to form their own core competitiveness, fully embody differentiation, and increase investment in product research and development so that products can be truly accepted and loved by consumers. .

Zhu Renhe, chairman of the China Five Chemical Association, said that this year may be a difficult year, but next year will be more difficult, the industry has downward pressure, hardware and electromechanical companies must understand the situation, and actively seek change and prepare for the winter.