Two major reasons leading to oversupply in China's hardware industry

At present, the profits of hardware companies are gradually decreasing. First, because of overcapacity in the industry and oversupply in the market; on the other hand, homogenized products are flooding the market, lacking high-end products with high added value and humanized design. According to relevant research and research, in recent years, the development pattern of China's hardware industry is quietly changing. Before it was in short supply, it has gradually become oversupply, and there is a problem of overcapacity in the industry. Main reasons: First, because of overcapacity in the industry, oversupply in the market; on the other hand, homogenized products are flooding the market, lacking high-end products with high added value and humanized design. According to industry insiders, in the future, China's hardware export trend will be high value-added products to replace low value-added products. At the same time, the current development of the industry is tending to scale and diversification. In order to seek sustainable development, the industry transformation and upgrading, increasing technology investment and improving product quality have become the inevitable 2016 Uzbek Tashkent International Plastics and Rubber Industry Exhibition.

Question 1: Overcapacity

From the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products (referred to as the Chamber of Commerce for Electromechanical Industry), the current hardware industry in China has shown scale and diversified development, bid farewell to the past high-speed growth trend, and there is an oversupply situation. It is understood that China's larger hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces and cities. Such as Zhejiang Yongkang City, hardware and electrical production enterprise cluster, Shandong Linyi Hardware Market, Hangzhou New Century Locks Market, Shanghai Hardware and Electrical Trade City, Chengdu Jinfu Hardware and Electrical City, Guangdong Guangfo Hardware and Electrical City. At present, China's daily hardware products industry has entered the forefront of the world.

According to industry sources, the hardware industry has already bid farewell to the rapid development period of 10 years. With the deepening of competition among related enterprises, the profit margins of all stages of the hardware industry chain have been compressed, and the space for price reduction has been decreasing. At the same time, the requirements of China's hardware products in the international market have gradually changed. There are higher requirements for the quality, packaging and delivery period of China's hardware products, and even gradually extend to the production process and product research and development. According to industry insiders, most SMEs still had about 20% of profits a few years ago, and now profits have fallen below 10%.

Question 2: Brand miscellaneous, chaotic, and more

Looking at China's small and medium-sized hardware companies, most of them mainly produce parts, lack of independent brands, and homogenization competition is serious. Many enterprises lack bargaining power. Under the high CPI, high cost and new RMB exchange rate, the pressure is coming. The bigger. Under this circumstance, transformation and upgrading has become an inevitable trend of future industry development. The industry expects that the new changes in China's hardware exports will be the growth of high-tech products. The original low-value-added hardware products will be replaced by a number of high-value-added export products with high technology.

Development status: increase investment in technology, create independent brands, and transform development models

It has been learned from the Chamber of Commerce of Electrical and Mechanical Industry that the construction of the hardware professional market across the country has basically formed a pattern of production-type and circulation-type, large-scale and medium-sized, comprehensive and single-type, which complement each other. Take Tianjin Hardware Market as an example, Tianjin International Hardware and Electrical City, Xinnan Road Hardware City, North Hardware City and Zhujiang Hardware City four major hardware professional markets, annual sales totaled more than 20 billion yuan. The diversification effect of these four markets not only gathered more than 60% of hardware merchants in Tianjin, but also introduced well-known brands at home and abroad into the Tianjin market, forming one of the largest hardware industry wholesale bases in northern China.

Relevant information shows that in recent years, 2016 European Die & Mould Exhibition in Düsseldorf, Germany has established 14 technology development centers such as zippers, electric shavers, stainless steel vessels, iron pans, blades and bicycle locks, as well as pressure cookers. 16 product centers such as electric shavers and lighters. At the same time, China has gradually become one of the major hardware processing countries and exporting countries. It is estimated that by 2014, the export growth rate of China's hardware and other related products will remain at 10%.

Experts said that if companies want to win in the competition, they must do the following three things: First, to ensure the quality of products, this is the lifeline of the enterprise; Second, to clarify the needs of consumers, to develop their own characteristics to meet consumer demand. Products; the third is to strengthen their own management, regardless of size, companies must get rid of the extensive development model.

Editor in charge: Liu Jiehui