China's hardware industry giants emerged with specialized management to deepen the regional market

After years of ups and downs, China’s hardware industry has gradually matured and improved both in terms of network system construction, service platform construction, and professional large-scale market construction. However, with the continuous deepening of China’s accession to the WTO and the reforms, the status quo of the hardware industry has become increasingly unsuitable for the rapid development of the socialist market economy. This year, the State Council's "Several Opinions on Encouraging and Guiding the Development of Privately-Owned and Other Non-Public Ownership Economy" has brought unprecedented opportunities for development in China's hardware industry. From the perspective of market demand and capital market operation, hardware companies are regionalized. The form of grouping has become prominent. As large-scale enterprises continue to expand domestic and overseas markets, and strengthen cooperation between industries, and the industry is growing, the small and medium-sized enterprises in the hardware industry established during the transition period are struggling on the verge of life and death. . The internationalization of domestic competition and the internalization of international competition will continue to emerge as the characteristics of the hardware industry in China in the coming years.

1. Market branding is becoming more and more obvious

Nowadays, entering the major professional hardware markets, we find that the economical hardware products of various SMEs which previously occupied the major positions of major markets have lost the former halo, and the brand-name hardware products that originated “the wealthy” are flooded in major markets. On the container; coincidentally, previously hit in the various hardware markets and paving around the economy-shaped product advertising has also replaced the giant manufacturers of brand-name products. What caused the hardware market to make such a big change in just a few years? According to Luo Baihui, head of the International Die & Metals and Plastic Industry Suppliers Association, in recent years, due to the rapid development of the nation’s economy, people’s living standards have continued to change. To improve, the requirements for product quality and scientific and technological content are also increasing, from the previous economic and practical type gradually to the technology and brand. "Now to purchase products, regardless of individuals or groups, the first thing to ask is certainly not the price, but the product's brand, quality and product performance. In their words, 'price is not a problem, brand and quality is the key. ”

This poses a severe test for the survival of some small and medium sized hardware enterprises with low technological content and labor intensity. Where their outlets are, they are either a number of small enterprises cooperating to concentrate their strengths and expand their advantages; Processes and equipment, creating their own brand; either being annexed by large companies or closing down. This has made some large-scale enterprises more and more large, and some small and medium-sized enterprises are gradually struggling to withdraw from the history of the hardware industry. Luo Baihui said that the development of the hardware tool industry in China is still in the growth stage. The growth period will inevitably bring about a seemingly chaotic situation. Various brands will scream, brainstorm, and expand brand awareness. They are massive, but most methods are not suitable and the effect is not significant. There are many reasons for the Chinese hardware industry's situation. There are reasons for the company itself, and there are deep-seated reasons why the market economy system is still imperfect, the legal system is not standardized, and the market is not transparent. Such a situation for China's domestic hardware companies, a group of large-scale enterprises began to work hard to accurately find their own positioning, and strive to build the company's core competitiveness, achieve strategic development of differentiation, and achieve sustainable and healthy development.

Superstar listing, repositioning To become a leader in hand tools: Superstars have been at the forefront of the industry in terms of financial strength and R&D level through years of foreign trade accumulation. Last year’s successful listing made it possible for superstars to aggressively deploy their companies strategically in accordance with their understanding of the market. Their primary task was to quickly establish mature channels. The “boutique + hardware store” as an independent channel for superstars has far-reaching significance. . Through some measures, superstars are likely to quickly become the leader in China's local high-end tool brands.

Deli supermarket chain channel strategy to promote change: effective new channel strategy, both forced by the market, but also have the ability to actively find the meaning of effective positioning determines that it is in a very fierce competitive environment, companies must develop in the mode Innovation, so effectively thought of entering the third and fourth tier cities and rural areas, through the enrichment of product lines to achieve the transformation of the channel - to achieve 5,000 effective supermarket chain, such channels have been formed, effective advantages will exist for many years.

