The Role of China's Hardware Industry Clusters in Driving Regional Economic Development

Industrial clusters help create regional brands. When people mention home appliances, people think of Shunde. When people talk about lighters, they think of Wenzhou; when they mention a tie, people think of Luzhou; when they talk about socks, people think of Zhuji Datang; when it comes to textiles, people talk about textiles. Think of Shaoxing, Zhejiang Province; when it comes to hardware, people think of Yongkang. Through these typical cases, we can clearly see that in the development of local economy, enterprises use the effect of local industrial clusters, through government guidance, and in the process of expanding within the industry, provide a set of operational success for the development of regional industries. mode.

1. In-depth division of labor and efficient cooperation In the industrial cluster, the business models of enterprises are generally "core capabilities plus outsourcing." That is, each company will focus all its funds and all its energy on its own advantages, making it the cheapest, best, and even the cheapest and best in the world. This is the core capability of the company. Other work, including the production of other parts and components, product design, and sales, is outsourced to other professional companies. In this way, each product is a summary of the core capabilities of many companies.

Years of development has made Zhongshan's hardware support companies perfect. It can be found in the north of Zhongshan City. The rapid prototyping of Hanxin Mold provides convenient services for the rapid transformation of the company's products; the world's largest Stanley hardware The tool company is located in the northern region of Zhongshan and lays the foundation for the prosperity of the hardware industry. According to relevant sources, a very common lock has more than 40 parts and has 123 processes. These can be completed in the north of Zhongshan, and there are more than 360 packaging and printing companies in Zhongshan. An important part of the smooth delivery, the industry within the cluster is complete.

2. Fast transaction cost saving In the industrial cluster, companies face the nearest, many raw material suppliers and equipment suppliers, so they can shop around, can lower costs, higher requirements and faster. Speed ​​to buy a variety of inputs, including raw materials, spare parts, machinery and equipment, various services, and various human resources.

3, the professional market is conducive to the production and sales of one, because there is a major professional market at home and abroad, is conducive to the company's product sales.

Second, because of the large number of professional markets, it is easier for companies to purchase raw materials and accessories, and the prices are very low.

Third, these professional markets are both product distribution centers and information distribution centers. While concentrating the same domestic and foreign products here, people have concentrated the relevant information at home and abroad here. With this information, companies in the cluster can improve the variety of designs in a timely manner and quickly adjust the product structure. Companies can continue to reduce costs and provide external motivation and pressure.

4. Virtuous competition and harmonious coexistence are within the industrial cluster. The same kind of products are not produced by one enterprise, but are produced by numerous enterprises. These enterprises naturally compete with each other. This kind of competition is face to face. Many similar companies are even door-to-door and household-to-house.

5. Adjustment of Investment Structure After investigating the industrial development model in many parts of the country, Luo Baihui pointed out that industrial clusters are the best investment environment. Industrial clusters themselves represent the market and business opportunities. Industrial clusters are a good project incubator and business incubator. Some visionary people can continuously find investment blanks here. It is the investment in these blank areas that makes the industrial supporting system and service system of the cluster increasingly perfect, and the industrial chain is continuously extended.

In addition, starting a business within an industrial cluster not only has low cost of entry, but also has a low exit cost. Because hundreds of companies or thousands of companies in the same category, individual companies fail due to poor management, or need to sell due to industrial restructuring, including the sale of some assets, it is easy to find buyers, because there are many high-quality enterprises in urgent need of expansion. Mergers and acquisitions of local companies are the best way for them to expand at a low cost. Not only is it conducive to attracting external direct investment, but it is also conducive to the internal and external capital markets of companies within the cluster.

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