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  • NEWS
    2017-10-27

    Hardware market will expand in the future

    Core tip: China's hardware industry is in a major strategic development period, after the WTO era, people's living standard is changing from food and clothing to a well-off society, providing an unprecedented opportunity for the hardware industry.

    A financial crisis in 2008 to bring her storm, with the impact of the crisis and gradually spread from the virtual economy to the real economy, China's exports also suffer huge impact, many hardware companies rapidly in orders, production and management are facing serious difficulties in the situation, began to implement regression strategy.

    The domestic market has a bright future

    "We are already planning to return to the domestic market, although the development of the domestic market there are also many problems, such as product variety, quality, sales channel and consumer habits of different, but once developed, the potential of the domestic market is very broad." Zhejiang Yiwu a tool manufacturing company responsible person told reporters.

    Compared with overseas orders, open up the domestic market, early May will be difficult, north of Tianjin City Hardware Electrical Limited company chairman Chen Ying said, is the largest use of hardware factory, at present, about 80% of the world's production factories are located in Chinese. This means that for a long time to come, domestic demand for hardware will only increase and not decrease.

    According to statistics, in recent years, China's hardware industry to 20% per year growth rate of development, the annual total output value of 400 billion yuan, has become the world's largest country of output. However, one of the highest profit margins in the high-end market has long been dominated by foreign manufacturers, the domestic and foreign brand products in the price of this huge gap. It is understood that an ordinary 10 inch live wrench, the market price of China's products is about eight yuan; and the same quality, the same type of wrench produced by Switzerland in Shanghai market price as high as more than 100 yuan. Another example of 8 inch wire pliers, the current market is generally around six yuan, and a German production of the same quality and type of wire pliers, in Shanghai can sell 390 yuan high price.

    "Our goal in the future is to be deeply involved in the middle and high-end markets in China, and we're doing research." In the view of the tool manufacturer, due to the long-term export of foreign or OEM (OEM), many domestic enterprises in the product quality is very strong. "The key is to change the previous heavy production, light brand practice, strengthen brand management ability and enterprise image strategy consciousness, so that we will be able to achieve the market position, and through this industry winter."

    Four trillion industry opportunities brought by investment

    In its external environment at the same time, injected a shot in the arm ten launched the four trillion bailout investment and expand domestic demand and stimulate economic measures of the state plan, for the hardware industry. Among the ten measures, infrastructure construction has become one of the key points to further expand domestic demand. Especially such as speeding up the construction of affordable housing projects, strengthen the construction of the low rent housing support, accelerate shantytowns project, increase rural highway construction, and the hardware is directly related to the role of timely assistance, industry winter and recovery." The director of China market institute expresses the long iron student.

    Although some people pointed out that the construction of infrastructure and related hardware industry the highest degree of railway, road and airport, due to the construction of standard is too high, most of the current domestic hardware companies actually can not meet the requirements. "But we should look as much as possible in a long run, many enterprises on how to divide the cake at the same time, it should take this opportunity to support train. So, once the domestic demand and the economy are pulled, we have the ability to follow up immediately." In the Tower Industrial Trading (Shanghai) Limited General Manager Xu Kai view, although China's hardware industry faces many problems, but also facing a rare opportunity for development, China's hardware industry is a major strategic development period, the process of city, industrialization, modernization accelerated the level of people's life after the WTO era is changing from subsistence to well-off, provide opportunities for the development of the hardware industry is hitherto unknown.

    The national electrical hardware procurement alliance Secretary General Wang Ming also believes that in the global financial turmoil, although affected many export-oriented enterprises in the development, but not as long as the total export enterprises, as long as the timely change the mode of growth, to achieve industrial upgrading, is to survive. On the one hand, the government tries to stimulate domestic demand on the one hand, and on the other hand, it tries to relax its credit policy to smes. In this case, the domestic hardware enterprises must consider how to adjust measures to local conditions, adjust their own marketing direction according to the domestic consumer market, in order to successfully realize the transformation from foreign to domestic."

    Future competition will expand

    With the rapid rise of Chinese into the global economic environment to speed up the process and the economic strength, Chinese has become the world's most dynamic economic region, more and more foreign industry giants have vied for mechanical and electrical hardware China to market, from Danaher Grainger; from Metabo to China FESTO, as hardware power to attract the eyes of the world is a the fact that.

    "Who lost China, who has lost the world!" Xu Kai smiled and told reporters, as the famous brand of Italy technology, the tower began to research the Chinese market has been made for many years, the Shanghai branch has been established, is expected next year officially opened.

    Some people say that under the combined effect of domestic and foreign factors, the next few years

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