The hardware market is turning to the third-line market as a new safe haven

"Rising" sound behind the hardware business is increasingly difficult to do, the price of electricity is raised, raw materials rose, the overall cost of a serious excessive, exceeding the part of it is difficult to pass downstream. When the hardware profits are gradually compressed, many hardware vendors have realized the seriousness of the problem. In order to achieve long-term development, we must re-select new markets. In this context, the choice of a third-tier city as a safe haven has become inevitable.

The mainstream of the market has shifted to the third-tier market In the past five years, the construction of the professional market for the pan-family industry has gradually developed from the first-tier and second-tier cities to third-tier cities, from economically developed regions to non-developed regions. Judging from the current situation, the hardware market in the first-tier and second-tier cities has invested heavily, and the pace of transformation and upgrading is also relatively fast. In contrast, the size of the third-tier cities' hardware market is much smaller. Due to the large scale of the market in the first and second tier cities and the wide area of ​​influence, the impact on the existing market structure is strong. It is even more difficult for the third-tier cities to re-establish a market structure that focuses on themselves.

However, many first- and second-tier cities have a large number of household building materials markets, but their grades are not high, and they are mostly integrated markets. There is no professional and distinctive business model. This situation can easily lead to disorderly industry competition and restrict the development of the industry. In recent years, the traditional hardware store operations have been uneven and there have been many problems with product quality and after-sales services. After heavy consolidation, hardware brand stores have begun to appear in large numbers in first- and second-tier cities, and there is a trend toward third-tier cities. This marks the emergence of a higher-end, more complete sales system in the hardware industry, which has laid a good foundation for the development of the hardware industry in the third-tier cities.

At the same time, local companies in some third-tier cities have been favored. Although they do not have a gorgeous "packaging", they are particularly active and free in the vast hardware market. There is no "head-to-head bloody" dispute, and it has taken off "expensive" and more "born" childbirth. There are quite a few new born calves who are not afraid of the tiger and exude a powerful attraction to mainstream the market. Gradually introduce the three-tier market.

Market reshuffle favors the third-tier market The hardware industry differs from other building materials industries in that its products range from screws to locks, from pipe to steel. At present, the development of the hardware market in the first and second-tier cities is relatively mature, and there are considerable scales of hardware operations.

The hardware market development in the third-tier cities lags behind. With the development of the third-tier cities, hardware businesses in many third-tier cities are gradually on the right track, and then seek to develop multiple channels. However, in the process of “proactive agency” and “creating a facade” for many businesses, there are still many merchants whose sales channels are still blocked and stagnated in the traditional sales methods. For example, now is the era of the Internet, Internet marketing is gradually being adopted by large businesses, but many small and medium-sized businesses have not taken into account. Closed channels result in the loss of many opportunities to make new customers. The lack of self-restraint has weakened the ability of these small and medium-sized businesses to resist market risks. Once the market environment changes, it will be the most vulnerable. Therefore, it is urgent for many small and medium-sized hardware companies to expand sales channels and refine channel operations.

With the spread of the international financial crisis from the virtual economy to the real economy, China’s foreign trade exports have been greatly affected and hit by foreign markets. Many hardware business orders have shrunk sharply, and production and operations are facing serious difficulties. Not only the first-tier cities and second-tier cities, but also the third-tier cities. Many businesses seek transformation, exporting to domestic sales, and shifting their development focus to the domestic market. However, it is also very difficult for hardware manufacturers to export their products to the domestic market. There is a big difference between the domestic market and the foreign market. It is very different in consumption habits, aesthetics, and value orientation. It is difficult to establish a stable production and business model. Establishing your own brand is particularly evident in first and second-tier cities. Foreign customers pay more attention to factors such as cost and quality. In addition to dealers, customers in the domestic market are mostly direct consumers. They pay more attention to factors such as brand, product value, product style, and cost performance when they purchase goods.

In addition, in recent years, China’s economic development has been uneven, and the level of consumer demand has not been the same. The demand levels of consumers in first and second-tier cities have been relatively high, while the demand levels of consumers in third-tier cities have been relatively low. Unbalanced exports to domestic hardware merchants provide entry points into the market. Therefore, the rise of the third-tier market is a good news for hardware companies that export to domestic sales.

With the development of the country’s development of third-tier cities, the development of the third-line market in the hardware and building materials industry has become a general trend. With the shift of consumers in a large number of first and second-tier cities to third-tier cities, the demand for hardware and building products in the third-tier cities will gradually increase, and the three-tier market will gradually mature. Hardware merchants must grasp the good opportunity for the rise of third-tier cities, find a foothold in the third-tier market, stabilize the camp, and develop it again.