The thrust and resistance of e-commerce and the development of hardware companies

The sudden emergence of e-commerce has become an important platform for the development of all walks of life. Hardware companies are no exception. With the constant adjustment and deepening of the hardware industry structure, the process of transition from traditional hardware to modern hardware is also accelerating. E-commerce is inevitably introduced into this process and will become an indispensable catalyst for advancing this innovation.

However, no innovation can be accomplished overnight. When e-commerce and traditional business are on the same platform as PK, standing at the crossroads of transformation, traditional hardware manufacturers are both happy and somewhat confused. Should we go to the left or to the right? this is a problem.

Concerns and Troubles of Traditional Enterprises The network economy has opened up an unprecedented commercial space for traditional hardware companies and promoted profound changes in channels. Under the new situation of new technologies and new dissemination of science and technology, some hardware companies in China have already taken the lead in e-commerce. In the Chinese hardware manufacturing base in Zhongshan Xiaolan, more and more hardware companies try water e-commerce, Yajie, Jindian, Yonggu, Haishiman and other well-known companies, are the beneficiaries of e-commerce.

In the era of network economy, these hardware companies deeply feel that it is not enough to just seize the traditional channels, but what puzzles them is that the perfect combination of online and offline is always a difficult problem. For most hardware companies, online sales still appear to be insignificant compared to traditional channel annual sales.

In fact, this difficult issue is also confusing all traditional Chinese enterprises. In recent years, in order to seize the opportunities in the field of e-commerce and share the advantages, some old traditional enterprises with stronger comprehensive strengths no longer hesitate, and they have also been shocked and have expanded their sales channels to the Internet. E-commerce is a **. Traditional enterprises are trepidation and tactical. Creating an e-commerce website is a huge investment. In order to have a perfect product display, timely order delivery system, and effective data tracking and excavation, an e-commerce website needs to invest at least a few million or even tens of millions of dollars. This expensive investment is no small challenge for traditional companies.

It is very difficult for a traditional company to enter into e-commerce and go to tens of millions of yuan without basically generating orders. For most companies, through Taobao, pat network and other third-party e-commerce sites, first fumbling with market experience, gaining popularity, access to sales, and then increase investment, self-built e-commerce website, may be a prudent path. However, for a traditional enterprise that really wants to concentrate on e-commerce for a long time, the shortcomings and drawbacks of Taobao cannot be ignored. With a large number of brand owners flocking to Taobao, the proliferation of resource distribution will reduce the benefits of a single brand's rapid growth.

In addition, the biggest problem encountered in the process of e-commerce is that goods are sold on the Internet and fake goods are often sold at ultra-low prices, affecting the rights and interests of distributors. Dealer complaints are already a common and inevitable phenomenon.

In the traditional industry, the company's operations must achieve effective brand management, product management and supply chain management, and ensure a good dealer management system to ensure that goods have an unimpeded channel. Even in the industry where the channel is king, the satisfaction of the distributor directly affects the survival of the company. However, the early growth of China's e-commerce has been somewhat brutal, especially for individuals and small and medium sellers, relying on third-party e-commerce platforms to sell counterfeit goods and sell goods through offline platforms, and then to sell goods online at low prices. Since the price on the Internet is much cheaper than offline, it attracts a large number of buyers. However, because the quality of these products cannot be guaranteed, the interests of consumers are not effectively guaranteed, and frequent complaints directly affect the product brand.

How to avoid online and offline stocks? How to ensure the best interests of distributors? How to rectify the market, assist the traditional channels in healthy development, and at the same time continue to develop their own e-commerce? For most of the traditional enterprises, these are the current challenges.

The development of e-commerce in China has lagged behind developed countries such as the United States in the past decade. Initially, it was constrained by factors such as immature market environment and imperfect credit system. For traditional enterprises, the lack of compound talents and the imperfections of technology systems all hinder the process of traditional electric shocks.

