Decorative hardware market has great potential for development

In the turbulent international economic environment, the ability of independent innovation is low and the brand is weak. Will the Chinese hardware industry break through the limitations of foreign development models and find a way out for itself?

The decorative hardware industry has ushered in a wave of reunification with China's entry into the WTO, followed by a wave of economic integration. The accelerated global manufacturing transfer to the Chinese mainland has become a general trend, and China will gradually develop into a world-class manufacturing base.

According to industry estimates, the architectural decoration industry, which is closely related to the construction industry, is ushering in a major reshuffle.

The domestic building decoration industry has a huge market, but the enterprises are in a small and scattered state. At present, there is no listed company in the domestic hardware industry.

“Only the domestic market has a market scale of 40 billion yuan, but because the threshold was too low, there are countless companies engaged in this industry in the country,” said Cao Hantian, a managing director of Guangdong Hardware Co., Ltd., who believes that companies have been closed down in the first half of the year. The domestic hardware industry has officially entered the reshuffle period, and large companies with independent research and development capabilities and brand advantages will come to the fore.

The development potential of the decorative hardware market is huge. In recent years, decorative hardware companies have sprung up everywhere and have spread all over the country. However, due to the old concept of production, many SMEs still remain at the level of pursuing quantity. The quality of products cannot be guaranteed, and the industry needs to catalyze itself.

The survey found that most of the decorative hardware dealers are small businesses, mainly based on small workshops, shops, and scattered brand awareness. These companies often rely on price wars and sales to win, making only a small proportion of the brand, resulting in the industry there are scattered, chaotic, and small phenomenon. The old business model is far from adapting to the rapid development of the market.

Dealers who use small-brand products at a low price tend to base themselves on the preferred standards in third- and fourth-tier cities, resulting in small product differentiation, fierce market competition, and continuous dilution of catalytic profits, thereby prompting most products to fight prices and services. However, many manufacturers do not have innovative R&D capabilities and continuous development strategies. They just blindly copy and copy, and their product processes and styles are almost identical. The homogenization of the entire market is very serious. The business model is single and conservative, which seriously causes the hardware industry to enter the price. Vicious competition.

Hardware companies should actively increase technical equipment updates and product updates, and quickly complete the development of products from low-grade products to high-end products, shifting from price-based to high-quality, high-tech product competition.

With the deepening of competition, the overall profit space of the hardware industry chain is being compressed, and the space for price reduction is shrinking.

Hardware companies should realize that price competition alone cannot enhance core competitiveness, nor is it the direction of long-term development. Enterprises must strive to explore new development paths. Should increase technical input, develop new products with high technology content, take product differentiation as a long-term plan for enterprise development, and seek new market demands to achieve sustainable development of enterprises. In fact, hardware accessories are in cabinets, The key functions of connecting, decorating, extending functions, and prolonging the life of household products such as wardrobes, doors and windows, and sanitary ware. Although it is so important, but people's attention is not high, hardware accessories industry is still only in the development stage, the market potential for consumption has yet to be tapped.