News Release
Analysis of the Current Situation, Development Trends, and Prospects of the Hardware Industry
Source:
Release time: 2023.06.05
China's hardware industry has maintained a high-speed development trend since the 1990s. After more than a decade of accumulation and steady growth, it has become an important hardware product country in the world and the world's largest producer. But it is undeniable that there is a big gap between China's hardware industry and the world's well-known hardware enterprises in many aspects, such as product research and development, innovation, brand management, marketing management, enterprise scale, financial strength, etc.
Against the backdrop of the international financial crisis, China's hardware industry, as a fundamental industry, is also facing opportunities and crises. The development of China's hardware industry has become a focus of attention. According to industry insiders, with the efforts of the entire hardware industry, the level of China's hardware manufacturing industry will significantly improve by 2010, and some enterprises are expected to reach international advanced levels; By 2020, China's hardware industry as a whole will reach the international advanced level.
This article analyzes the development trend of China's hardware industry based on the current situation and the development environment of the domestic and international hardware industry. It is believed that the development potential of China's hardware industry is enormous and the market prospects are broad.
Development status
1. With the rapid development of the construction and decoration industries, China's hardware industry has also experienced rapid development. According to statistics, in 2004, the total output value of China's hardware industry reached 250 billion yuan (approximately 30 billion US dollars), and the total import and export of hardware products reached 31.22 billion US dollars, a year-on-year increase of 35.36. Among them, the total export value was 24.132 billion US dollars, a year-on-year increase of 37.62; The total import volume was 7.088 billion US dollars, a year-on-year increase of 28.17%. Due to the improvement of China's hardware manufacturing level, expansion of production capacity, and strong economic growth momentum, China's hardware import and export will still maintain a high growth rate of over 30% in the coming years. The growth rate of export trade is higher than the growth rate of total output value, reflecting the improvement and enhancement of China's competitiveness in the international market of hardware products. The development of the hardware industry has prospered the market and met the needs of national construction and people's lives. The hardware industry is full of vitality and vitality, and its position and role in the national economy and social development are increasingly prominent.
2. The industry structure has undergone profound changes. The national construction hardware industry structure and enterprise structure have undergone profound changes. With the development of the building decoration industry and the improvement of people's living standards, emerging industries such as building decoration hardware, building stainless steel hardware, and safety and fire prevention hardware have rapidly developed. Through the rapid development of reform and opening up, private, joint-stock, joint venture, and foreign-funded enterprises, there has been a significant reduction in the number of national and collective enterprises. Private enterprises have become the main force in the hardware industry, and the pattern of departmental monopolies and regional blockades has been broken. The adjustment of structure and changes in mechanisms have greatly promoted the development of productivity, and a group of state-owned and collectively owned enterprises have added vitality through restructuring.
3. Through product structure adjustment and technological innovation, we have created a batch of competitive and high-quality products, including Beijing Sende Radiator, Guangdong Gunli, Security Lock, Wenzhou Wuzhou, Zhejiang Bomin, and other well-known products that compete domestically and internationally.
4. The gradual formation of specialized bases for product production, and the entry of market specialization into the development period, is an inevitable trend and concrete manifestation of productivity development. Hardware products are developing towards specialized bases. The development of the specialized hardware market is a symbol of the market economy and an inevitable product of the development of the market economy and the hardware industry. By 2002, China had 2500 comprehensive markets for building materials and hardware, specializing in the management of building decoration materials, with an annual transaction volume of around 200 billion yuan. The comprehensive booth style building materials and hardware market has entered a period of integration, gradually developing towards supermarket style, booth supermarket style, and specialization.
5. At present, there are shortcomings in China's hardware industry: the hardware industry is still at the lowest end of the global industrial chain; The quality of hardware products seriously affects the competitiveness of the hardware industry; The traditional emphasis on production and light circulation in China has led to a relative lag in the circulation and service industry of hardware products; In the international hardware market, there are very few independent hardware brands in China.
Development Trends and Prospects
1. China's position as a global hardware manufacturing center will further consolidate its economic infrastructure and gradually improve its industrial development, with relatively mature and low labor costs. It has a comparative advantage in becoming a global hardware manufacturing center, and the hardware industry has obvious characteristics of export-oriented development. The strengthening of the central position is first manifested in the comprehensive growth of hardware product exports in recent years: the export growth rate of major hardware products is higher than the growth rate of production, and even higher than the growth rate of domestic market sales; The main hardware and electrical products have fully blossomed, with a high growth rate in traditional export categories such as electric tools, hand tools, and construction hardware products. The huge market and central position will further attract multinational hardware companies to transfer their manufacturing centers to China.
