Looking for the next stop Happy bathroom hardware

With the rising prices of raw materials and the continuous expansion of the consumer market, the market competition in the hardware industry is also increasing. The era of profit violence in the hardware industry is gone forever. Profits start to decline

Here we take the current steel price as an example. Steel prices rose by 100 yuan/ton in one day. In less than a month, the prices of various steel products rose by 300 yuan to 500 yuan per ton. The rise in steel prices has made it impossible for the steelmaking industry, which originally made less profits, to show its superiority. It has generally shown that profits can be almost zeroed and that the benefits of economic recovery are almost offset by an empty one.

Taking bathroom hardware as an example, the biggest cost of producing a tap product is the cost of raw materials. The current faucet products are mainly based on copper materials, and the price of copper is about 38,000 yuan/ton, according to industry insiders, raw materials. The cost accounts for more than 70% of the total production cost. According to the domestic gross profit margin of 30%, the cost price of a faucet is approximately 200 yuan.

2011 is the implementation period of the “Twelfth Five-Year Plan”. The mold industry has ushered in the spring, and general experts are optimistic about the development space of the mold. It was predicted that during the “Eleventh Five-Year Plan” period, the market share of China's mold industry will reach 120 billion Yuan. However, the reality is that because there are relatively few contacts in the high-end industries and foreign companies have received **, the profit margin is also very poor.

Many hardware and electromechanical companies, including bathroom hardware companies, are all good and bad, and they share the same low profits. Their comprehensive analysis is not exceptional:

1, there is no professional market cultivation

The general consumers' purchase of hardware products is the principle of proximity. They are purchased at a grocery store and a daily supermarket. This is closely related to the fact that the hardware industry has not cultivated a professional market.

The traditional hardware product distribution center is no systematic marketing strategy, and lack of related regional protection, stable price system is beyond discussion. Once the professional hardware market is formed and the market has strong supervision, the hardware companies that settled in can be guaranteed to be worthy of the name, forming the centripetal force of consumers' purchases, avoiding the production, the flocking of peers, and the phenomenon of blind purchases.

2, no comprehensive brand capacity

The general circulation of hardware products in the market is single, outdated, and with rough workmanship, even without brand protection, so that consumers can not be trusted.

According to relevant market surveys, 45.3% of hardware consumers use the brand as the primary demand for acquiring products when purchasing hardware products, which implies that it is even more difficult for unnamed brands to gain a foothold in the market. Brands are obviously a signpost in this era of complicated information. They can focus on their own unified management in order to help promote them.

3, foreign-funded enterprises snatch the market

A large number of hardware products in China are based on small workshops, especially the mold industry. Because of lack of professionalism and exquisiteness, many foreign-funded enterprises have an opportunity.

On the contrary, foreign mold companies mostly "small and special", "small and fine"; mold self-produced ratio of up to 50% or more, 70% of foreign goods mold. The proportion of large-scale, sophisticated, complex and long-life molds in the total domestic molds is only about 30%. More than 50% abroad. The ratio of imports and exports was 4.1:1 in 2003; the net import after import and export was US$1.03 billion, which is the country with the largest net import volume.

4, raw materials rose to the public's attention

Since the beginning of last December, the international copper price has repeatedly set a record high since it broke through 9,000 US dollars/ton. Shanghai

** Market data shows that the copper price rose by 32% year-on-year in six months, while the steel price rise for two consecutive months will continue into the first quarter of this year.

The mainstream brands of air conditioners, refrigerators, washing machines, range hoods, cookers, sanitary ware, sterilizers, and water heaters, etc., will gradually have a 5%-10% price increase. "Compared to the end of last year, the increase in raw material costs has caused production costs to increase by 5% to 8%," said Zhou Xiaotian, president of Hisense Kelon.

The rise in raw materials was a hardware development buzzword in 2010. By 2011, it has not diminished its thermal agenda. Raw material prices have also raised the prices of general products. At the same time, the net profit promotion space cannot be compared with the past.