Wenzhou hardware industry drawback highlights the greed

"China's hardware and sanitary capital" advantage is still in the hardware industry, Wenzhou's locks, sanitary ware, molds and fasteners known at home and abroad, Wenzhou hardware has formed an industrial cluster, to achieve a "quality" leap. The vast majority of companies in the Wenzhou hardware and sanitary ware industry are concentrated in the Haicheng area of ​​Longwan District. The hardware and sanitary ware are the traditional industries in Longwan Haicheng. The Wenzhou hardware and sanitary wares industry rose in the 70s of the last century, when nearly every household in Haicheng was engaged in the production, processing and sales of sanitary ware. This is the earliest home-plant-style sanitary ware company. Afterwards, Sanitary Ware companies in Haicheng spring up like mushrooms. Large enterprises bring small businesses and small businesses to bring home workshops. After more than 30 years of development, almost every household in Haicheng is doing business with hardware and cleanliness. Haicheng Hardware & Sanitary Ware Co., Ltd. has developed from the initial family workshop production to the current corporatization and grouping large-scale production and operation pattern, and has maintained a good development trend.

In 2004, Longwan Haicheng was named "China Capital of Hardware Sanitary Ware". The production volume and sales volume of Longwan District Sanitary Ware Industry accounted for 55% and 52% of the total production base of all hardware wares in China, and the product group ranks first in the country. A large number of sanitary ware manufacturers settled in Haicheng, making the overall scale and agglomeration effect of the sanitary ware industry increasingly apparent, and the division of labor in the industry has also been continuously refined. At present, Longwan Hardware Sanitary Ware Industry has formed the nation's leading marketing market, and the advantages of industrial clusters have further manifested itself.

Disadvantages in the industry highlights the company's progress

While the hardware and sanitary ware industry in Longwan District of Wenzhou City is developing at a high speed, the problems existing in the industry are also increasingly apparent. The small, scattered and chaotic phenomenon of enterprises, the backwardness of production equipment and casting technology, and the frequent infringement of trademarks for foreign companies, which have severely restricted the further development of the hardware and sanitary ware industry in Longwan District.

The author learned from a long period of contact with Wenzhou's numerous hardware and sanitary ware companies that most companies are suffering from the "sequelae" left behind by the international financial crisis, the European debt crisis, and "temperature run", and their symptoms are gradually appear. Since last year, with the rising prices of raw materials and the continuous expansion of the consumer market, the market competition in the hardware and sanitary ware industry has become more intense, and the industry's drawbacks have become more prominent. High-middle and low-end products are uneven, product expansion is incomplete, and segmentation advantages are ignored. This is the three major drawbacks that currently exist in the Wenzhou bathroom hardware industry.

First, the brand positioning varies.

The current widespread phenomenon in the domestic sanitary hardware industry is that a company often launches brands with multiple grades, such as high school, low school, etc., but they do not have the confidence, patience, and ability to do a good job. In response to the current status quo, experts have appealed that domestic sanitary hardware companies have come to the time of “reluctantly cutting off love” and that they can no longer hope to rely on numbers to “besiege” and win. It is understood that Wrigley and other domestic first-line brands have begun to establish a scientific, accurate, and specific brand strategic planning and positioning, is committed to creating unique products and strong brands that not only meet the needs of the domestic market, can enter the international market. Insiders pointed out that the bathroom hardware companies must be firmly and uniformly implemented, and the brand will become a strong brand in the industry, able to compete with other international brands and compete.

Second, the product expansion is excessive.

At present, many domestic sanitary hardware companies generally have a “great market demand” market expansion trend. One of the main reasons for this trend is that the owners and employees of bathroom hardware companies, especially marketers, have advocated and expanded; Professional managers do not agree that the product variety is excessive, but the person in charge thinks it is necessary, and the company is the boss has the final say; Third, a company often has 2 to 3 brands, many companies implement each brand by different professional managers Separate management, brand competition within the company also caused the internal product variety comparison expansion.

Third, the market segmentation advantage is ignored.

At present, China's sanitary hardware companies and brands, especially the large number of small and medium-sized sanitary hardware companies and brands, in order to gain a foothold in the market, only select one of the most promising roads, give full play to their advantages, specifically Go on, deepen and specialize it, and let it go.

This “width” is to broaden the length of “a road”, subdivide it in form, subdivide it in terms of specifications, and at the same time carry out innovative designs based on the customer's habits and aesthetic requirements, in terms of technology, material, shape, and process The service and other areas have been comprehensively upgraded and the "small market" has been specially designed for widening.

In the current situation, despite the serious decline in the profits of sanitary hardware companies, professional products will still be the company's goal. Enterprises can't be "hands and feet" on products because of falling profits. Otherwise, they will lead to narrower and narrower corporate development paths. Product exports have always been a good thing. However, since this year, the heads of Haiba Sanitary Ware Chairman Qiu Jianchun, the general manager of Texaco Sanitary Ware Chen Sijun, and Aolong Sanitary Ware Company Zhang Tianyou have been worried about this issue – the economic downturn in Europe and the United States and the instability of international trade have made these companies export orders. Significantly reduced; the long-standing "price war" in the Wenzhou hardware and sanitary ware industry has seriously affected the reputation of the industry.

Under the circumstance of unstable international trade, Wenzhou's product export inspection has encountered many difficulties. Even more frightening is that Wenzhou Sanitary Ware products are likely to encounter trade barriers in the international market. A large part of Wenzhou's hardware and sanitary ware companies are family-run enterprises. These small enterprises generally rent private houses for production and win a little market by playing a “price war”. However, with the rectification of illegal buildings in urban areas in Wenzhou last year, more and more houses have been demolished. Many small businesses that previously rented residential buildings did not have production sites, and some small enterprises were forced to close their doors.

Strong combination, industry structure or will "big reshuffle"

In the investigation, the author found that most of the nearly 100 small-scale hardware and sanitary ware companies that “disappeared” in Wenzhou since last year have been integrated into larger enterprises. “Big fish eats small fish” and “fast fish eats slow fish”, which is also in line with the industry competition rules for survival of the fittest. In fact, from the beginning of last year to the present, China's bathroom hardware companies continue to attract people's attention. Overseas listings, joint exhibitions, strong alliances and other news emerge in an endless stream, which shows that the branding of the bathroom hardware industry has been carried out in a grand manner. It can be predicted that China's sanitary hardware industry will enter the oligarchic era in the next decade, and a group of leading enterprises will occupy a larger market share in the industry and become a well-deserved leader in the industry.

The cooperation between domestic companies and foreign well-known brands, cooperation between manufacturers and stores, strategic cooperation between enterprises and media, cross-industry cooperation, etc., regardless of the form of alliance, its ultimate goal is to develop a broader market. The alliance between the strong and the strong will become more and more common. “The old road is only a dead end. Wenzhou's bathroom hardware industry must embark on a new path!” said the owner of a sanitary ware company in Wenzhou. Enterprises should integrate industry resources and achieve industrial transformation and upgrading under the guidance and support of the government and industry associations. He stressed that Wenzhou's hardware and sanitary ware companies have come to "reluctantly cut off love," and it is no longer possible to rely on quantity and low price to "siege" to win the psychological, and should unite, strong alliances, Baotuan combat!

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