An Tuo from manufacturing to brand operation: An Tuo brand is widely known by the industry, that is, this year's event. As an extension of the Taiwanese company, An Tuo, the production capacity and quality control in the sleeve are the highest in China. The main reason for the brand operation in the domestic market is the market. However, Antuo has high-quality product quality control systems and research and development capabilities. The core issues have been solved for brand operations. However, they still face the problem of insufficient product lines and a lack of mature sales teams. In order to quickly grow to domestic high-end Brands must also solve a series of problems.

Jerger insists on innovation to seek differentiation: JJ’s corporate advantages have not yet been fully translated into competitive advantages in the market. JJ’s understanding of the domestic market and the firm’s adherence to the R&D and innovation path are market-oriented. The obvious advantage of Jiejie's advantage is the advantage of innovation, which is also outstanding in China. However, monotonous marketing methods in previous years led to the slow development of Jiejie. JJ Jie began to define himself as a tool system problem solving expert, using his own R&D advantages to provide customers with systematic solutions and find their own future development support points, which is worthy of recognition.

Rui Qi want to continue listing storms: Chinese power tools, local brands so far no one dare to stand up and say that he is the first brand, Rui Qi objectively have the advantage of becoming the first local brand. The Wu family hopes to become a leader in the field of power tools through the market, and this desire is extremely strong. However, it has not yet been listed, but it has brought a lot of gossip, which will certainly bring a lot of public relations issues to Rui Qi. If Ruiqi is successfully listed, it will soon open up the gap with other domestic brands and move toward the high end.

Stanley Capital operates and builds aircraft carrier with Black & Decker: As a model of foreign tool brands operating successfully in China, Stanley unexpectedly merged with the world-class brand of power tool, Black & Decker. This capital operation brought endless imagination to the world's tool industry. The advantages of consolidation are self-evident, and the advantages of product lines and channels are obvious. Stanley's measures to invest in building factories in China and to enter the auto industry are bright. Stanley and Starda's game, Stanley has begun to occupy some of the advantages.

All of the above listed companies are more powerful and they are all seeking breakthroughs. Among them, the listing of superstars is particularly eye-catching, because they directly go through the transition to the foreign trade model and can be described as gorgeous. The development of China's tool companies must have great actions to make it clear. Otherwise, the series of problems brought about by the inconsistency of differentiation will delay the upgrading of the industry. The emergence of giants is inevitable, in line with the laws of the market economy and the characteristics of industrial development. In 2011, we can already see some of the clues. We must wait to see the outcome. The pattern of China’s tool competition within five years will surely be clear. We will wait and see.

2. The trend of capital operation is more clear

After China's accession to the WTO, under the global competitive environment, in order to improve its competitiveness, industrial capital has become an important theme for the operation of the industry. In 2004, Supor and Vantage went on the market successively. Hongbao was also working hard for the listing. Wanhe's capital market operation will not stop due to the failure of restructuring with Yuemei. From a capital perspective, the current major feature is the expansion of capital. From the aspect of competitive behavior, the cooperation of resource sharing among enterprises is increasing. On the one hand, manufacturers have strengthened their control over retail terminals, striving to reduce sales links, saving sales expenses, making sales channels more specialized, and corporate sales models toward At the same time, it can adapt to the direction of diverse markets. On the other hand, the development trend of the sales industry has led to the continuous rise of the status of large-scale home appliance chain stores, increased control over the industry, and participation in the price competition that was previously dominated by manufacturers. Large retailers, with their broad market coverage, purchasing scale, and cost advantages, will increasingly control the production companies in terms of product pricing, payment, and delivery. As a subordinate small and medium-sized enterprise, it will be in a disadvantageous position in the competition under this trend.

At the same time, the requirements of the international market for China's hardware products will gradually evolve and change. There will be higher requirements for the quality, packaging, and delivery deadlines of Chinese products, and even gradually extend to the production process and product development, and the products and the environment , energy resources, and humanities combined. The huge market and central position attraction will further attract the hardware manufacturing center of multinational companies to transfer to China. The integration with foreign companies will continue to enhance the quality and competitiveness of Chinese hardware products. While continuing to expand markets in the United States, Japan, and other traditional countries, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom.

