Bathroom hardware industry will emerge giants in the next five years

Experts pointed out that domestic competition in the internationalization of international competition will be the new characteristics of China's hardware industry in the next few years.

China’s position in the global hardware manufacturing center is further stabilized. With China’s rapid integration into a global market economy and rapid economic growth, China has become the most dynamic market in the world. Relevant experts believe that China's economy is gradually regulating development, production facilities are relatively complete, the industrial chain is relatively mature, and labor costs are relatively low. This has the comparative advantage of becoming a global hardware manufacturing center. The outward development of hardware manufacturing industry has obvious characteristics. .

The capital operation in the industry is active and the cooperation between enterprises has been significantly strengthened. In the global competition environment, capital operation is a crucial issue in order to obtain a highly competitive market position and improve overall competitiveness. In 2004, Supor and Vantage were listed on the market. At present, many companies are still trying to go public. From a capital perspective, the current major feature is the expansion of capital. From the perspective of competitive behavior, resource sharing and cooperation among enterprises are increasing.

From price-based shifts to high-quality, high-tech content competition. With the deepening of competition, the overall profit space of the hardware industry chain is being compressed, and the space for price reduction is shrinking. More and more companies realize that relying solely on price competition cannot enhance core competitiveness and are not the direction of long-term development. They must strive to explore new development paths. Many hardware companies have increased their investment in technology, developed new products with high technology content, and used product differentiation as a long-term plan for enterprise development, seeking new market demands in order to achieve sustainable development of the company.

From July 8th to 11th, 2010, at the 12th China (Guangzhou) International Building Decoration Fair, the hardware and sanitary products launched by Kaiping Dugao Sanitary Ware Co., Ltd. have unique features, attracting a large number of customers and reaching more than 200 intent customers. There are more than 40 customers contracted on site. Tang Yudong, general manager of the company, said: “The company has participated in this exhibition and has gained a lot.” The reason why Dugao's products are sought after at the expo is because companies focus on innovation and do not take the homogenization route. Emphasis on brand building, adhere to the "international vision, advanced technology and increase brand building" operation concept, with high cost-effective products and perfect services for consumers to enjoy high-quality life. Therefore, Dugao Sanitary was identified as the merchant recommendation merchant for the World Expo.

Industry polarization further intensified. It is understood that the next few years will be the rapid development and turbulence of the hardware industry. The direct consequence of this high-speed shock is that the trend of polarization in the current camp of decorative hardware brands is even more pronounced and expanded. It is expected that the number of hardware companies that can really survive in the market in the next few years will drop sharply. However, this high-speed oscillation in the hardware industry will also bring great opportunities and make the market operation more rational and standardized.

In order to increase their own strength and expand the international market faster, domestic hardware companies will adopt various means to accelerate the integration with foreign companies to improve product quality and competitiveness. While continuing to develop markets in the United States, Japan, and other countries, Southeast Asia, the Middle East, Russia, Europe, and Africa are all blooming. It is understood that the Chinese hardware industry will continue the trend of structural adjustment and continue to occupy a larger market with new products and new highlights.

The construction of industrial bases is in full swing In recent years, with the steady growth of the domestic economy, the regional economy and industrial bases have developed rapidly in China. There are nearly 200 hardware and stainless steel products manufacturing enterprises in Xinhui, Jiangmen City, of which over 120 are above-scale enterprises. Last year, the total industrial output value exceeded 15 billion yuan, accounting for more than 20% of the total output value of the region. The continuous development of enterprises has promoted the rapid development of the entire industry, and it has also made positive contributions to local governments in solving labor employment and providing taxation.

The hardware industry is a traditional industry in Xiaolan Town, Zhongshan City, Guangdong Province. As early as 1986, Xiaolan Town was honored as China's “Lock City in the South”. After more than 20 years of development, Xiaolan Town's hardware products industry has formed a category of 10 types of hardware industry, with locks and gas appliances as the leading products, and upstream and downstream products and various accessories.

In 2010, Xiaolan Town's hardware and plastics industry revenue reached more than 16 billion yuan, accounting for more than 30% of the town's industrial sales. Zhejiang Yongkang will give full play to the brand incubator role of the “brand base”, highlight regional advantages, and create industrial brand advantages with personalized products. The Municipal Bureau of Industry and Commerce fully utilized the advantage of “brand base” clusters, scale effect, information concentration, and regional advantages to comprehensively promote the advantages of brand brand integration and guide enterprises to implement the integration of trademarks, trade names, product quality, corporate credit, and corporate culture. The three-dimensional brand operation mode expands market share with intangible assets and comprehensive strength and reflects the brand management effect in all directions. It truly makes the “brand base” a cradle for fostering famous brands, well-known trade names, well-known trademarks and famous brands.

