Analysis of Development Situation of Small and Medium-sized Hardware Enterprises

With the continuous application of modern scientific and technological achievements in the industry, the competition in the hardware industry has become increasingly fierce. Whether you want to gain a firm foothold in which area of ​​the hardware industry, we must fully understand the development of the market. Hardware tools include all kinds of manual, electric, pneumatic, cutting tools, auto maintenance tools, agricultural tools, lifting tools, measuring tools, tool machinery, cutting tools, tools, tools, dies, cutting tools, grinding wheels, drills, polishing machines, Tool accessories, measuring tools, abrasives, etc. Most of the domestic manual tool companies are mainly low-end products or OEM OEMs. High-end products and brand products are still controlled by European and American countries. As the profit margins of hand tools are all being compressed, the space for price cuts has been reduced. Companies cannot rely on price competition to establish their core competitiveness, and they should explore new development paths.

The hardware product industry is an important part of China's light industry, and it is a sunrise industry that has ample market competition and is closely related to people's lives. According to Jin Mo.net CEO Luo Baihui's research, over 99% of enterprises in the industry are privately-owned small and medium-sized enterprises, mainly located in Guangdong, Zhejiang, Jiangsu, Shanghai, Fujian, Shandong, Hebei and other provinces and cities.

At present, the output of many hardware products in China ranks first in the world. Lighters, zippers, insulated cups, wrenches, pliers, zippers, knife and scissors all occupy a very large share in the global market, and their impact on the world's hardware industry is increasing. At present, there are more than 220 countries and regions in the world with the presence of Chinese hardware products, and China’s position as a major producer of hardware products has been established. According to Luo Baihui's survey data, the total output value of hardware products industry has reached 800 billion yuan, and maintained a growth rate of more than 15% from 2005 to 2008, of which the entire industry exports reached 50.3 billion US dollars in 2008, accounting for about 40% of the industry's total output value - 50%, in addition to the 7% increase in 2007, has been maintained at a rapid growth of 20%-30%. However, since the fourth quarter of 2008, the century-long global financial crisis has had a huge impact on export-oriented companies. Overnight, export orders “disappeared.” Some of the signed export contracts were even paid down, and were also returned on various excuses. Tools hardware, construction hardware, locks, knife and scissors, zippers and other industries are most affected by this crisis. Some people say that this is a battle without gun smoke, there is no real enemy in this battle, the real opponent is himself. Because many of our export companies are OEM-based and do not have their own brands and sales channels, our weaknesses have been fully exposed in this financial crisis.

According to the 2010 customs import and export statistics, the total export value of hardware products in the first half of the year was 26.396 billion U.S. dollars, up 33.2% year-on-year, and imports were 7.984 billion U.S. dollars, up 25.1% year-on-year. The analysis of the output of some hardware products provided by the National Bureau of Statistics during the first half of this year showed that the output of locks was 850 million, an increase of 17.5% year-on-year; the output of domestic gas stoves was 12,588,000, an increase of 5.8%; the output of domestic gas water heaters was 6,868,000, an increase from the same period of last year. 63.6%. The output of household range hoods was 8.305 million units, an increase of 34.7% year-on-year; the daily output of stainless steel products was 1.10.5 million tons, an increase of 51.4% year-on-year.

Among them, power tools are the most widely used hardware tools in the society. With the advancement of the times and society, the power tool market has developed rapidly. At the same time, various types of power tools have caused damages to consumers due to various aspects of quality problems. Therefore, the requirements of the world's countries for power tools on their home market are increasingly strict. The European Union has established a special 60745-1 standard for hardware power tools. Its purpose is to establish the specifications of hardware power tools and to regulate the technical specifications of power tools entering the European market so as to reduce or avoid the harm of power tools to consumers. Europe also introduced the Electrical Appliance Certification Act.

All the specifications and series of power tool products exported by relevant companies to the European Union must be certified before the export and passed the EU Electric Appliances Directive. The products that are about to expire should be applied for certification in a timely manner. In addition, within the inspection time of power tools, companies need to do the preparatory work in advance. Enterprises need to accumulate experience in response, and the products involved will be adjusted accordingly according to EU regulations, otherwise they will be eliminated by the market.

In the face of increasingly fierce market competition, if domestic companies do not attach importance to this, it will affect their long-term development, and good service is also a top priority. Most of the electric tools sold in the world are produced and exported from China. China has become the world's leading supplier of power tools. While the power tool industry is developing, some problems are increasingly exposed. In particular, the reform of the scientific research and development system is progressing slowly, and the gap with foreign countries is obvious. The low foreign exchange earned from export products, the low performance level, the low selling price, the small scale of the company, the low degree of concentration, and the raw material price increase factors seriously restrict the further development of the industry. The improvement of quality. Electric tool companies must seize new development situations, increase technological innovation, actively develop product certifications, accelerate technological transformation of enterprises, improve supporting measures, actively create conditions, absorb foreign capital, and promote the reorganization of corporate assets. Only in this way can the new situation be realized. never fail.

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DANYANG TRUST IMPORT & EXPORT COMPANY LIMITED , https://www.dytrust-tools.com