Domestic decorative hardware meets new challenges

With the outbreak of the US debt crisis and the European debt crisis, the global economy is experiencing high inflation and rising raw materials. China’s hardware companies are facing unprecedented challenges. Some companies directly choose due to the fact that they cannot afford the rise of raw materials and rising labor costs. The closure of enterprises is gradually changing the brand image of Chinese hardware products in the international market.

Although the hardware industry is a supporting industry, it is a basic industry and an important component of the manufacturing industry. Especially in recent years, with the rapid development of industry scale, industry influence and product technology content, it has occupied a place in the world hardware structure. . Of course, after all, China's decorative hardware industry started late, and the problems exposed in the rapid development cannot be ignored. As a result, China's decorative hardware is facing new opportunities and challenges in the new phase of industrial development and the sluggish global economic environment.

Firms with large scale in China's hardware industry, high brand awareness, innovative ability and new product development capability have stated that in the past 2011, the company’s efficiency was very good, even breaking the previous year’s sales volume, the lower the profit amount. The products they produce meet the supply cycle, production capacity, and product quality in the international market. They also have room to negotiate with foreign companies on prices, and have entered a better development track. Whether it is the domestic hardware market or the international hardware market, it has shown a tendency to tilt toward large companies and big brands, and this momentum will be even more pronounced in 2012.

Wang Xiaoguang, a researcher in the Department of Decision-making at the National School of Administration, said that the problems faced by SMEs in China in 2011 can be described in one word. That is difficult. Wang Xiaoguang analyzed that China’s long-term macroeconomic policies take the priority of growth instead of giving priority to employment. Under the guidance of such long-term growth priority policies, our private enterprises have become more difficult than before. At the same time, due to the low efficiency of SMEs, lack of credit, and weak resistance to risks, financial institutions are more inclined to give consideration to large companies in terms of costs, risks, and benefits. Under the current circumstances, if the government does not give special arrangements to small and medium-sized enterprises, the problem of hardship will become more and more prominent.

China's hardware has entered a virtuous circle of high quality, competitive prices and survival of the fittest. The industry is undergoing a new round of shuffling and the survival of the fittest. On the one hand, hardware companies will pay more attention to improving the added value of products by improving product innovation capabilities; on the other hand, hardware companies urgently need to use fine management to offset the impact of cost increases on corporate profitability. These two factors make manufacturing enterprises pay more attention to information construction on the one hand, and on the other hand, they also impose higher requirements on information products manufacturers' products, implementation and services. Therefore, it will inevitably lead to the survival of the fittest among manufacturers of manufacturing information. In order to achieve sustainable development, hardware companies must implement product innovation, management innovation and service innovation.