The development process of China's hardware industry is full of problems

Views: 2     Author: Site Editor     Publish Time: 2020-02-25      Origin: Site

Although the hardware industry as a supporting industry is not very eye-catching, it is a basic industry and an important part of the manufacturing industry. After years of development in China's decorative hardware industry, both in terms of industry size, industry influence and product technology content have achieved great development, occupying a place in the world hardware pattern. But the problems exposed by China's decorative hardware in its rapid development cannot be ignored.

There are more and more factories in the domestic decorative hardware industry, brands continue to move forward, the building materials market is full of stars, and hardware vendors are springing up. Obviously, the entire industry is already in an imbalance of production and supply that far exceeds market demand, so competition is fierce. What is even more worrying is that many manufacturers do not have innovative research and development capabilities and sustainable development strategies, but just imitate and copy. The product technology and style are almost the same. The homogeneity of the entire market is very serious. The business model is very simple and traditional. As a result, the hardware industry entered the Red Sea market and entered a vicious competition of prices.

At present, hardware manufacturers operate brands in the market in two modes: professional brands and system brands.

Professional brands generally refer to the production of more specialized factories to promote their core single products to the market. The advantages of this brand are more professional production, high cost performance, fast delivery, and strong R & D and innovation capabilities. However, the disadvantage is that the product line is relatively simple, and the advantageous products can be easily copied and weakened by peers. Furthermore, it can only occupy a wall in the dealer store for display. The brand image is difficult to improve, so the overall competitiveness is not strong and it is easy. Drowned in the cricket market.

System brand generally refers to a multi-category product combination brand. The product line covers a series of products such as door locks, supporting engineering hardware, handles, door control hardware, and bathroom hardware pendants. This brand usually uses a specialty store or shop-in-shop as the terminal sales form. The brand image is prominent, the product portfolio is perfect, and the products are matched with each other to drive sales, which basically realizes the customer's one-stop shopping needs, and can also solve the problem that engineering companies can The problem of purchasing from the same brand reduces multiple links for dealers to maximize the benefits of the store. At the same time, due to the huge product system coupled with the brand's personality and connotation, it is difficult to be copied by peers.

However, it is extremely difficult for such brands to operate successfully:

1. The vast majority of brand operators only produce their single core products or no factories. Other supporting products of other categories are directly selected from other factories for OEM, so most products lack highlights and selling points, and there is no differentiation. ;

2. High operating costs. Since most of the products are OEM, the price is not competitive, and the dealers are not confident in promoting the brand;

3. The inventory pressure is extremely great, and the OEM processing factory is not cooperative enough. Either there are too few varieties and styles, or there is often a shortage of goods and untimely delivery;

4. In addition to the core single product, other OEM products are difficult to update and launch new products in a timely manner

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