How Hardware Companies Strengthen Market Competitiveness

With the continuous application of modern scientific and technological achievements in the industry, the competition in the hardware industry has become increasingly fierce. Whether you want to gain a firm foothold in which area of ​​the hardware industry, we must fully understand the development of the market.

Most of the domestic manual tool companies are mainly low-end products or OEM OEMs. High-end products and brand products are still controlled by European and American countries. As the profit margins of hand tools are all being compressed, the space for price cuts has been reduced. Companies cannot rely on price competition to establish their core competitiveness, and they should explore new development paths.

The hardware industry is an important part of China's light industry and is a booming industry in which a city is fully committed and is closely related to people's lives. According to relevant data, over 99% of enterprises in the industry are privately-owned small and medium-sized enterprises, mainly located in Guangdong, Zhejiang, Jiangsu, Shanghai, Fujian, Shandong, Hebei and other provinces and cities.

At present, the output of many hardware products in China ranks first in the world. Lighters, zippers, insulated cups, wrenches, pliers, zippers, knife and scissors all occupy a very large share in the global market, and their impact on the world's hardware industry is increasing. At present, there are more than 220 countries and regions in the world with the presence of Chinese hardware products, and China’s position as a major producer of hardware products has been established. According to Luo Baihui's survey data, the total output value of hardware products industry has reached 800 billion yuan. In 2005, it maintained a growth rate of more than 15% in 2008. In 2008, the industry’s total exports reached 50.3 billion US dollars, accounting for 40% of the total industrial output value. %, except for a 7% increase in 2007, it has previously maintained a rapid growth of 20%-30%.

However, since the fourth quarter of 2008, the century-long global financial crisis has had a huge impact on export-oriented companies. Overnight, the export orders disappeared. Some of the signed export contracts even paid the deposits and were returned on various excuses. Tools hardware, construction hardware, locks, knife and scissors, zippers and other industries are most affected by this crisis. Some people say that this is a battle without gun smoke, there is no real enemy in this battle, the real opponent is himself. Because many of our export companies are OEM-based and do not have their own brands and sales channels, our weaknesses have been fully exposed in this financial crisis.