How China Changes from a "Hardware Kingdom" to a "Hardware Powerhouse"

China is a big hardware country. This is already an indisputable fact. After more than 20 years of hard work, China's hardware industry has made great achievements. However, it is such a great hardware country with a thriving international share that only accounts for 3% of the world's $100 billion. A Chinese hardware component that has a production and export price of just $1 can be worth less than a foreign brand. Several times, dozens of times... All of this shows that China is not a hardware powerhouse. No matter whether it is scale, strategic planning, brand, technology, channels, scientific decision-making mechanisms, services, etc., there is a clear gap with the developed countries. In addition, foreign high-quality hardware products will be driven directly into China's hardware companies will face a severe challenge of survival.

In this context, Jiang Su, Jiangsu Province, received a message that inspired the hardware industry. A high-rise city with a scale of the entire East China Hardware City emerged there. This event in the Chinese hardware industry attracted several "Daqi" figures from the National Association of Industry and Commerce's Hardware Chamber of Commerce to Jiang Yan and met with the founders of Huadong Hardware City and local party and government leaders. Their conversation has only one content. That is how China has changed from a “Hardware Power” to a “Hardware Power”, and what role the East China Hardware City should play in this process.

Wu Shichuan (Chairman of All China Federation of Industry and Commerce Hardware Association):

Each year, China exports more than 10 billion US dollars worth of hardware products (excluding mechanical and electrical products in the concept of general hardware), but the profits it earns are minimal. This is a problem that China’s hardware industry is very concerned about, and also the Chinese hardware industry. The fundamental problem. At present, the original accumulation and wealth accumulation of China's hardware manufacturers have not yet reached a certain level. Therefore, it will take a long time to make the hardware industry bigger and stronger. I have visited a workshop in Taiwan that produces a tube head. A worker has a small piece of equipment. It produces 15,000 pieces a day and has an output value of nearly 200,000 yuan. The product qualification rate is above 98%. Their good texture is of course an important aspect, and gold content in technology is a dominant aspect. In order to improve the technological content and learn advanced foreign production technologies, we not only go out and communicate with the international community, but also this year we will strive to host the third largest hardware exhibition in the world at the door of China. During the National Day period, we have more than 3,000 booths at present. It was ordered by domestic and foreign hardware manufacturers. Through the platform of the exhibition, domestic chambers of commerce and foreign chambers of commerce, domestic hardware entrepreneurs face-to-face exchanges with foreign hardware entrepreneurs, and ultimately achieve the purpose of creating from China to China.

In the process of internationalization, we must deal with the challenges. We must first do our own thing, build a good platform, and integrate resources. East China Hardware City wants to build an international and domestic hardware procurement center, it should be a good platform. We feel that she is energetic, first of all because of its good location. The hardware industry surrounding Jiangyan is one of the largest hardware industry clusters in the country. The rise of East China Hardware City is a major contribution to the integration of hardware resources in Jiangsu and the development of the national hardware industry. Our goal is to pursue Taiwan in the first step and catch up with Europe and the United States in the second step, which is on an equal footing with the advanced level of the world and truly rounds the dream of our hardware power. In this regard, Huadong Hardware City must play a role and take a good lead to shorten the gap with the world-class level.

Mao Weiming (** Mayor of Taizhou, Jiangsu Province):

The hardware industry is the “protagonist” in Taizhou’s regional economy and is the best comment on Taizhou’s economic industrialization and innovation. Taizhou’s direction is to become a power city, chemical city, and medicine city. In this economic structure, the hardware industry and the related industries it occupies occupies a very important position. The East China Hardware City, as a new industry in the hardware industry, has also formed a radiation effect that also makes it a hardware industry chain. The core part, it can be said that East China Hardware City will play a great role in promoting Taizhou's economy and play a role in the development of Taizhou and even Jiangsu's modern logistics industry. Correspondingly, the advantages of Huadong Hardware City are further manifesting. The inside information that has just been obtained is that the country is interested in upgrading the Ningjingyan Expressway that crosses the territory of Jiangyan into a national-level radiation route. Jiang Yan is in traffic. The status will be greatly improved. In addition to the advantages of Jiang Yan and Jiang Yan, Jiang Yan will not only be the core of Jiangsu's geographical location, but also the core of the hardware industry.

Jianbin Lao (Executive Vice President of the All-China Federation of Industry and Commerce, Hardware Chamber of Commerce, President of the Guangdong Chamber of Commerce, Industry, Hardware, Machinery, and Electrical Manufacturers Association):

I was the second time to come to Jiang Yan. I didn't know anything about Jiangsu Jiangyan. After Huadong Hardware City settled in Jiangyan, I had a deeper understanding of Jiang Yan. It is critical to engage in market industry and logistics conditions. A few years ago, we in Guangdong had a comprehensive market and had more than 1,700 shops. However, we had recruited nearly two years of business and only recruited more than 150 households because of inaccurate positioning and inconvenient transportation. Later, this place passed through high-speed and railroads. The logistics conditions in this place have become very good. We have strived to set the hardware market as the hardware logistics base of Guangdong, and with the efforts of the local government, we have attracted a large number of hardware companies to settle in this market. Merchants suddenly became hot, and more than 1,700 shops were looted within a few months. East China Hardware City's advantages in terms of industry and logistics are far higher than those in Guangdong. East China Hardware City is the “East China Hardware Logistics Base”. Nearly 40 cities and towns are specialized in the hardware industry. The basis of the industrial chain has been It is quite large, and the transportation and logistics conditions here are indeed very unique and very superior. As a link, it will certainly have a boundless future.

