Just after the Spring Festival, the Jiangsu Hongbao Company's production workshop is busy and workers are working overtime to make orders. Zhu Jianfeng, chairman of Jiangsu Hongbao Hardware Co., Ltd., took out a new “Home and Life” booklet and proudly told the author: “This is our newly developed household product series. At present, we have developed ten series of nearly 100 kinds of products. The order was too much to do.” This is a busy scene after Hongbao’s adjustment and transformation.

Jiangsu Hongbao Hardware Co., Ltd. is a company that manufactures tool hardware. There are many types of pliers, wrenches, carpentry tools, cutlery knives, various scissors and forgings. The company has the right to import and export, more than 90% of tool hardware products are exported by OEM, and the export of clamp products accounts for more than 10% of domestic similar products. The world's top hardware tool sales and manufacturers such as Stanley, Danaher, Wal-Mart, etc., have purchased directly or indirectly from the company. In recent years, Hongbao has been focusing on the transformation and upgrading of enterprises, accelerating the cultivation of independent brands, and creating a “home-life” brand, which has added tremendous momentum and vitality to the development of Hongbao.

The development mode of large-scale and large-scale manufacturing has helped Hongbao grow from small to large, and the company’s strength has gradually increased. However, the embarrassing situation of Hongbao hardware has made Zhu Jianfeng not a taste. “A kind of high-end tool pliers produced by Hongbao on the market was cited by Chinese hardware and kitchen and toilet as 'filling the gap of domestic high-end tool pliers by importing foreign famous brands' The price of the product is only 25 yuan, but the same product, Japan's 'Ma' card (the world famous trademark) unit price is as high as 60 yuan. No brand, the company to do bigger, but also ultimately for others to make a wedding dress."

In 2008, the international financial crisis made Hongbao, which is mainly export-oriented, feel an unprecedented chill. Zhu Jianfeng told the author: “In 2008, our tool hardware export costs increased by 66%. This is unprecedented. After the international financial crisis, foreign orders fell sharply. In the first half of 2009, the entire order decreased by 30% to 40%.”

The sudden international financial crisis revealed the drawbacks of the traditional development methods of the company and also strengthened the determination of Hongbao to establish its own brand. The abandonment of the brand tool hardware OEM model, another way to create its own brand, adjust the internal and foreign trade ratios, and become the domestic and international market walking on two legs is Hongbao's only way out of the international financial crisis.

Hongbao policy makers have long-term vision. Zhu Jianfeng and his team found that there is potential for the market demand for kitchenware, tools, and horticultural products for hardware tools and home life products. China's mid-to-high end fashion home furnishing market has huge room for development. In the process of OEM production for well-known overseas customers over the years, Hongbao has equipped with a set of good manufacturing equipment and testing equipment, and has trained a team that can develop and control the quality strictly.

In September 2008, Hongbao began preparations for “Home and Life”. The company accelerated the development and design of new products and incorporated modern and stylish home life elements into its hardware products. In April 2009, “Home-Life”, which was independently researched and developed and had completely independent intellectual property rights, was launched. It has received enthusiastic response and soon became a well-known brand for domestic and foreign fashion household items. Hongbao Hardware also began to gradually adjust its internal and foreign trade ratios. From the past pure export to domestic and international markets, it marked that Hongbao has taken a solid step in the journey from "Made in China" to "Created in China."

Looking forward to the “Twelfth Five-Year Plan”, Zhu Jianfeng is full of confidence: “through market practice, we have found that the domestic market is more vital than foreign markets. During the 12th Five-Year Plan period, Hongbao will integrate the three major elements of brand, R&D and capital. Build a development platform based on the Hongbao model for 'home-life' and strive to create a brand with 'home-life' as its core. Strive to make 'home-life' a domestic first-class home life in five years Brand."

"Home & Life" will rely on Hongbao's huge brand advantage, the pursuit of excellence, continuous innovation, and will become the new engine to drive Hongbao's development. Hongbao, a company that has created a unique development model, will surely burst out new vitality.

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