The next few years will be the high-speed oscillation period of the hardware industry. The direct consequence of this high-speed shock is that the trend of polarization in the current hardware and kitchen brand camp is expanding. It is expected that the hardware companies that can survive in the market in the next few years will definitely be absolute. Not so much now, but this kind of high-speed oscillation in the hardware industry will bring huge opportunities. The result of the shock will make the market operation more rational.
I. The status of China as a global hardware manufacturing center will be further solidified With the acceleration of China’s integration into the global economic environment and the rapid rise of economic strength, China has become the most dynamic economic region in the world. China’s economic facilities are relatively complete, and its industrial development is relatively complete. Being mature and low in labor cost, it has the comparative advantages of becoming a global hardware manufacturing center, and the outward development of hardware manufacturing industry has obvious features.
The strengthening of the status of the center was first manifested in the overall growth of hardware product exports in recent years: the growth rate of the export of major hardware products was higher than the growth rate of production, higher than the growth rate of sales in the domestic market; the major hardware and electrical products were fully developed, not only Electric tools, hand tools, and architectural hardware products have a large increase in the number of traditional export products.
Moreover, the export growth rate of kitchen electric products and sanitary ware products with a relatively small proportion of exports in 2004 is also very obvious. The huge market and central position attraction will further attract the transfer of manufacturing centers of hardware multinational companies to China.
2. The capital operation in the industry will tend to be active and the cooperation between enterprises will be significantly strengthened. In an environment of global competition, in order to obtain a favorable competitive position and enhance competitiveness, industrial capital is another subject of industry operation.
In 2004, Supor and Vantage came into the market successively. Hongbao was also working hard for the listing. Wanhe's capital market operation will not stop due to the failure to restructure with Yuemeiya. From a capital perspective, the current main feature is the expansion of capital. Intensified, from the point of view of competition behavior, the cooperation of resource sharing among enterprises is increasing.
Third, the sales channels will undergo profound changes, and competition among channels will become increasingly fierce. As the supply of domestic hardware and kitchen products exceeds demand, quality pressure will increase, and sales channels will become one of the key competition factors. The competition for channels among all parties will become increasingly fierce. On the other hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales cycles, save sales costs, and make sales channels more professional. The company's sales model has been able to adapt to multiple markets at the same time.
On the other hand, the development trend of the sales industry has led to the continuous rise of the status of large home appliance chain stores and increased control over the industry. Participation has led to price competition previously dominated by manufacturers, with large retailers relying on their broad market coverage and procurement. With scale and cost advantages, the ability to control production companies will be increasingly strengthened in terms of product pricing, payment of goods, etc. At the same time, the requirements of the international market for China’s hardware products will gradually evolve and change. The quality, packaging, and delivery period of Chinese products will be improved. All will have higher requirements, and even gradually extend to the research and development of production processes and products, combining products with environmental protection, energy resources, and the human environment.
Fourth, the market competition will shift from price-based to high-quality, high-tech products. With the deepening of competition, the profit margins in all stages of the hardware industry chain are being compressed, and the space for price reduction is decreasing. More and more companies Recognizing that price competition alone cannot establish core competitiveness, it is not the direction of long-term development, and efforts have been made to explore new development paths. Many hardware companies have increased their investment in technology.
Develop new products with high technology content, take product differentiation as a long-term plan for enterprise development, seek new market demand, establish new economic growth points (into small household appliances and other similar industries) to realize the sustainable development.
V. The integration of domestic and foreign enterprises will further accelerate the development of domestic hardware companies in order to improve their own strength and expand the international market faster. They will accelerate the integration with foreign companies through various means to improve product quality and competitiveness, and continue to expand the United States. At the same time as traditional markets such as Japan, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully bloom. In general, China's hardware industry will continue to maintain the momentum of structural adjustment, but at the same time there will continue to be some bright spots, hardware companies polarization will intensify, some companies do not adapt to market competition will exit the market through different channels of competition, and hardware giant Will gradually surface.