N types of short boards in the hardware industry development model

Looking at the history, the development of the hardware and electronic machinery industry is very fast. In the long river of hardware development, there are many episodes that are resistant to the past. It tells us that we can only grow in the weak if we can only proceed in twists and turns. In today's hardware companies face more and more specialized market demand, more and more intense competition, many early-developing hardware companies feel that the follow-up powerless situation, perhaps look back on history can give us some warnings and reminders.

Hardware Tools Industry Progress in the Five Indictments

The most shocking: the oldest hardware store closed

According to British media reports, in August 2010, the UK’s oldest hardware store with 480-year history closed down due to financial crisis and competitive pressure. The news came that the media was shocked and the hardware practitioners were shocked. It has been in business for nearly 500 years and has experienced 20 dynasties and 76 prime ministers in Britain.

This “Gil and Branch” opened in 1530 is the first hardware store in the history of England. At the time of creation, the British ruler was Henry VIII. Its pavement at Hay Street in Oxford is small, but it has a high reputation in Britain and has survived tough times such as the British Civil War, two world wars and the Great Depression. It has been operating for 480 years. The shop just started selling metal parts and later expanded the range to daily necessities.

At the moment when the legendary hardware store became a thing of the past, 48-year-old owner Victor Hunt explained that the global financial crisis and the inability to cope with market competition were the main reasons for this 480-year-old store to withdraw from the historical stage. Such an ancient hardware store finally failed to reach the financial crisis, which convinced the industry. In the same way, we are alerting our country’s hardware companies.

The most depressing: the export tax rebate was canceled

It is understood that the Ministry of Finance and the State Administration of Taxation have issued a notice a few days ago that starting on July 15, 2010, China will cancel 406 tariff lines for certain steel products, non-ferrous metal processing materials, some plastics and products, rubber and products, glass and products. Export refunds for goods. For the current export enterprises, "export tax rebate = profit" is already a consensus in certain industries. There was news of reduction in export tax rebates. This would not hurt. But now all canceled, for completely relying on the survival of foreign trade hardware companies, it is a fatal blow. The cancellation of export tax rebates means that business operating pressures have increased and export orders have decreased. The cancellation of export tax rebates deeply deterred hardware companies. However, it must be realized that although it may be affected in the short term, in the long run, it is even more a powerful push for companies to compete for international competitiveness.

Most bizarre: negative news win promotion

For the Chinese hardware industry, the listing has not been too great news. From Hongbao Hardware to Boshen Tools, more and more hardware companies are beginning to move towards the capital market. However, compared to the previous listed hardware companies, The road to listing is not smooth. It is reported that Ruiqi Tools has not only been questioned about the existence of related-party transactions, but also encountered problems such as unqualified product quality and poor employee benefits. According to the Shanghai Securities News, the Shanghai Bureau of Industry and Commerce, Gansu Quality Supervision Bureau, and Yinchuan Bureau of Quality Supervision have all reported on the company’s product quality issues. It is worth pondering that Rui Qi tools specifically mentioned the risk of product quality accidents in the prospectus submission, but the facts and related influences of the products listed as “unqualified products” by the industrial and commercial department were in the prospectus. No mention was made.

Today, the re-examination of Ruiqi tools has been qualified. From the controversial Ruiqi tools, we see that negative news makes Ruiqi tools earn more attention from their peers. If the negative marketing works well, it can also achieve the effect of publicity and promotion.

Most look forward to: transformation and upgrading is king

In the face of increasingly severe industrial competition, the hardware industry also recognizes that it must change the current industrial structure. From Shenzhen to Yongkang, China's hardware industry has set off an upsurge of transformation and upgrading. To this end, Luo Baihui, secretary-general of the International Mould and Hardware & Plastics Industry Suppliers Association, pointed out that hardware companies should increase technological investment, actively carry out independent innovation, develop new products with high technology content, and take product differentiation as a long-term development of the enterprise. In order to seek new market demand, establish new economic growth points to achieve sustainable development of the company.

As a manufacturing supporting industry, the hardware industry has the characteristics of many types of industry, miscellaneous, fine, and low entry barriers, which determine the majority of SMEs in the industry. At present, SMEs in the hardware industry in Shenzhen account for more than 99.6% of their total number of companies. The Shenzhen hardware industry market is dominated by the domestic market and indirect export markets, supplemented by direct export markets, accounting for 72.6% and 27.4% respectively. Exports are mainly concentrated in kitchen and bathroom hardware, tools, and micro-motors, while the domestic market is dominated by traditional daily use, architectural hardware, hardware products, and electronic tools; indirect export markets are mainly precision molds and hardware accessories. Tool equipment and other product categories.

