Comprehensive Interpretation: Status Quo of China's Hardware Industry

After more than 20 years of hard work, China's hardware industry has become a veritable hardware country. In recent years, the hardware market is the best market in the country's several major industry markets. At present, the largest pieces of hardware in the hardware industry are mainly concentrated in mechanical hardware, architectural hardware, decorative hardware, and daily-use hardware.

I. Status Quo of Chinese Hardware Enterprises

In previous years, the overall level of China's hardware industry was not very high, and there were many small and medium-sized enterprises. The start was relatively low, mostly for some small workshops; the changes in recent years were relatively large, and the first was the improvement of personnel quality, such as the largest number of buildings in China currently under construction in Beijing. The person in charge of China Hardware City, a hardware market, is a Ph.D. and postdoctoral person. The second is the improvement of craftsmanship and management. A factory such as Great Wall Precision Co., Ltd. already has a very high level of technology and management.

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At present, the level of domestic production processes is uneven, and many large foreign companies use China as their product processing base. Many international companies have entered the mainland market one after another. At present, it is the stage for the upgrading of China's hardware products, from the mid-to-low end to the over-production of high-end products. This is very beneficial to the development of China's hardware industry, in the process of the transfer of production of foreign products to the domestic, it will inevitably bring along some advanced foreign production processes and management models including raw materials.

From the traditional hardware point of view, the first is the tool, which is a rapid development of manual tools, hydraulic tools, and power tools. The second is the construction hardware and decoration hardware. The replacement speed is faster.

There is a great demand for hardware parts and components. Hebei Handan, a small processing plant, is lagging behind in production, and its sales force across the country has reached more than 100,000.

After more than ten years of accumulation and steadily increasing, China's hardware industry is now the world's largest producer, and exports have steadily increased each year. Among them, the largest export value is the tool products, up to 5.34 billion US dollars; followed by construction hardware, for 4.34 billion US dollars. The tap exports 2.23 billion U.S. dollars and the locks export 680 million U.S. dollars. The countries with the most exports are the United States, Japan, Europe, and South Korea. The annual export of China's hardware industry is growing at a rate of around 8%. Last year, the export volume of hardware products exceeded US$5 billion, ranking third in the export ranking of light industry. Due to the increase in the level of Chinese hardware manufacturing and the expansion of production capacity, China's hardware products are expected to maintain a steady growth of over 10% per year over the next five years. In the first 10 months, the import and export volume of hardware and electromechanical products in China exceeded 500 billion U.S. dollars. The surplus further expanded, totaling 7.06 billion U.S. dollars, accounting for 64% of the national trade surplus in the same period.

Changes in the international hardware market provide good opportunities for the export of hardware products in China. Hardware production in Asia, China, Taiwan, and Hong Kong is second only to developed countries in the world.

Second, the gap between China's hardware international market and the domestic market

With the accession of WTO, China's hardware industry has achieved an important position in the world. China's hardware has a place in the world and is in line with the global hardware leader. Many world famous hardware companies have entered the Chinese market. We will coexist with them for a long time, which undoubtedly poses absolute challenges and pressures for Chinese companies. At present, there are mainly 10 major gaps between the domestic market and the international market:

1, scale. The hardware tool market in the United States has a market capacity of US$40 billion. Such as the United States Schneider, is one of S&P 500 companies. Products include manual and power tools, automotive diagnostic and repair equipment, diagnostic technology and related products, widely used in automotive, aerospace and other commercial areas.

2, strategic planning. The products of world-class companies often give a very clear impression. Many of our hardware companies have diversified strategies, and there is excessive competition at the same time. Many domestic manufacturers and brands do not have prominent main businesses, and their core competitiveness is poor. Therefore, production companies must be professional and must be leaders in the product category. Chinese companies are currently smaller in size and do not respond to all the necessary tasks. Instead, they should first do the best for a class of products.

3, brand. Foreign hardware companies that have entered China are internationally renowned multinational companies. They have good reputation and can provide users with quality products and perfect services. However, Chinese companies are more familiar with languages ​​and markets, and they are relatively aware of the cultural needs. Therefore, it is more likely to establish their own brands.

4, technology. At present, the design capabilities and level of multinational hardware companies and processing methods are higher than us, they have advanced design reserves, and we are short of funds and lack of technology.

5, marketing management. Right now, China's hardware management and management model has not embarked on a real agent, management experience, management methods, management personnel are facing challenges; market management, price management, and promotion management are all at a medium or medium-upper level.

6, channels. The demand for the Chinese market itself has been increasing. Many foreign companies have come to China to produce. What they value more is the Chinese market. Most of the Chinese hardware makers are based on the domestic market. However, the domestic market is undergoing changes. The traditional big commercial trade unions, trade associations, Hualian systems and cross-border power systems are all economic associations, waste of resources, and high marketing costs. China's hardware exports account for only a few percent of the total amount. Expanding overseas markets is just the beginning. It is necessary to go global and lack the talents and trade experience of transnational elites.

