Six major trends in the polarization of the hardware market
October 06 02:04:21, 2024
China's hardware industry will continue the momentum of structural adjustment, but at the same time there will be some bright spots. The polarization of hardware companies will intensify. Some enterprises that do not adapt to market competition will withdraw from the market competition through different channels, and the hardware giants will gradually surface. (I) Strengthening the status of the center First of all, in recent years, the export of hardware products has grown in an all-round way: the huge market and the centrality of gravity will further attract the transfer of manufacturing centers of hardware multinationals to China. The export growth rate of major hardware products is higher than the growth rate of production, which is higher than the growth rate of domestic market sales; the main hardware and electrical products are fully blooming, not only the growth of traditional export products such as power tools, hand tools and construction hardware products. The export growth rate of kitchen appliances and sanitary products with a high proportion of exports in the past was also very obvious in 2004. (II) The capital operation in the industry will become more active. It is expected that there will be no such many hardware companies that can truly survive in the market in the next few years. However, this high-speed shock in the hardware industry will bring huge opportunities, and the result of the shock will make the market operation more rational. The next few years will be the high-speed shock period of the hardware industry. The direct consequence of this high-speed shock is that the current trend of polarization in the hardware kitchen and bathroom camp is expanding. (III) The polarization of enterprises will be further intensified. In 2004, Supor and Vantage were listed on the market. Hongbao is also actively working for the listing. The operation of Wanhe’s capital market will not stop due to the failure of the restructuring of Yuemeiya. From the perspective of capital, the current main feature is the expansion of capital. From the perspective of competitive behavior, cooperation in resource sharing among enterprises is increasing. In a globally competitive environment, industrial capital is another theme of industry operation in order to gain a favorable competitive position and enhance competitiveness. (4) Market competition will shift from price-based to high-quality, high-tech products. Many hardware companies have increased their technical investment, developed new products with high technology content, and differentiated products as long-term development of enterprises. In this way, seek new market demand and establish new economic growth points (into small appliances and other similar industries) to achieve sustainable development. With the deepening of competition, the profit margins of all stages of the hardware industry chain are being compressed, and the space for price reduction is decreasing. More and more enterprises realize that price competition cannot establish core competitiveness alone, and it is not the direction of long-term development, so as to explore new development paths. (V) The sales channel will undergo profound changes. The domestic hardware and kitchen products are oversupply, the quality pressure is increasing, and the sales channel has become one of the key competitive factors. The competition for channels has become increasingly fierce. On the one hand, kitchen electric appliance manufacturers have strengthened their control over retail terminals, strive to reduce sales links, save sales expenses, and make sales channels develop in a specialized direction. The sales model of enterprises is developing in the direction of adapting to various markets at the same time. On the other hand, large retailers, with their broad market coverage, procurement scale and cost advantages, will increasingly control the production enterprises in terms of product pricing and payment delivery. The trend of the development of the sales industry has led to the rising status of large home appliance chain stores, enhanced control over the industry, and participation in price competition that was previously dominated by manufacturers. Gradually extend to the research and development of production processes and products, combining products with environmental protection, energy resources, and humanities. The requirements of the international market for China's hardware products will gradually evolve and change, and there will be higher requirements for the quality, packaging and delivery deadlines of Chinese products. (VI) The integration of domestic and foreign enterprises will be further accelerated. While continuing to expand the markets of traditional countries such as the United States and Japan, it will also bloom in Southeast Asia, the Middle East, Russia, Europe and Africa. In order to improve their own strength and expand the international market more quickly, domestic hardware companies will accelerate the integration with foreign companies through various means to improve product quality and enhance competitiveness. The export-oriented development of hardware manufacturing is characterized by obvious features. With the acceleration of China's integration into the global economic environment and the rapid rise of economic power, China has become the most dynamic economic region in the world. China's economic facilities are relatively complete, industrial development is relatively mature and labor costs are low, and it has the comparative advantage of becoming a global hardware manufacturing center.