Similarly, in Yongkang, the hardware capital of China, some people in the industry believe that if Yongkang Hardware can transform itself from a single manufacturing operation into a provider of hardware services such as logistics, design, and R&D, the process of turning craftsmen into waiters is also a process. Yongkang hardware phoenix nirvana process. Nowadays, how to get rid of the low-end OEM of the industry chain is the primary consideration for the transformation and upgrading.

The most helpless: Raw material prices are unpredictable

For the hardware industry, the increase or decrease in the price of raw materials largely affects the operation of the company. Among them, a large number of steel, copper and other raw materials demand. Especially since 2010, the price of raw materials has been rising steadily. The soaring steel prices have caused the originally meagre profits to almost zero. For an industry such as the hardware industry that relies heavily on raw materials, the rise and fall in steel prices all affect the nerves of the industry. When raw material prices become the norm, how does the hardware industry escape cost pressures? Luo Baihui, secretary-general of the International Mould and Metals and Plastics Industry Suppliers Association, said that companies should increase their awareness of risk, and they should always pay attention to the changes in macroeconomic policies and make relevant preparations. And take active measures to deal with the problems that arise. Raw material prices are bullish, steel prices and copper prices are rising. In addition, intensified peer competition, hardware companies how to highlight the encirclement? Many hardware companies in addition to always concerned about the dynamics of the policy, the price trend, but also from the perspective of low-carbon green development, such as adherence to waste recycling, this is a kind of A good way to reduce costs.

The drawbacks of the hardware industry development model

There are three kinds of hardware channel development models: (1) original hardware street, scattered street hardware stores; (2) professional hardware and electronic machinery market, including traditional and modern; (3) hardware chain supermarket operators, online store sales model . These three channel development models have certain drawbacks.

(1) The original hardware street no longer meets the development of the hardware industry and will definitely be eliminated.

At present, China's hardware distribution channels are mainly divided into three types: one is a demand-driven hardware store cluster, the other is a street-type distribution base for hardware and building materials, and three are modern hardware specialty markets and hardware chain supermarkets. Among them, the one-street distribution base for hardware and building materials has not been adapted to the needs of economic development and has gradually been upgraded and transformed.

Among them, Tianjin Nanma Road Hardware Market is a representative of a street-type distribution base for hardware and building materials. It has been prosperous since the early 1980s and has now been demolished and rebuilt. As a representative of the southwest hardware building street distribution center, Chengdu Shengzi Street has gradually been hand-caught by the Chengdu Jinfu Hardware and Electrical Machinery Market and Wan Guan Hardware and Electromechanical City since the end of 1990, and upgrading is inevitable. At the same time, a hardware street in Wuhan Autonomous Street metal processing, the background of the Muxiyuan hardware market, etc., is not an upgrade or relocation of a hardware building, and the once-prosperous hardware logistics channel has gradually withdrawn from the historical stage.

(2) The specialized hardware and electrical machinery market also has some drawbacks. Investment in hardware and electrical machinery market is also a big problem. How to attract investment? This is a problem in the hardware and electrical machinery market. With the relocation of northwest hardware tools and the expansion of the area, investment promotion has become a top priority. For consumers, finding a good shop is difficult, and how to find a good shop is also a big challenge for consumers. Difficulty in attracting investment and the difficulty of renting a shop form a sharp contradiction. This contradiction cannot be solved for a time. Traffic conditions are also issues that need to be considered in the hardware and electromechanical market.

(3) Online store sales, the channel model of operating a chain is a new model, small but large, with a wide sales area, but there are also some drawbacks.

The online shop has become more and more popular, but also because his starting point is low. Many people use the ah online shop as a platform for starting a business. We can often hear how much money a certain company has made and how much money it has earned. But I never heard that a certain XX has opened a shop that does not make money. Not because everyone makes money, but because you only care about people who make money on the Internet. Most of them are still not making money, so shop. Before you must be well thought out, don't blindly follow suit.

Channel construction is the key to an enterprise winning the market, and the channels under the homogenous market have a differentiated competitive advantage. Luo Baihui believes that manufacturers should try to avoid using the same distribution channels as their competitors. If competitors use and control traditional channels, manufacturers should use other different channels or channels to promote their products.