3, hardware and tools industry into the main force

With the continuous improvement of our country’s status in the world, more and more countries around the world are starting to use Chinese hardware products, which has stimulated the development of China’s hardware products to some extent. In recent years, with the acceleration of the global economic integration process, the Chinese hardware tool processing industry has gradually become the main force of the world's hardware and tool industry. The demand for hardware tools in some developed countries, especially in Africa, the Middle East and other developing countries, is increasing at a rate of more than 10% per year. Hardware tools are labor-intensive industries. As a hometown of hardware, Yongkang has become a gathering place for hardware tools with low-cost traditional competitive advantages.

However, since the beginning of the new century, with the accelerated pace of modernization of China's manufacturing industry, China's digital manufacturing technology has also achieved rapid development. The performance of some of these hardware products has reached or approached the international advanced level. This progress has effectively broken down the monopoly position of some imported hardware products in some fields and contributed to the standard competition in China's hardware market.

4. Polarization of enterprises further intensifies

Judging from the current state of development in the hardware industry, in the next few years, it will be the high-speed oscillation period of the hardware industry. The immediate consequence of this high-speed shock is the expansion of polarization in the current hardware brand camp. It is expected that the hardware companies that can really survive in the market in the next few years will definitely not be so much now. However, this high-speed oscillation in the hardware industry will bring huge opportunities. The result of the shock will make the market operation more rational.

With the deepening of competition, the profit space in all stages of the hardware industry chain is being compressed, and the space for price reduction is decreasing. More and more companies are realizing that it is impossible to establish core competitiveness based on price competition alone, and not the direction of long-term development, in an effort to explore new development paths. Many hardware companies have increased their investment in technology, developed new products with high technology content, made product differentiation as a long-term plan for enterprise development, sought new market demand, and established new economic growth points (into small household appliances and Other similar industries) to achieve the sustainable development of enterprises. Luo Baihui said that under the guidance of the "Twelfth Five-Year Plan", China's hardware industry will continue to maintain the momentum of structural adjustment, but at the same time there will continue to be some bright spots. The polarization of hardware companies will intensify, and some companies that do not adapt to market competition will withdraw from market competition through different channels. The hardware giant will gradually emerge, but it still faces many challenges.

First, the industry leader is not strong enough. Hardware tool industry, development tools, leading companies in the foreign market, market skills, the overall competitiveness of the industry, such as strengths are not clear;

Second, skill innovation can be weak. The hardware tool industry identifies only one and three centers of skill (development) in Hangzhou and Jiande.

Third, the market structure is too single. The important business of hardware tools comes from foreign trade orders, and exports are highly dependent on deposits. Under the influence of the economic crisis triggered by the international financial crisis, the export markets of these enterprises have shrunk sharply and constitute a serious threat to life development.

Fourth, the brand establishment is definitely lagging behind. Most of the hardware tools rely on OEM consumption, short-term reputation and center competitiveness.

Fifth, there is a shortage of public platforms. Even if there are hardware industry associations, industry self-regulation is still more difficult and the focus of the industry associations' development is still difficult.

5, the brand era needs ****

In recent years, hardware companies have paid more attention to the promotion of brand culture, allowing cold products to be integrated into people's rich and varied spiritual senses. Consumers in the hardware industry tend to focus more on fashion concepts. When selecting a certain brand, they no longer restrict themselves to meeting the needs of the use of product materials. They also hope to reflect their values, identity, taste, and taste. Therefore, many companies are making efforts in product design and image stores. In order to maintain the brand's enduring problems, peers learn from each other and most learners.

In the brand era, it is mainly to enhance its own product strength and brand marketing capabilities, such as Zhang Xiaoquan, Jiejie Tools, Stanley, Great Wall Precision, Hangzhou Superstar and other companies. At the same time, the competition focuses on their own strength. For example, in terms of product competition, Zhang Xiaoquan launched a new series of “Good Steel New Works” this year. Stanley created a new product AvantiCollection with a very modern spirit. Everyone wins with excellent quality, beautiful appearance, and profound cultural heritage. Loved it and formed a pattern of strong wrestling.

