Hardware Market Development Trend Analysis

In recent years, the hardware market has embarked on a rapid and professional development path. Traditional channels still play an important role, especially in the secondary and tertiary markets. The traditional channels of the industry are presenting trends of scale, diversification, modernization, centralization, internationalization, and mainstreaming.

Development trend of China's hardware market First, large-scale China's daily hardware industry has entered the world. China has established 14 technological development centers including zippers, electric shavers, stainless steel vessels, iron pans, blades and bicycle locks, and 16 product centers such as pressure cookers, electric shavers, and lighters. The vast majority of these centers have now developed into the vanguard of the industry, and some have become the vanguard of the world and have achieved good economic returns. China has gradually become a major metal processing country and a major exporter. China has become one of the world's largest hardware manufacturers, with a vast market and consumer potential. At present, at least 70% of China's hardware industry is private enterprises, which is the main force for the development of China's hardware industry. In the international hardware market, developed countries in Europe and the United States have shifted their universal products to developing countries due to the rapid development of production technology and rising labor costs. They only produce high value-added products, while China has a strong market potential. Developed a major exporter of metal processing.

II. Diversification In the areas of trade, circulation, and export, we have a huge advantage in the wholesale market. The production of hardware products has prospered the market. The prosperity of the market has stimulated the production of products and created the interaction between production and market circulation. The construction has basically formed a reasonable combination of origin type and circulation type, large-scale and small- and medium-sized, comprehensive and single type, and complement each other. The overall layout of the hardware market specialized market is reasonable, the operating variety is complete, and the logistics flow is smooth. Taking the Tianjin market as an example, the four hardware professional markets of Tianjin International Hardware & Electromechanical City, New South Road Hardware City, North Hardware City and Zhujiang Hardware City have annual sales of over RMB 20 billion. The four hardware markets seek development in the competition. According to their different market positioning, their respective development models have been formed. The international hardware and electromechanical city in Tianjin city center adopts a comprehensive diversified business model. There are commercial stores in the electromechanical city, high-grade office buildings and star hotels, and hardware stores take the high-end route; North Hardware City features plumbing and solar wholesale markets. ; And Pearl River Hardware City is focused on the operation of decorative hardware tools. These four markets not only brought together more than 60% of the city's hardware merchant operators, but also brought ABB, Stanley, Bosch and other well-known domestic and foreign brands to Tianjin. Today, one of the largest hardware industry wholesale bases in northern China, a “hardware industry aircraft carrier” that integrates multi-functionality and professionalism is standing on the coast of the Bohai Sea. The future of the hardware market will grow from extensive to intensive. Branding, specialization, and scale will be the development direction of the specialized hardware market. The future specialized hardware market will show an irresistible momentum of development.

Third, modernization First, production enterprises have extended their scope of circulation. The new market trend of China's hardware industry is becoming more and more obvious. The rise of new channels has not only caused hardware manufacturers to face major issues such as re-positioning of traditional agents, distributors, and reconstructing cooperative relationships, but also has caused companies to face increasing challenges. The danger of falling next to market control. Second, the store has become an important development direction. The store has indeed great success. Huitailong relied on the franchise system from an unknown brand to the current industry-renowned brand. Third, e-commerce has become the mainstream of future development. The influence of e-commerce on the hardware traditional channels is increasing, and most hardware cities are beginning to seek to combine online e-commerce with the offline hardware market.

Fourth, centralized regionalization. China's hardware tools market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong, among which Zhejiang and Guangdong are the most prominent. In the east, there is the Shanghai Hardware & Electrical Commerce and Trade City, which is known as "China's Hardware First City", and Chengdu Jinfu Hardware & Electromechanical City, which has a large market such as the Wanguan Hardware and Electrical Machinery Market, in the west;" and the famous Guangdong Guangfo Hardware and Electromechanical City in the south; There are "China Hardware City" in Beijing, and "Yuhua Hardware & Electromechanical City" in Changsha. In addition, there are other large hardware and electrical machinery markets: "Jiangdong Jianghuai" "East China Hardware & Electrical City" and Wuhan, Hubei Province. The "Huazhong Hardware and Electrical Machinery City" currently under construction, Shenyang's "Tianhe Hardware & Electrical City", "Dalian Hardware & Electromechanical City" which Dalian has completed and opened to business, "Nanning Hardware & Electromechanical City" for ASEAN, and "Quanzhou Hardware & Electromechanical" for Taiwan city".

The eastern part of China has formed a large number of professional markets based on manufacturing clusters, ie, distribution and distribution centers for hardware and electromechanical products. Zhejiang Yongkang City has developed into a well-known distribution center for hardware products, relying on a long history of historical and cultural accumulation of hardware and a strong local hardware and electromechanical production enterprise cluster and government support policies. Shandong Linyi hardware market, relying on Shandong's strong manufacturing capabilities, facing the country's low-end customer groups, customers Yingmen. The new century lock market in Hangzhou borrowed the influence of one of the three major lock manufacturing bases in Zhejiang, especially the background of the “Locked Capital of China” Wenzhou lock industry, and created a unique market for specialty products.

