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Hardware business survival of the road
2011-03-14 09:48:24  

"Hardware enterprises to how to survive?" Looked at the hands of a discarded orders, looking behind the piled full of shelves in the hardware industry to do a few decades of export business Pharaoh really feel the economic crisis to the hardware Industry brought a heavy blow.

"In the face of China's huge market, a large number of precarious hardware companies began to experience from the 'export to the domestic' difficult transformation." In the recently held hardware and technology innovation conference, Tianjin North Hardware & Electrical City Co., Ltd. Chairman Chen Ying solemnly told reporter. On the one hand, China's high-end brands are firmly controlled by foreign manufacturers, on the other hand, a large number of small workshop-style metal processing plants, with low prices to grasp the low-end market, so set foot on this "domestic road" Mechanical and electrical enterprises to go more difficult.

"Export" hard to find a way out

"More than 90% of the company for export orders," the meeting, Zhejiang Yiwu, a hardware production business executives told reporters, recalled the beginning of the business hot, he is still a look of joy, "our company's quality is not bad, And many foreign customers have maintained a very good relationship, although the OEM, but the market is good, orders are large, usually orders are one by one to come.

Strong demand also led the entire hardware products throughout the industry chain prices rose. Statistics show that hardware prices in the first half rose more than 30%, while the average price of raw materials in early March has reached 5570 yuan, up 40% in August once exceeded 6,000 yuan, while copper prices rose to history new highs.

"The market is good plus the price is high, that time everyone's passion is high, despite the high price of raw materials, but there are still many companies have purchased a lot of raw materials to intensify production." The responsible person told reporters.

Winter swept the world overnight, quickly to people caught by surprise. With the large number of enterprises have closed down, by the export of hardware companies suddenly wake up "good days have gone." "Start is the amount of orders to reduce day by day, and later signed a lot of orders have been a lot of 'abandoned single'. An unnamed industry insiders told reporters, "not only the first half of the price was pulled down rapidly to the original position, and even down 10%"

And a report from the US Department of Commerce shows that US retail sales have fallen for five consecutive months, in November with the hardware direct users of the automotive industry, sales fell 2.8%, while the hardware store sales fell 1.2%.

"The market price is so low, the dealer's basic profit is only 5%, for the production enterprises, facing a large inventory and are high-cost production, can only buy a loss, and the more difficult the more days." Insiders admitted to reporters, "a lot of production enterprises timid, and many orders are afraid to pick, afraid of their own raw materials to make things out, buyers can not pay the money.

It is not easy to recover

At this time, has been focused on the export of many hardware and mechanical production enterprises began to look back to the domestic market. At the same time, some foreign brands have begun to enter the Chinese market. "China's market is relatively stable, coupled with the introduction of a number of national macro-control measures, the market potential is relatively large, but also become the focus of many manufacturers to compete for the next step." Chinese market director Gao Tie-sheng in the meeting said. It is understood that, in order to cope with the economic crisis, following the introduction of four trillion trillion domestic investment plan, the recent meeting of the Central Economic Conference, once again clear the "growth and promote development" for the next year's focus.

"For the previous focus only on the export of hardware and electrical enterprises in terms of turning to the domestic market is facing a lot of tests." From Shandong Province, Laizhou City, five cross-chairman of the company, said Wang Chongbo. He told reporters, on the one hand, most of the export-oriented enterprises are OEM production, did not form their own brand, on the other hand, for a long time for foreign markets, but also to enable enterprises from production to circulation formed a set of inherent model, The product development is also mainly for foreign markets, the Chinese market to grasp the lack of.

"On the current domestic market, several foreign brands have been firmly in control of the high-end market, while small workshops of enterprises rely on 'low-cost low' in the low-end market share is high, and such export-oriented Enterprises, neither the brand awareness and foreign companies compete for high-end market, but also and small workshops like enterprises 'fight price', this time to open the Chinese market, for these export-oriented hardware business is very difficult. "He added.

"The lack of a good circulation platform has become a bottleneck in the current development of the Chinese market." Baita Industrial Trade (Shanghai) Co., Ltd. General Manager Xu Kai admitted that the traditional sales model is by the dealer, and this Although the model dealers have their development advantages, but the overall quality is relatively low, more backward management model, more attention to immediate interests, the market anti-risk ability, do not attach importance to brand development, economic strength is weak. In this round of economic crisis, for some dealers, may face life and death test. "Many domestic manufacturers are often overly dependent on their dealer network, once the dealer first problem, manufacturers are easy to quickly lose the market." Xu Kai said with concern.

On the other hand, the production enterprises of the sales model also determines the current level of China's hardware and mechanical professional market. Reporters learned in the interview to the dealer for the main business of the simple shop business, the formation of the Chinese hardware professional market characteristics of the "boss economy" model, the market brand, size, growth rate facing the "ceiling" effect, it is difficult To achieve a real sense of modernization, brand-based large circulation, large distribution business.

Hard work is the key

"In the same time, the industry will face more intense competition," from the beginning of our business in October after the beginning of the problem, how to survive is the most critical issue . "Shanghai Dongsheng Welding Group President Hu Chengping told reporters," and the real survival and development of the most important is the brand and quality. Give a simple example, a pliers, well-known foreign brands can buy a few hundred dollars, while some Chinese enterprises Production only a few dollars. The same manufacturers and goods, just because the brand price can be different.

"Fear must be a driving force, and to deal with such an economic crisis, relying solely on an enterprise is not enough to form a joint response." Chen Ying told reporters, first of all, enterprises must re-integration of the domestic market, according to market demand for research and development Or focus on the production of marketable products. Especially with China's four trillion investment gradually in place, the relevant roads, railways, airports and other construction needs to use the hardware and mechanical and electrical products; Secondly, to enhance product quality, increase value-added, relying on the previous "OEM" production process Finally, to improve the circulation of the field, to promote the depth of business and industry, through the construction of mechanical and electrical hardware, "the United States," to create business advantages, such as building a number of circulation platform, the development of flagship stores and boutiques , The establishment of online platform and other modes of development, better savings in business costs and improve efficiency.

"As one of the circulation platform, we must first become a platform for manufacturers to enhance the brand." New South Road, general manager of the city of Lu Yongjia told reporters, in addition to enhance the service and build flagship flagship store plan, the Group will soon establish the world hardware network such as Professional online information platform, and to strengthen the construction of logistics and distribution. He also suggested that the country nearly 200 circulation market to strengthen the horizontal joint, excellent hardware market to form a coalition for the brand enterprises to enter the market to develop the best access channel.

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