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Overcapacity in the hardware industry, increasing technology investment is the key

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[Abstract]:
  At present, the profits of hardware companies are gradually decreasing. First, because of overcapacity in the industry and oversupply in the market; on the other hand, homogenized products are flood
  At present, the profits of hardware companies are gradually decreasing. First, because of overcapacity in the industry and oversupply in the market; on the other hand, homogenized products are flooding the market, lacking high-end products with high added value and humanized design. According to industry insiders, in the future, China's hardware export trend will be high value-added products to replace low value-added products.
  In recent years, the development pattern of China's hardware industry is quietly changing. Before it was in short supply, it has gradually become oversupply, and there is a problem of overcapacity in the industry. At the same time, industry insiders pointed out that the current development of the industry is tending to scale and diversification. If we want to pursue sustainable development, it is inevitable that the industry will transform and upgrade, increase technology investment and improve product quality.
  Overcapacity
  At present, China's hardware industry is showing scale and diversification, bidding farewell to the past high-speed growth trend, and there is an oversupply situation. It is understood that China's larger hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces and cities. Such as Zhejiang Yongkang City, hardware and electrical production enterprise cluster, Shandong Linyi Hardware Market, Hangzhou New Century Locks Market, Shanghai Hardware & Electrical <Class 2 = Trade City, Chengdu Jinfu Hardware & Electrical City, Guangdong Guangfo Hardware & Electrical City, etc. At present, China's daily hardware products industry has entered the forefront of the world. Relevant information shows that in recent years, China has established 14 technology development centers such as zippers, electric shavers, stainless steel utensils, iron pans, blades and bicycle locks, as well as 16 product centers such as pressure cookers, electric shavers and lighters. . At the same time, China has gradually become one of the major hardware processing countries and exporting countries. It is estimated that by 2013, the export growth rate of China's hardware and other related products will remain at 10%.
  The construction of the hardware professional market across the country has basically formed a pattern of production-type and circulation-type, large-scale and small-sized, comprehensive and single-type, which complement each other. Take Tianjin Hardware Market as an example, Tianjin International Hardware and Electrical City, Xinnan Road Hardware City, North Hardware City and Zhujiang Hardware City four major hardware professional markets, annual sales totaled more than 20 billion yuan. The diversification effect of these four markets not only gathered more than 60% of hardware merchants in Tianjin, but also introduced well-known brands at home and abroad into the Tianjin market, forming one of the largest hardware industry wholesale bases in northern China.
  Increasing technology investment is the key
  According to industry sources, the hardware industry has already bid farewell to the rapid development period of 10 years. With the deepening of competition among related enterprises, the profit margins of all stages of the hardware industry chain have been compressed, and the space for price reduction has been decreasing. At the same time, the requirements of China's hardware products in the international market have gradually changed. There are higher requirements for the quality, packaging and delivery period of China's hardware products, and even gradually extend to the production process and product research and development. According to industry insiders, most SMEs still had about 20% of profits a few years ago, and now profits have fallen below 10%.
  Looking at China's small and medium-sized hardware companies, most of them mainly produce parts, lack of independent brands, and homogenization competition is serious. Many enterprises lack bargaining power. Under the high CPI, high cost and new RMB exchange rate, the pressure is coming. The bigger. Under this circumstance, transformation and upgrading has become an inevitable trend of future industry development. The industry expects that the new changes in China's hardware exports will be the growth of high-tech products. The original low-value-added hardware products will be replaced by a number of high-value-added export products with high technology.
Experts said that if companies want to win in the competition, they must do the following three things: First, to ensure the quality of products, this is the lifeline of the enterprise; Second, to clarify the needs of consumers, to develop their own characteristics to meet consumer demand. Products; the third is to strengthen their own management, regardless of size, companies must get rid of the extensive development model.