Fu Lin (Executive Vice President of All China National Chamber of Commerce and Industry, Hardware Association, Chairman of Hong Kong Overseas Business Association):

China's exports of hardware products account for only 3%, not only the problem of scientific and technological content, but more importantly brand issues. The brand includes a lot of content, it includes service, reputation and so on. Reputation is golden, and honest business is fundamental. I am the general distributor of a Japanese company in the mainland. We especially talk about integrity. And some of our domestic companies, poor integrity, there have been counterfeit drugs, fake wine, etc., what fakes are, really sad. If we produce hardware products that don't carry people's brands, but sell them under their own brands, they can also be sold at the same price as OEM sales. Then our GDP does not know how much to turn over. So in this sense, what needs to be promoted is: Integrity wins gold. Here I would also like to talk about the bigger and stronger hardware industry in China. A major consortium involvement is a key factor. Japan’s Panasonic and Sony did not originally engage in electrical appliances, but they were a large consortium. After seeing the prospects for the development of household appliances, they all stepped in. Now it is almost universal. Someone asked me, as the international consortium entered China's hardware industry, Huadong Hardware City has not been acquired. Here I can clearly say: Impossible. Because East China Hardware City itself is a large consortium, it has already taken the lead.

Gao Wenguang (Vice President of All China Federation of Industry and Commerce, Hardware Chamber of Commerce, President of Tianjin Federation of Industry and Commerce Hardware Chamber of Commerce):

How to create China's own brand commensurate with the market is an issue that we urgently need to address. The quality of many of our hardware products and foreign brands is almost the same, even more than foreign products, but due to the lack of market creation and brand management capabilities, it has not achieved its due market position. With the entry of the WTO, a large number of well-known international brands will also be flooded into China. This is what we often call the "wolf." The wolf is not terrible. The key is that we must have a good chance to block it. The development of the production and marketing of China's hardware industry must conform to the international and domestic trends to internationalize, and use the new marketing system to stimulate the development of enterprises and create an international concept. At present, China's hardware products hardly beat international brands. Like Zhejiang Yongkang, although it enjoys a good reputation at home, it is still Zhejiang Yongkang, not China's Yongkang, and has not yet gone abroad. It is believed that after a period of hard work, there will be more and more brands of Chinese hardware products in the international community. It is hoped that East China Hardware City will make a fuss about this aspect and will focus on establishing the grand goals of the “Greater China” brand and contribute to the development of China's hardware industry.

Yan Yunyun (Vice President of the All-China Federation of Industry and Commerce, Hardware Chamber of Commerce, and Deputy Chairman of the Shandong Chamber of Commerce, Industry, Hardware, and Electrical Machinery Chamber):

One problem that cannot be ignored is that our hardware manufacturing companies must take national interests as their top priority and must not engage in unfair competition because of their own interests. China has a vast area, and the conditions for economic development in each region are quite different. The hardware industry also has obvious regional characteristics. At present, the Yangtze River Delta and Pearl River Delta have become China's fastest growing economic regions. In recent years, the Yangtze River Delta Economic Zone has become In areas where foreign investment has grown fastest, in this situation, the Jiangsu hardware industry has a huge advantage. This advantage can be maintained and enhanced through the expansion of the hinterland. For the other hardware industrial bases in China, first of all, we must first understand that there are relatively little known issues and that there is competition before development, but the development of hardware industry belts will inevitably adhere to the healthy competition among various industry bands, which will also benefit each The enhancement of the hardware industry in the region and the acceleration of economic growth.

Zhou Caibing (Chairman of Jiangsu Federation of Industry and Commerce Hardware Industry Chamber of Commerce, Chairman of East China Hardware City):

In 2002, I did not know that China has a city of Jiangyan. In a thorough market research, an expert survey report told me that Jiang Yan is the best hardware trading platform in Jiangsu Province. With the increasing shortage of water, electricity, and land resources in Zhejiang, southern Jiangsu, and other regions, the hardware industry in the Yangtze River Delta is shifting to Taizhou, Nantong, and other Central Soviet regions. Through years of development, Jiangsu has formed a hardware production circle centered on Jiangyan. Although it is a province of hardware supply and demand, the province lacks a hardware trading platform on the scale, and a considerable number of hardware products are traded in large-scale markets outside the province. In this way, on the one hand, Jiangsu's hardware products flock to other provinces. On the other hand, Jiangsu provinces also purchase a large number of hardware products from other provinces. This contradiction increases the cost of hardware manufacturers and distributors and weakens the competitiveness of Jiangsu's hardware products. Therefore, Jiangsu urgently needs a large-scale hardware trading platform to integrate existing resources and upgrade the level of the hardware industry. In order to start its own brand of East China Hardware City, we had this preparation as early as the beginning of the market. At present, we have registered 27 categories and trademarks of more than 380 products. Once the market is operational, we will take these brands out and release Huadong Hardware City as the East China Hardware Logistics Center, which has great potential as a first-class brand market.