2. Technological innovation will become the key to the development of China's hardware industry. China's hardware industry has begun to break away from the single form of traditional hardware, which holds a huge share. A group of materials and colors are combined, and functions and shapes are combined to develop towards humanization. Light, thin, short, and small hardware new products have become a fashion in the hardware world. And like manual tools, which use ergonomics and are bold and creative in design, the materials are exquisite, and on the basis of meeting practical needs, they also have artistic appreciation. However, from the perspective of hardware products and advanced technology at home and abroad, there is still a significant gap between China and foreign countries. With the deepening of competition, the profit margins of various stages of China's hardware industry chain are being compressed, the price advantage is becoming smaller, and the space for price reduction is decreasing. More and more enterprises are realizing that relying solely on price competition cannot establish core competitiveness and is not the direction of long-term development, thus striving to explore new development paths. Many hardware companies have increased their technological investment, developed new products with high technological content, and made product differentiation a long-term strategy for enterprise development. They seek new market demands, establish new economic growth points through technological innovation, and achieve sustainable development of the enterprise.
3. Sales channels will undergo profound changes, and competition between channels will become increasingly fierce. On the one hand, manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales costs, and develop sales channels towards specialization. Enterprise sales models are moving towards adapting to diverse markets at the same time. On the other hand, the trend of sales industry development has led to the continuous rise of the position of large chain stores, enhanced control over the industry, and participation in and triggering price competition previously dominated by manufacturers. Large retailers, with their vast market coverage, procurement scale, and cost advantages, will increasingly enhance their control over production enterprises in terms of product pricing, payment delivery, and other aspects. At the same time, the requirements of the international market for China's hardware products will gradually develop and change, with higher requirements for the quality, packaging, and supply period of Chinese products, and even gradually extending to the production process and product research and development, integrating products with environmental protection, energy resources, and culture.
4. The polarization of China's hardware industry will further intensify in the coming years, which will be a period of high-speed fluctuations in the industry. The direct consequence of this high-speed fluctuation is the expansion of the polarization trend in the current hardware brand camp. It is expected that there will definitely be fewer hardware companies that can truly survive in the market in the next few years. But this high-speed fluctuation will bring huge opportunities, and the result of the fluctuation will make market operation more rational and professional.
5. The integration of China's hardware industry with foreign enterprises will further accelerate. In order to improve their own strength and expand the international market faster, domestic hardware enterprises will use various means to accelerate the integration with foreign enterprises to improve product quality and competitiveness. While continuing to expand markets in traditional countries such as the United States and Japan, it will also fully bloom in Southeast Asia, the Middle East, Russia, Europe, Africa, and more. Overall, China's hardware industry will continue the trend of structural adjustment, but at the same time, some highlights will continue to emerge. The polarization of hardware enterprises will become increasingly severe, and some companies that are not suitable for market competition will exit the market competition through different channels, while hardware giants will gradually emerge.
In summary, the future development potential of China's hardware industry is enormous, and the market prospects are broad. Relevant hardware enterprises should bravely face challenges, seize the opportunity of global economic recovery after the international financial crisis, overcome their own shortcomings, strive to improve their own strength, and expand the international market faster. They will accelerate integration with foreign enterprises through various means, improve product quality, and enhance their international competitiveness.
This article analyzes the development trend of China's hardware industry based on the current situation and the development environment of the domestic and international hardware industry. It is believed that the development potential of China's hardware industry is enormous and the market prospects are broad.
Development status
1. With the rapid development of the construction and decoration industries, China's hardware industry has also experienced rapid development. According to statistics, in 2004, the total output value of China's hardware industry reached 250 billion yuan (approximately 30 billion US dollars), and the total import and export of hardware products reached 31.22 billion US dollars, a year-on-year increase of 35.36. Among them, the total export value was 24.132 billion US dollars, a year-on-year increase of 37.62; The total import volume was 7.088 billion US dollars, a year-on-year increase of 28.17%. Due to the improvement of China's hardware manufacturing level, expansion of production capacity, and strong economic growth momentum, China's hardware import and export will still maintain a high growth rate of over 30% in the coming years. The growth rate of export trade is higher than the growth rate of total output value, reflecting the improvement and enhancement of China's competitiveness in the international market of hardware products. The development of the hardware industry has prospered the market and met the needs of national construction and people's lives. The hardware industry is full of vitality and vitality, and its position and role in the national economy and social development are increasingly prominent.
2. The industry structure has undergone profound changes. The national construction hardware industry structure and enterprise structure have undergone profound changes. With the development of the building decoration industry and the improvement of people's living standards, emerging industries such as building decoration hardware, building stainless steel hardware, and safety and fire prevention hardware have rapidly developed. Through the rapid development of reform and opening up, private, joint-stock, joint venture, and foreign-funded enterprises, there has been a significant reduction in the number of national and collective enterprises. Private enterprises have become the main force in the hardware industry, and the pattern of departmental monopolies and regional blockades has been broken. The adjustment of structure and changes in mechanisms have greatly promoted the development of productivity, and a group of state-owned and collectively owned enterprises have added vitality through restructuring.
3. Through product structure adjustment and technological innovation, we have created a batch of competitive and high-quality products, including Beijing Sende Radiator, Guangdong Gunli, Security Lock, Wenzhou Wuzhou, Zhejiang Bomin, and other well-known products that compete domestically and internationally.
