China's hardware industry should wake up

On July 9th, Stanley Black & Decker, a US-based company with a reputation as the king of hardware, held a new product launch event and officially announced that Baldwin, a high-end hardware brand, and Stanley Hardware’s new product line entered the Chinese market. Let Xiao Bian feel a bit about Stanley's entry into the Chinese market. Prior to this, Stanley's series of moves in China could not explain the wolf to the Chinese hardware market. Today, the conference confirmed that Stanley’s investment focus in the future is indeed in Asia. Let's take a look at Stanley’s 2010 developments in China:

On March 11th, Stanley, one of the US S & P 500 companies, held a grand unveiling ceremony and officially announced that the global R & D center established in Shenzhen, China was officially put into operation. This is Stanley's first global research and development outside the United States. center. Together with the US R&D Center, it becomes Stanley’s global key research and development base.

On March 10-12, Stanley debuted at the 17th China International Hardware Fair. In addition to the eye-catching yellow special decoration of Jin Gui, the car model made of wrenches was stunning.

After the successful merger of Stanley and Blackpool on March 15, 2010, STANLEY BLACK & DECKER's current size, personnel and strength have doubled compared to Stanley in 2009, with more product categories than competitors of the same category. The combined Stanley Black & Decker inherits a strong tradition of innovation and continues to commit to operational excellence.

On March 17, 2010, Stanley held a branding conference in Beijing. Mr. Chen Hongze, Stanley’s global vice president and president of Asia, announced the launch of professional racing tool “RACING” in the Chinese market.

On March 29th, 2010, the annual meeting of Stanley Dealer with the theme of “Integration • Growth 2010” was held at the Kempinski Hotel in Shenzhen. At the meeting, Zeng Guisheng, general manager of Stanley Security Asia, summed up the work of the past year, commended outstanding distributors, implemented new development strategies, released new products, and laid out a new year's action plan.

From July 8th to 11th, the 12th China (Guangzhou) International Building Decoration Fair (referred to as "Guangzhou Construction Fair") was held in the China Import and Export Fair Complex. During the exhibition, the United States Stanley Black & Decker, with its reputation as the king of hardware, held a new product launch conference in Guangzhou, officially announcing high-end hardware brands Baldwin and Stanley’s new hardware series entering the Chinese market.

At the end of 2009, Stanley Corporation and Power Tools Group Co., Ltd. jointly invested US$110 million to build the Stanley (Wenton) tool project. The first phase of the project invested US$48 million to build 20,000 square meters of workshops and ancillary facilities. It is understood that after the project is put into production, it will mainly produce clamps, scissors, and dual-purpose wrenches. It plans to produce 10 million pieces of these products each year and realize sales revenue of 350 million yuan. This will not only promote the development of the electromechanical tools industry in Wendeng, but also Stanley itself will have rapid development.

Stanley to expand the Chinese hardware tool market wolves?

For Stanley, the North American market is already relatively mature and its growth is relatively slow. It is very rare to maintain 1%-2% growth every year, while the Chinese market can basically maintain a growth rate of several tens of percent. Stanley will focus its investment in the future. Asia and China are wise. By participating in related exhibitions and starting high-profile brand promotion, these are some of the measures for corporate development. But for Chinese hardware companies, this is undoubtedly equal to the wolf.

For 10 years, Stanley has had an excellent performance compared with Standard & Poor's 500. It can be seen that Stanley’s stock has risen strongly by 97% while the S&P 500 index has fallen by nearly 21%. In the very long time Stanley will continue to Stay ahead. The acquisition of Black & Decker led to a significant increase in sales of Stanley, with sales expected to reach $8.8 billion in 2010, and the large amount of cash generated could be invested in high-growth regions such as China. Stanley invests in China to see what the Chinese hardware market? Where is China's hardware industry development shortcoming? If you do not correct the direction of development in time, it will undoubtedly be consumed by foreign brands.

The shortcomings of the development of China's hardware industry:

Although the domestic hardware industry's independent products have made great progress in recent years, and currently there are a large number of China's hardware industry, but in the development process it is inevitable that there are some defects, and the existence of these defects has become the reason for foreign companies to enter the domestic market.

First of all, the development of China's domestic hardware tools companies is still in short supply. Looking at the history of China's hardware industry, we started from the hands-on workshops after the liberation and gradually established a hardware industry based on state-owned, collective, and other publicly-owned economic forms. The hardware products basically achieved industrialized production, but overall, China’s hardware industry is still "Hardware" and "small commodities". The brand awareness of Chinese hardware companies is too bad, and most companies stay in the initial stage of OEM production and repeat production.

Second, the technological content of hardware tools in China is not high enough. Judging from the status quo of manual tools development, most domestic manual tool companies are mainly low-end products or OEM OEMs. High-end products and brand products are still controlled by European and American countries. Foreign hardware tools and joint venture brand products have adopted a large number of new technologies, new materials, and new processes. In contrast, the technological content of self-owned brand products is relatively low.

From the analysis of the development of the power tool industry, although most of the world's power tools are manufactured and exported from China, China has become the world's leading power tool supplier. However, while the power tool industry is developing, it has gradually exposed some problems. In particular, the reform of the scientific research and development system is progressing slowly, and the gap with foreign countries is obvious. The low foreign exchange earned from export products, the low performance level, the low selling price, the small scale of the company, the low degree of concentration, and the raw material price increase factors seriously restrict the further development of the industry. The improvement of quality.

There is also a huge market for auto maintenance tools in China.

The automobile industry is one of China's important pillar industries. After years of development, the automotive industry has achieved rapid progress. According to statistics, in 2009 China's auto production exceeded 13 million vehicles, which is the fastest growing and most important emerging market in the global automotive market. This means that China is rapidly advancing to the world's largest automobile production and sales country. Then, along with it, the auto parts supplies and services supporting the auto industry will also become a huge and fast-growing “golden” market. Stanley is a company specializing in the production of various types of tools, hardware and security products. Its products have long been widely used in various professional, industrial and public life areas in the world. In the face of China’s rapidly developing automotive industry, Stanley may have anticipated the huge market space and opportunities in China. Therefore, in a few months, a large amount of money has been invested in the construction of several projects, while production and management All of them are related to the automobile industry.

At present, the main competitiveness of hardware tools in the domestic market is still low prices. With the continuous improvement of the localization level of joint-venture brand enterprises and the further expansion of production scale, the cost will inevitably drop sharply, and the low-cost advantages of self-owned brand hardware products will become less apparent and face even greater challenges. Some multinational hardware companies are planning to introduce some medium and low-end tool products that have been successful in foreign markets into China. With the brand effect, stylish appearance and high-tech content, these economical hardware tools that are safe, environmentally friendly, and energy-saving will bring immense pressure to domestic brands' hardware tools. Only face up to the serious situation and their own gaps, take precautions, the domestic independent brand of Shanghai hardware tools can be invincible in the fierce market competition, to keep or expand their market share. Otherwise, there is a possibility of a loss.

In order to be invincible, China's hardware companies must constantly change, increase scientific and technological innovation, actively develop product certification, accelerate the technological transformation of enterprises, improve supporting measures, position the company for seeking truth from facts, and accelerate the pace of modernization... ... In this way, the overall advantages of the whole industry will be brought into play, and it will not be far from the era of the great rise of China's hardware and tools industry.