7, scientific decision-making mechanism. Many Chinese people think that foreigners do not understand the Chinese market. In fact, foreign manufacturers will use high salaries to invite Chinese localization of talents, willing to spend money on purchasing information, and establish effective information channels and rapid response decision-making channels. The response to the market tends to lag, and we often lack decision-making and delays in business opportunities.

8, service. Foreign hardware manufacturers take the laws of the host country as the yardstick, never engage in a promise competition, and have very standard services. They not only don’t stick money, but also have the ability to make profits and use economic means to promote their service standards.

9, mechanism. Multinational corporations have established a modern enterprise system with clear property rights and are operational. Even if our traditional hardware manufacturing enterprises are listed, there may be a strange circle, that is, enterprises operating in a standardized manner also retain traces and imprints under traditional management mechanisms, because they are all born out of traditional mechanisms. . Such mechanisms and traces restrict the exertion of competitiveness.

10. Funds. At present, it is difficult for China's hardware manufacturers to get financing. Even if they can finance, the scale is very limited. Some of them are even operating in debt. To be close to the market, they lack the ability to transform and the products are all on the same level. Therefore, the development of enterprises is difficult, often forced by helplessness and caught in a price war.

Experts predict that by 2020, the proportion of China’s industrial added value in global industrial added value will increase from 5.72% in 2000 to over 10%; the export of manufactured goods will account for the proportion of global manufactured exports, which should be from 5.22 in 2000. % increased to more than 10%. At that time, China will also have a number of powerful hardware manufacturing groups, forming a number of distinctive and internationally renowned hardware manufacturing centers.

Third, actively explore the international trade of the hardware industry

With China's accession to the WTO, domestic hardware companies have gradually turned to foreign trade and even abandoned domestic trade to specialize in the development of the international market, and the opening of the international market is imminent. How hardware companies adapt to international trade cooperation, especially how small and medium-sized enterprises face the complex international forms of international market development is particularly important.

(1) First, the individual ideology of enterprises has also been challenged as never before:

1, continue to adapt to market changes. Whether in the initial bumpy period of entrepreneurial business, or in the booming period of business development, or after the fierce competition to accept e-commerce in the era of transformation, at any time to maintain optimism and ability to accept new things.

2, cost awareness. Alibaba's 2300 credit generalist, earned 100,000 in two months, not only recovered costs but also earned a lot. With the increasingly fierce market competition, the use of e-commerce to reduce costs is a winning approach that many businesses can take.

3. Learn lessons from failure. Everyone enters the field of e-commerce and will go through a detour more or less. Raising awareness of fraud prevention and making business online more securely are very important.

4, open the door of foreign trade. The biggest feature of e-commerce is fairness. No matter large or small enterprises, as long as the product quality meets the requirements and integrity passes the test, they can participate in the market competition. Others will not refuse people thousands of miles away because of their distance and size. With the deepening of globalization, even Chinese can become an international language. Enterprises must constantly strengthen the professional knowledge of foreign trade personnel, including language knowledge and trade to constantly expand your knowledge and competitiveness.

5, personal development and company development are closely integrated. The personal development of enterprise personnel and the improvement of their quality are closely linked with the development of the company.

(II) E-commerce Participation in International Trade of Enterprises

In 2005, how companies used the Internet to conduct e-commerce and become international trade became an inevitable trend of the times: First, let foreign customers know you through various channels; Second, let foreign customers trust you. This takes time and requires more standardized quality management and requires international market experience and talent.

1. The participation of e-commerce companies. As an intermediary, the company's identity participates in the international trade of the company, helping them solve various difficulties in communicating with the buyers, and directly making business commissions. This is a leap for the e-commerce industry and the company itself. Before the emergence of Alibaba.com and China.com, the world did not have an e-commerce site for international trade. Doing portal can copy yahoo! But to do international trade, specialize in B2B international trade between developing and developed countries, and this model can be used by trading partner countries like Mexico, Vietnam, the Philippines, and Indonesia. In China, using B-B as an import and export, the biggest advantage is to expand business opportunities and at the same time save costs. Originally, American companies buying Chinese products needed to go through middlemen. Now they can directly check related Chinese companies through the Internet and may find new demands. Chinese companies can also find new buyers directly through the Internet as business opportunities. Business opportunities have expanded. The amount of international trade has increased significantly. As far as China's reality is concerned, most small and medium-sized enterprises are accustomed to trade with middlemen, and are not familiar with the intermediate links such as transportation and mediation. If the foreign buyer is also a small company, it needs an intermediary to assist in this part of the intermediary business. Some companies do not understand English, they need to help bargain, do all kinds of import and export procedures. It is difficult for these companies to report to customs and find transportation companies and insurance companies.

2. Government support. Further expand the vision of the company, broaden the sales of hardware products in the international market, strengthen government service functions, provide good “soft” environmental services for enterprises, and often organize enterprises to “go global” and participate in domestic and foreign product sales activities. Through these exhibitions, companies can understand the market conditions at home and abroad, capture market trends, and actively seize market opportunities so that the company's products will go smoother in foreign trade exports.