China's hardware industry brewing five changes

According to customs statistics, in 2010, the total import and export volume of China's hardware industry reached 74.923 billion US dollars. The year-on-year increase of 30.1%, of which exports totaled 57.51 billion US dollars, an increase of 31.4% year-on-year; total imports of 17.412 billion US dollars, an increase of 26%. For the outstanding achievements of the hardware industry, Shi Lanlan, executive vice president of the China Hardware Products Association, stated that in the downturn of development, the China Hardware Products Association guided the industry in adjusting its strategy, speeding up transformation and structural adjustment, and turning from export-oriented to “ Domestic trade, foreign trade, and domestic and foreign markets are both equal, and they continue to open up the domestic market. This positive effect has led to significant results, led to a comprehensive rebound in the hardware industry, in particular, showing an explosive growth in domestic sales, achieving a high growth rate of 27% of the industry.

Although China's hardware industry has achieved very good results in 2010, the "Twelfth Five-Year Plan" has higher requirements. The country puts forward the transformation of industries to low-carbon environmental protection, but how to make specific changes requires the industry and the enterprise to carry out in-depth thinking and deep-seated changes in light of their own conditions. Transformation is not a change of career, not from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, which is moving from the current situation to a higher level industrial model.

Shi Lanlan said that in recent years, according to the trend of the “Twelfth Five-Year Plan” and the requirements of the national industrial policy, the China National Hardware Association has extracted five major changes during the “Twelfth Five-Year Plan” period. This is the next five years. Hardware industry planning and promotion of the main direction and focus of work. The five transitions were introduced.

The first transformation: the transition from extensive to intensive.

Change the original status of small, multiple, weak and scattered industries, improve product processing capabilities, upgrade manufacturing equipment and processes, create brands, and take an intensive development path.

In the past 15 years of development, the hardware industry has basically taken the extensive development path. High-pollution, low-level, repeated labor, low-end product surpluses, and high-end product shortages have always existed, which not only caused waste of resources, The destruction of the environment also constrains its own development. Today, this growth model has come to an end.

The core of extensive transformation to intensive is to improve product processing capability and quality level, and take the road of independent innovation and independent brand development. The improvement of quality, the creation of own brands, channels, and the ability to independently innovate have become imperative, and the shift from extensive to intensive is imminent.

The second shift: from labor-intensive to technology-intensive.

Labor-intensive industries can also introduce modern electronics and IT technologies into the industry.

The faucet industrial design competition unveiled at the 2010 China International Hardware Fair is the start of industrial design and the demonstration and guidance for the entire industry to increase product technology content and added value. There are many varieties of hardware industry, each with its own characteristics, and take a technology-intensive approach. There is a lot of room for growth.

The third transition: the shift of quantitative expansion to qualitative improvement.

The status quo of product homogenization and low level of repeated work in the industry has not yet been improved, but everyone has begun to realize this problem. We must realize the transition from a big producing country to a strong producing country. We must overcome the current situation of too many low-end products and high-end products. At the beginning we mentioned that the import value of construction hardware in 2010 was US$4.99 billion, an increase of nearly 30% year-on-year. It can be seen that the market equivalent to more than 300 billion yuan has been occupied by foreign brands.

The fourth transformation: low cost, low price, high value-added, and high profitability.

At present, the construction hardware industry still has the current situation of low-price competition among peers and disrupts the industry. This kind of competition is completely a kind of harm to the industry, and the final result can only be lost. The positive example is the hood industry, which is an important product in the hardware industry. There has been no price war until now.

The architectural hardware industry must also analyze its own price characteristics, increase the connotation of its own brand, and create and promote the establishment of sales channels. It cannot be a solid hollow enterprise. To do more efforts in brand promotion, market hardware. At present, the domestic market is very mature, and the quality and taste of consumers have also been raised. Therefore, taking root in the domestic market, especially the high-end market, we can grasp the initiative and not be afraid of the impact of the crisis. At present, production costs, living costs, and social costs are all increasing, and product prices are also under great pressure. How to adjust also requires companies to make detailed plans.

The fifth change: Take the export OEM as the main focus to independent brands.

Paying attention to the domestic market is not abandoning the international market. Walking on two legs means that the domestic and foreign markets are both concurrent and parallel. However, as a key enterprise in the industry, a company that wants to be a hundred-year-old shop can stop OEMs. OEMs always take orders, production, and delivery. They know nothing about the domestic market, standards, and trends. This industry model completely dependent on each other is actually very dangerous and passive. Once customers change, Businesses are likely to fall into a complete crisis. Therefore, if you want to continue to improve products, companies, and long-term development, you must grasp the initiative of the brand and embark on a solid road to independent brands.