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, its industrial development is relatively mature, and its labor costs are relatively low. It has the comparative advantage of becoming a global hardware manufacturing center, and its outward-oriented development characteristics are obvious.

The strengthening of the status of the center was first reflected in the overall growth of hardware products' 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 The traditional export categories of electric tools, hand tools, and architectural hardware products have seen a large increase, and the export growth rate of kitchen electric products and bathroom products that previously had a relatively small share of exports was also significant in 2004. The huge market and central position attraction will further attract the transfer of manufacturing centers of hardware multinational companies to China.

Second, the capital operation in the industry will tend to be active and cooperation among enterprises will be significantly strengthened.

In an environment of global competition, industrial capital is another subject of industry operations in order to obtain a favorable competitive position and improve competitiveness. In 2004, Supor and Vantage went on 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 Yuemei. From a capital perspective, the current major feature is the expansion of capital. From the point of view of competitive behavior, cooperation in resource sharing among enterprises is increasing.

Third, business polarization will further intensify

The next few years will be the high-speed oscillation period of the hardware industry. The direct consequence of this high-speed shock is the expansion of the polarization trend in the current hardware and kitchen brand camp. It is expected that the hardware companies that can really survive in the market in the next few years will definitely not be so much now. However, this high-speed oscillation in the hardware industry will bring huge opportunities. The result of the shock will make the market operation more rational.

Fourth, profound changes will occur in the sales channels, and the competition between channels will become increasingly fierce.

Due to the oversupply of domestic hardware and kitchen products and the increasing pressure on quality, sales channels have become one of the key competition factors. The competition for channels among all parties has become increasingly fierce. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales, save on sales, 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-scale home appliance chain stores, increased control over the industry, and participation in the price competition that was previously dominated by manufacturers. Large retailers, with their broad market coverage, purchasing scale, and cost advantages, will increasingly control the production companies in terms of product pricing, payment, and delivery.

At the same time, the requirements of the international market for China's hardware products will gradually evolve and change, and there will be higher requirements for the quality, packaging, and delivery deadlines of Chinese products, and even gradually extend to the production process and product development, product and environmental protection , energy resources, and humanities combined.

Fifth, market competition will shift from price-based to high-quality, high-tech products.

With the deepening of competition, the profit space in all stages of the hardware industry chain is being compressed, and the space for price reduction is decreasing. More and more companies are realizing that it is impossible to establish core competitiveness based on price competition alone, and not the direction of long-term development, in an effort to explore new development paths.

Many hardware companies have increased their investment in technology, developed new products with high technology content, made product differentiation as a long-term plan for enterprise development, sought new market demand, and established new economic growth points (into small household appliances and Other similar industries) to achieve the sustainable development of enterprises.

Sixth, the integration of domestic and foreign companies will further accelerate

In order to increase its own strength and expand the international market faster, domestic hardware companies will accelerate the integration with foreign companies through various means to improve product quality and competitiveness. While continuing to expand markets in the United States, Japan, and other traditional countries, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom.

Overall, China's hardware industry will continue to maintain the momentum of structural adjustment, but at the same time it will continue to highlight some bright spots. The polarization of hardware companies will intensify, and some companies that do not adapt to market competition will withdraw from market competition through different channels, and hardware giants will gradually surface.

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