Analysis on Development Characteristics of Padlock Industry in Zhejiang

The lock industry is a traditional and emerging industry in the hardware industry. It is traditional because locks have a long manufacturing history and time of use. It is emerging because locks are continuously innovating and new technologies are used to meet the needs of the lock products. In the new era, consumer demand for the use of locks in terms of functions, appearance, and design has played a role in safeguarding people's lives and property, as well as the people’s normal life.

The lock industry in Pujiang County, Zhejiang Province, under the direct leadership of the government at various levels in the Pujiang County Party Committee and Government of the Zhejiang Provincial Party Committee and Provincial Government, has experienced a distinctive development path under the enthusiastic service of various functional departments. The so-called features are cluster-type development methods. At present, there are more than 500 lock-making enterprises in Zhejiang. The number of production enterprises is large and the output is large. This is the biggest feature of the padlock industry in Zhejiang.

In recent years, the rapid growth of the lock industry has attracted particular attention. At present, the industry's sales are about 40 billion yuan, and the output is 1.9 billion. According to customs statistics, the average annual export growth rate of the lock industry during the “Eleventh Five-Year Plan” period reached 31%, which is twice the average speed of the hardware industry. Between 2006 and 2008, that is, before the financial crisis, the total export value of lock products was 1.516 billion U.S. dollars, 1.963 billion U.S. dollars, and 3.589 billion U.S. dollars, respectively, with growth rates of 27.3%, 29.5%, and 82.2%, respectively. It can be seen that in 2008 the export of the lock industry reached a new peak. However, in 2009, due to the impact of the global financial crisis, the export of lock products also experienced a certain degree of decline. In 2009, the export of locks was 2.995 billion U.S. dollars, a year-on-year decrease of 16.6%. In 2010, with the improvement of the foreign financial situation, the export of locks reached US$4.003 billion, not only returning to the pre-crisis export level, but also increasing. In the first half of 2011, the value of locks exports was 2.082 billion U.S. dollars, a year-on-year increase of 15.9%. Based on this, it is estimated that the annual export value should exceed the overall level of the previous year. In just five years, the export value of lock products has increased from US$1.516 billion to more than US$4 billion, and it still maintains a momentum of rapid growth. We have reason to have a high level of confidence in the future development of the industry, and there is still huge room for development in the lock market. However, due to the lack of brands and channels, domestic enterprises are only receiving delivery orders, who do not know how to sell products, how much they do not know, and where they sell. Failure to understand the end market demand has led to passive production and low efficiency. So we must change this malpractice. On the import side, import of lock products from 2006 to 2008 reached US$321 million, US$340 million, and US$393 million, respectively, with growth rates of 34.9%, 5.92%, and 15.6%, respectively. In 2009, the import of locks was also affected by the financial crisis. The import volume was 369 million U.S. dollars, a year-on-year decrease of 6.1%. In 2010, the import value of locks reached US$504 million, an increase of 36.6%. In the first half of 2011, locks imported 273 million U.S. dollars, an increase of 16.2% year-on-year, and it is expected that annual imports will reach 550 million U.S. dollars. The speed of imports is increasing, which means that there are more and more foreign products in China's high-end market. It also shows that domestic products cannot enter the domestic high-end market because there are no brands.

Not only the lock industry, the entire hardware industry is currently facing the following major issues:

Extensive development methods, backward technology, overcapacity of products, low-grade products, low-end and high-end products, unstable product quality and a certain gap with developed countries, lack of high standards, high efficiency, lack of core technologies and independent intellectual property rights, and lack of The world famous brand, in short, lacks core competitiveness and international market leading capability.

The scale of the company is small, the structure of the enterprise is irrational, the product structure is irrational, and the leading role and exemplary role of the enterprise have not been fully realized. This phenomenon will not change and will not be sustainable in the future. Before the meeting, I visited the plum lock factory. Through the transformation of automatic assembly lines, plum blossoms have increased labor productivity by 600%. With an investment of 180,000 yuan, one to one and a half years will earn back the investment in equipment. At the same time, the introduction of automation equipment has also brought about a steady increase in product quality.

The product structure needs to be adjusted. Padlock technology content, processing technology and product prices are not high, should enrich the product line to produce high value-added lock products.

In response to these problems, the China Hardware Association proposed the following priorities in 2012:

First, take product quality as the center and increase the intensity of technological transformation. Good product quality must rely on advanced equipment, which is a necessary condition to ensure product quality;

Second, brand building. This year, the lock-making industry will also carry out the assessment work of the “Top Ten Lock Kings” in the lock industry, promote the popularity of enterprises and industries, and provide a pave for our brand building and channel construction, in order to increase our popularity;

Third, technological innovation;

Fourth, increase support for industrial clusters. Through the development of industrial clusters, we have developed our industries and promoted the development of our industries by increasing the internal connotation of industrial clusters so that all of us can benefit from the development of industrial clusters;

5. To build a sales platform and expand domestic and foreign markets, and to walk on two legs and develop in a balanced manner.

Three hundred and sixty lines, the top line. I hope that our lock-making industry in Pujiang County can withstand the temptation in the modern market economy environment, endure loneliness, and step down step by step. The era of “affordable and inexpensive” has already passed in the hardware industry. Now we should advocate “higher prices for better quality”, be professional, be fine, and be strong, and make a contribution to the long-term and healthy development of our Chinese lock industry.