Analysis of Five Development Trends Of China's Hardware Industry

- Dec 09, 2020-


With the continuous improvement of China's status in the world and the development and change of economic society, China has gradually become a major country in hardware processing and export in the world, and China has a broad market and consumption potential, hardware industry at present presents a new development trend, mainly reflected in the following five aspects.

One, hardware and tools become the main force

In recent years, with the continuous development of the economy, China's hardware tools processing industry has gradually become the main force of the world's hardware tools industry....Hardware tools are labor-intensive industries. As the hometown of hardware, Yongkang has once become a gathering place of hardware tools with its traditional competitive advantage of low cost.With the continuous improvement of China's status in the world, more and more countries around the world begin to use Chinese hardware products. The demand for hardware tools in some developed countries, especially in Africa, the Middle East and other developing countries, increases by more than ten percent every year, which stimulates the development of China's hardware products.

Second, technical investment to improve the quality

Market competition will shift from price - based to high - quality, high - tech products.With the deepening of competition, the hardware industry chain in each stage of the profit space are compressed, the space for price reduction is decreasing.More and more enterprises realize that price competition alone cannot establish core competitiveness and is not the direction of long-term development, so they make great efforts to explore new development paths.The integration with foreign enterprises will continuously improve the quality and competitiveness of Chinese hardware products.At the same time, the international market will gradually develop and change the requirements of China's hardware products, the quality of Chinese products, packaging, delivery time will have higher requirements, and even gradually extend to the production process and product research and development, the product and environmental protection, energy and resources, cultural environment combined.Many hardware enterprises increase technical investment, develop new products with high-tech content, take product differentiation as a long-term measure of enterprise development, seek new market demand, establish new economic growth points, in order to achieve sustainable development of enterprises.

Third, capital expansion intensified

Capital operation is active in hardware industry. In order to gain a favorable competitive position and improve competitiveness, industrial capital has become an important theme in the operation of the industry in the global competitive environment.In 2004, Supor and Huatia were listed successively, and Hongbao also made active efforts for listing. The capital market operation of Wanhe was not stopped due to the failure of reorganization with Yuemeiya.From the point of view of capital, the main characteristic at present is the expansion of capital in aggravate.From the perspective of competitive behavior, the cooperation of resource sharing among enterprises is increasing.

4. Enhanced cooperation among enterprises

From the perspective of competitive behavior, the cooperation of resource sharing among enterprises is increasing. On the one hand, the development trend of the sales industry makes the status of large household appliance chains rise continuously, and the control ability of the industry is enhanced, and the price competition which was mainly dominated by manufacturers is involved and triggered.With its wide market coverage, purchase scale and cost advantage, large retailers will have increasingly stronger control over manufacturers in product pricing and payment delivery.On the other hand, manufacturers strengthen the control of the retail terminal, and strive to reduce sales links, save sales expenses, so that the sales channels to the professional direction of development, enterprise sales model can adapt to the direction of the development of diverse markets.As the bottom of the small and medium-sized enterprises in this trend will be at a competitive disadvantage.

The development of the Internet and logistics has made competition more inclined towards the big market

With the reduction of logistics costs and the improvement of market scale, transportation costs are no longer a barrier to circulation, and diversified customer demands bring more opportunities and pressure to enterprises.