The road to the push and resistance of e-commerce is long and arduous. After years of confusion and exploration, the process of e-commerce in traditional enterprises has only just begun. Whether you can really do e-commerce, test the traditional enterprise's consciousness, mentality and system. With the rapid development of informationization and networking, there are at least three major driving factors for the development of e-commerce in the hardware industry:

The first is that e-commerce has received state support and encouragement. During the 12th Five-Year Plan period, e-commerce will be included in strategic emerging industries as a branch of a new generation of information technology. It will be the focus of the next phase of informationization. Promoting the popularization of e-commerce, increasing the level of network procurement and sales, promoting the development of the mobile e-commerce market, and establishing a rigorous e-commerce specification system have become important contents of the 12th Five-Year Plan for e-commerce;

The second is the booming of Internet consumption. A series of Internet-related consumptions such as online shopping and group purchase have gradually emerged, becoming the lifestyle that young people nowadays respect. Items that can be purchased on the Internet are no longer limited to daily necessities such as clothes, shoes and hats, but gradually expand to home building materials, etc. each field;

Third, market competition forces companies to open up new channels. In 2011, the new round of market competition in the hardware industry has intensified. Faced with this situation, many hardware companies are in urgent need of transformation and upgrading, and it is imperative to open up new marketing channels, and e-commerce must be the first choice. Although e-commerce has brought potential for the development of hardware companies, the current situation, e-commerce development is also facing three major resistance:

First, the popularity of small-city networks is not high. Although our country's network has developed rapidly in recent years, in some small cities, the popularity of the network is still not high, and personnel technology is still insufficient. Therefore, if an enterprise wants to expand its market coverage, it cannot rely on the network. In addition, network marketing has a strong passive, can only achieve the point-to-point communication, consumers have the initiative, companies can only wait and see;

Second, there is a problem with network information security protection. One of the biggest drawbacks of online marketing is the security of network information. Frequent fraud cases occur in online transactions, such as counterfeiting of third-party payments, sending of viruses to steal bank card information, and publication of false information to deceive consumers. Therefore, how to win consumer confidence is crucial in online marketing.

Third, there is no practical sense of physical consumption. This is a big reason why some consumers are not willing to choose online consumption. Hardware and other home building materials are different from others. The most important thing for consumers is to feel the material and comfort level by hand, and some measure the size. Although the network makes the list of product types unobstructed, consumers cannot touch, feel and measure and lose the basic selling point of home building materials.

The trend of hardware development and selection of hardware industry to use e-commerce to achieve transformation and upgrading must have professional and perfect management. The hardware industry involves a very wide range of products, such as simple hardware products such as screwdrivers, wrenches, and slide rails, as well as brand-name products with relatively mature technologies, all of which are more suitable for e-commerce marketing. Its outstanding feature is convenience and transparency, and it can adopt one-on-one online direct sales strategy for target customers. As the main part of the hardware industry, SMEs tend to use third-party e-commerce platforms. The specialized hardware e-commerce platform with industry subdivision has gathered a large number of industrial enterprises to help SMEs effectively carry out network promotion.

In addition, the development of professional e-commerce platforms supported by featured hardware industrial bases has also become the current trend of e-commerce development in the hardware industry. The unique hardware industry bases are constantly emerging and are currently concentrated in Guangdong, Zhejiang, Jiangsu, Shanghai, Hebei, Shandong and other economically developed provinces and regions. The establishment of an electronic commerce platform based on hardware industry clusters in the hardware industry will establish a business exchange platform for companies, brands, products and distributors, and customers in the industrial base, and enhance the comprehensive competitiveness of the regional hardware industry. Regional hardware companies have radiated to the whole country through the industry network, thereby breaking the restrictions of the industrial structure and gaining integration and exchange with the local industrial information.

From the current economic situation, hardware, software, and comprehensive supporting facilities in the hardware specialty market have gradually increased, and basically all households have achieved access to the Internet. Business households can integrate traditional commerce and e-commerce through the Internet and expand the advantages of the real economy to the Internet. It is a development trend for the hardware professional market to use e-commerce to achieve transformation and upgrading. At present, most of the hardware industry merchants are not very optimistic about the network, for the operation of the shop, promotion is still in the least knowledge. At this time, if a specialized hardware market platform is established through the cooperation of enterprises specializing in electronic commerce operations, professional training for business households will be provided by third parties from the aspects of site establishment, promotion, and marketing, which will facilitate the rapid realization of e-commerce in the market and promote Hardware product operators have developed both online and offline.

China's hardware industry is growing rapidly at an annual rate of 20%, with an annual total output value of 400 billion yuan. However, under the influence of the international financial turmoil, the development of the Chinese hardware industry has encountered unprecedented difficulties. Especially in recent years, the increase in friction in international trade, the appreciation of ***, and the price increase of raw materials have led to increasingly low profits in the hardware industry, and increasingly unstable foreign customers. The survival of hardware companies has become increasingly difficult. Various situations indicate that traditional commerce can no longer fully meet the survival and development of the hardware industry, and e-commerce is an inevitable choice for the development of the hardware industry.