Guangdong’s Guangfo Hardware City, with its strong manufacturing and huge spending power in the Pearl River Delta Region, has hit the licence of the National Logistics Association’s Hardware Chamber of Commerce, becoming a major attraction in the industry. Chengdu’s Wan Guan Hardware & Electrical City and the “Fuzhou State” Fuxi relied on the resources of the southwest region to play the “Hardware Electrical and Mechanical Logistics Center in Western China” brand, becoming the largest professional market in China characterized by consumer distribution centers.

Shanghai is expected to become the largest hardware exhibition center in Asia under construction. It is located in the Waigang Industrial Park, International Automobile City, Jiading District, Shanghai. The total construction area of ​​Hardware City is 1.5 million square meters, with a total investment of over 2 billion yuan. It is planned to be implemented in four phases. These include 1400 business rooms, 1,500 exhibition booths and more international exhibition centers, unique garden-style new warehousing logistics and distribution centers, various kinds of hardware boutique museums, large ecological parking lots, hardware industry areas, supporting living quarters and other advanced facilities.

Zhejiang Yongkang has always been known as the "hometown of hardware," and the Zhejiang people's awareness of market operations is quite strong, from the original hot pot products, stainless steel insulation cups to the popular scooters last year, brought them a rolling fortune. Guangdong will soon become the world's mold production center. At present, more than 6,000 mold companies have gathered in the surrounding areas of Shenzhen and the Pearl River Delta, and employ more than 100,000 people. It has held five consecutive South China International Die & Mould Exhibitions in Shenzhen, attracting more than 1,000 companies from 25 countries and regions. It is the most professional and internationally-standard mold industry exhibition in China today.

Central business district. In recent years, the competition among enterprises is no longer a competition between a company and a company, but it has developed into a competition between a company's supply chain and competitors' supply chains. As a new type of industry trend, characteristic circle economy is gradually being known by enterprises. Enterprises have tested the water economy of commercial circles one after another and provided an opportunity for the development of the industry. The hardware industry has also emerged a series of special business districts, attracting many hardware merchants to move closer to it. The development of hardware vendors to the hardware market is one of appearance. Hardware merchants gathered and developed into the hardware and electronic machinery market, which can expand the scale of business operations, increase the number of operations, create a hardware and electronics market concentration area, expand the influence of the hardware industry, and enhance the competitiveness of hardware companies. It is of great significance to build a business district with a unique hardware industry, which will shape the features of the hardware industry, increase the market share of the hardware, increase the vitality of the hardware industry region, and promote the deep development of the hardware industry zone.

V. Internationalization In recent years, China’s international trade in electromechanical products has shown an overall upward trend. Developed countries have shifted medium and low-end products to the Third World. Due to the rapid development of production technology and the high price of labor, developed countries have accelerated the transfer of medium and low-end products to the Third World, and they only produce some high-value-added products. DIY products become the new favorite in the hardware market. In recent years, with the ease of installation and maintenance of the architectural hardware products of developed countries in the United States and Europe, doityourself products and tools have been greatly welcomed by the market. At present, the international trade of electromechanical hardware products mainly relies on the annual Canton Fair. The establishment of the Beijing Dongba Electrical and Mechanical Hardware Market has the profound meaning of leading the domestic industry from domestic to international trade.

The low price is an important reason for the large market share of Chinese products. Chinese hardware products can still only dominate the low-end market and affect the mid-range market to a considerable extent. As the high-end market is controlled by European and American brands, Chinese products lack quality and brand advantages. Therefore, competition with the main features of price reduction is still concentrated in the middle and low grades. At present, the world's hardware manufacturing industry is being transferred to developing countries. German tool industry companies have more than 20 branch offices and representative offices in China. German imported products have high sales prices in China.

VI. Mainstreaming As a relatively small industry in the national economy, the development of the hardware market has increasingly become the pillar of local economic development and has become one of the main directions of government economic policy support. In 2008, in conjunction with the actual market development, Jinjiang City formulated “Several Opinions on Supporting the Prosperity of China's Umbrella Ware Hardware Market and Brings prosperity to the City”. The specific measures are as follows: The financial department combined “Several Opinions of the People's Government of Jinjiang City on Accelerating the Development of Business Circulation Industry”, The commercial and commercial enterprises that have settled in the market implement incentives; the state tax and local tax departments fully implement the system of real-time assessment of value-added tax, corporate income tax, and individual income tax. The business households that meet the conditions and basically have proper account records are all recognized as general taxpayers and are eligible for deduction. 100% deductible for conditional input invoices, reasonable expenses incurred by the company in relation to income obtained are deducted according to regulations, and relevant local statutory fees are charged or reduced according to the minimum standards; the industry and commerce authorities increase unlicensed operation of owners and counterfeit trademarks Strengthen crackdowns, public security, traffic police, fire control, transportation, administrative law enforcement, and municipal departments to strengthen the improvement of the surrounding environment, and improve supporting services such as financial credit, accounting intermediary, and logistics distribution; the municipal government supervision office and the efficiency office will strengthen follow-up inspections. Accept and handle complaints from business owners for infringement and ensure policies Shi implementation in place.