4. The gradual formation of specialized bases for product production, and the entry of market specialization into the development period, is an inevitable trend and concrete manifestation of productivity development. Hardware products are developing towards specialized bases. The development of the specialized hardware market is a symbol of the market economy and an inevitable product of the development of the market economy and the hardware industry. By 2002, China had 2500 comprehensive markets for building materials and hardware, specializing in the management of building decoration materials, with an annual transaction volume of around 200 billion yuan. The comprehensive booth style building materials and hardware market has entered a period of integration, gradually developing towards supermarket style, booth supermarket style, and specialization.
5. At present, there are shortcomings in China's hardware industry: the hardware industry is still at the lowest end of the global industrial chain; The quality of hardware products seriously affects the competitiveness of the hardware industry; The traditional emphasis on production and light circulation in China has led to a relative lag in the circulation and service industry of hardware products; In the international hardware market, there are very few independent hardware brands in China.
1. China's position as a global hardware manufacturing center will further consolidate its economic infrastructure and gradually improve its industrial development, with relatively mature and low labor costs. It has a comparative advantage in becoming a global hardware manufacturing center, and the hardware industry has obvious characteristics of export-oriented development. The strengthening of the central position is first manifested in the comprehensive growth of hardware product exports in recent years: the export growth rate of major hardware products is higher than the growth rate of production, and even higher than the growth rate of domestic market sales; The main hardware and electrical products have fully blossomed, with a high growth rate in traditional export categories such as electric tools, hand tools, and construction hardware products. The huge market and central position will further attract multinational hardware companies to transfer their manufacturing centers to China.
2. Technological innovation will become the key to the development of China's hardware industry. China's hardware industry has begun to break away from the single form of traditional hardware, which holds a huge share. A group of materials and colors are combined, and functions and shapes are combined to develop towards humanization. Light, thin, short, and small hardware new products have become a fashion in the hardware world. And like manual tools, which use ergonomics and are bold and creative in design, the materials are exquisite, and on the basis of meeting practical needs, they also have artistic appreciation. However, from the perspective of hardware products and advanced technology at home and abroad, there is still a significant gap between China and foreign countries. With the deepening of competition, the profit margins of various stages of China's hardware industry chain are being compressed, the price advantage is becoming smaller, and the space for price reduction is decreasing. More and more enterprises are realizing that relying solely on price competition cannot establish core competitiveness and is not the direction of long-term development, thus striving to explore new development paths. Many hardware companies have increased their technological investment, developed new products with high technological content, and made product differentiation a long-term strategy for enterprise development. They seek new market demands, establish new economic growth points through technological innovation, and achieve sustainable development of the enterprise.
3. Sales channels will undergo profound changes, and competition between channels will become increasingly fierce. On the one hand, manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales costs, and develop sales channels towards specialization. Enterprise sales models are moving towards adapting to diverse markets at the same time. On the other hand, the trend of sales industry development has led to the continuous rise of the position of large chain stores, enhanced control over the industry, and participation in and triggering price competition previously dominated by manufacturers. Large retailers, with their vast market coverage, procurement scale, and cost advantages, will increasingly enhance their control over production enterprises in terms of product pricing, payment delivery, and other aspects. At the same time, the requirements of the international market for China's hardware products will gradually develop and change, with higher requirements for the quality, packaging, and supply period of Chinese products, and even gradually extending to the production process and product research and development, integrating products with environmental protection, energy resources, and culture.
4. The polarization of China's hardware industry will further intensify in the coming years, which will be a period of high-speed fluctuations in the industry. The direct consequence of this high-speed fluctuation is the expansion of the polarization trend in the current hardware brand camp. It is expected that there will definitely be fewer hardware companies that can truly survive in the market in the next few years. But this high-speed fluctuation will bring huge opportunities, and the result of the fluctuation will make market operation more rational and professional.
5. The integration of China's hardware industry with foreign enterprises will further accelerate. In order to improve their own strength and expand the international market faster, domestic hardware enterprises will use various means to accelerate the integration with foreign enterprises to improve product quality and competitiveness. While continuing to expand markets in traditional countries such as the United States and Japan, it will also fully bloom in Southeast Asia, the Middle East, Russia, Europe, Africa, and more. Overall, China's hardware industry will continue the trend of structural adjustment, but at the same time, some highlights will continue to emerge. The polarization of hardware enterprises will become increasingly severe, and some companies that are not suitable for market competition will exit the market competition through different channels, while hardware giants will gradually emerge.
In summary, the future development potential of China's hardware industry is enormous, and the market prospects are broad. Relevant hardware enterprises should bravely face challenges, seize the opportunity of global economic recovery after the international financial crisis, overcome their own shortcomings, strive to improve their own strength, and expand the international market faster. They will accelerate integration with foreign enterprises through various means, improve product quality, and enhance their international competitiveness.