**** Specifically refers to the organization to avoid, or mitigate, the serious damage and damage caused by the crisis, so as to organizely and systematically learn, formulate and implement a series of management measures and coping strategies. Frequently concerned users of 360 and QQ trends, it is estimated at a glance that the "sympathy" cards thrown out by the two Internet giants. Starting from November 3, Tencent and 360 have respectively issued a "letter to the majority of QQ users", "Tencent wants users to uninstall 360360 will guarantee and QQ at the same time the normal use," Tencent apologized to the user, said incompatible 360 This is the lowest level of resistance; 360 has insisted that it is innocent, and both are trying to gain the sympathy of consumers with the mentality of the injured. Regardless of who is right or wrong behind the matter, from the point of view of the statement, it has not touched everyone's "Buddha's heart." Netizens are concerned about their own personal interests. Before the incident was over, netizens still maintained an onlooker attitude. They just hoped not to affect their normal use of the two tools. If the crisis really comes, hardware companies must not learn Tencent, Qihoo's ****, that is, be regarded as a crisis of credibility, unfair competition, etc., but also the prime minister will be able to prop up the ship, put the interests of enterprises aside, the first time Concerned about the interests of consumers. Because the consumer is God, it is the company's food and clothing parents.

When appropriate, we can learn from some of the ways in which the United States handled the "suicide pot" incident. I remember that in early May of this year, the United States had encountered the "quality door" of Zisha. In the first time after the incident was exposed, the United States admitted that the "natural zisha liner" was falsely promoted and retired the general manager position of the electric cooker pan branch. For products involving improper promotion, immediately stop production and sales, immediately recover and correct all improper publicity materials, set up a consumer consultation hotline, set up a return point, and accept consumer returns. Choosing the right **** can save the company's reputation. The prevalent quality of the hardware industry is the quality crisis. The slightest carelessness in handling can affect the survival of hardware companies. Once the problem occurs, it is courageous to take responsibility and take care of the rights of consumers in a timely manner so as to return the company to a “sunny day”.

6. To make policy more business model

Professor Li Xiaofeng of Henan University of Finance and Economics said at the (Zhengzhou) Midwest Hardware & Electrical Machinery Industry and Regional Economic Development Summit Forum: In the context of the rise of Central China, policies have played a very big role in driving companies to realize leapfrog development than ever before. More likely. Therefore, Cologne International (Zhengzhou) Hardware & Electromechanical City should pay more attention to its own business model in its later development and construction. It is suggested that in the development and construction of the Cologne International (Zhengzhou) Hardware & Electromechanical City project, Henan Bestest Real Estate Co., Ltd. should not only be a developer but also an operator, a unified investment, and a unified operation. Only in this way can a complete value chain of a commercial operation project be realized. To maximize the value of commercial properties.

7. Specialized management deepens the regional market

Tao Changwen, secretary-general of Shaanxi Federation of Industry and Commerce’s Hardware and Electrical Machinery Association, said that the restrictive policies for the development of the industry are more from the market. Some problems have been exposed in our western region. The root cause lies in the practice of laymen. Therefore, the development of the hardware and electromechanical industries in the Midwest must realize the management of this industry within the industry, and at the same time, it also needs specialization within the industry to advance with the times. Cologne International (Zhengzhou) Hardware & Electromechanical City can hold such a forum in the early stages of construction to learn from the country's successful experience. This shows the team's professionalism and operational ability. I believe this market can be developed and built very successfully.

Fan Yunchang, Secretary-General of the Shandong Hardware and Electrical Machinery Association, said that the construction of hardware and electrical machinery market is the first research. The Cologne International (Zhengzhou) Hardware & Electromechanical City project must pay attention to the local hardware and electromechanical operators and understand their actual needs. Whether or not the market can continue to prosper in the later period depends on continuation of services. In this regard, it is suggested that the combination of renting and selling in the later period of operations, on the one hand, can quickly recover the investment, and on the other hand, it can continue the later period of service. Only in this way can the Cologne International (Zhengzhou) Hardware & Electromechanical City truly realize the vision of radiating the Midwest and driving the overall prosperity of the hardware and electromechanical industries in the central and western regions.