Advantages and disadvantages of the operating mode are known, the current hardware manufacturers in the market to promote the construction of the main brand, professional brand and integrated brand two. Professional brands generally refer to the production of more specialized enterprise products to market their own core single product. The advantages of this brand are more professional, cost-effective, rapid delivery, and strong R&D and innovation capabilities. However, the disadvantage is that the product line is relatively single, and the advantage product is easily weakened by copying and copying by peers. In addition, dealers can only occupy one wall in the shop for display, and the brand image is difficult to increase. Therefore, the overall competitiveness is not strong and it is easy. Inundated in the market. Comprehensive brands generally refer to brands of multi-category product portfolios. Products include door locks, supporting engineering hardware, large handles, door control hardware, and bathroom hardware accessories. Such brands usually use specialty stores or store-in-shops as terminal sales forms, with prominent brand image, perfect product mix, and mutual promotion of products, basically fulfilling one-stop shopping requirements, and solving the same brand of multi-category products for engineering companies. The procurement problem has reduced the number of dealers' multiple purchases and maximized store benefits. At the same time, due to the huge product system plus the brand's personalization and product content, it is difficult to be replicated by peers. However, it is very difficult for such brands to succeed in operation. The key is to see how companies can grasp.

At the beginning of March, the store of 120 square meters of Kang Liyuan hardware and sanitary wares opened its doors in Sanming, a land of southern Anhui. On the first day of opening, the store was packed inside and out. The newly opened specialty stores are equipped with leading products such as showers, showers, and metal pendants, which greatly satisfy the needs of consumers for one-stop shopping. The day's sales amounted to 300,000 yuan. The above two brand strategy models have their own strengths and shortcomings. Nowadays, it is indeed a difficult choice in front of manufacturers and distributors. How to win a blue sky in a crowded market is worth pondering.

The new round of regulation and control began, shuffling immediately. More and more domestic decorative hardware companies, and the way to follow the succession of rolling rails, building materials market is dotted, hardware business has mushroomed. It is clear that the entire industry is already in an imbalanced state where supply exceeds demand, and competition is fierce. What is even more worrying is that many manufacturers do not have innovative R&D capabilities and sustainable development strategies. They just blindly copy and copy, and their product processes and styles are almost identical. The homogeneity of the entire market is very serious, and the business model is single and conservative. The hardware industry has entered the Red Sea market and entered vicious competition for prices.

On October 1, 2010, the author learned about the development of the market at the Lai Bodun shower room in the Daming Palace market in Xi'an. Purchasing staff Jiffy believes that the new real estate policy will definitely affect the sanitary ware market, but there will be a lag period. determine. However, for consumers with high spending power and rigid demand, the impact will not be too great. In the author's survey of nearly 20 markets, 70% of the merchants reported that they did not have much influence, especially in the secondary and tertiary markets, and the impact was very small. Because the real estate market in the second and third-tier markets has not gained much.

But there is an impact in the first-line market. Manager Wang of the Grand Wuhan Home Decoration Gold Store introduced that in April 2010, the state and local governments increased their control over real estate, which had a greater impact on the Wuhan sanitary ware market. Before the company's sales in January were more than 800,000 yuan. After real estate regulation was implemented, sales fell by 30%.

However, there has been a big recovery since September. The strength of real estate regulation and control will continue to increase and will push the industry to reshuffle. It is understood that from the beginning of the financial crisis in 2008 to the present, there are more than 100 companies that have closed, stopped, merged and transferred in Jiangmen area. Ma Huilian, general manager of Kaiping Hewlett-Packard Sanitary Ware Industry Co., Ltd., believes that the current competition in the sanitary ware market is very fierce. If the previous price war is still used, enterprise products will not have long-term survival and development without core competitiveness.

Do not put eggs in a basket In 2011, China's hardware industry gradually out of the financial crisis, the domestic and foreign markets gradually warming up, China's hardware companies in the maintenance of Europe and the United States and international markets, but also gradually look abroad for more Market, and in the domestic market to increase channel and brand building efforts to avoid the recurrence of "all eggs loaded in a basket" lesson.

Market infrastructure in Central and Eastern Europe led to strong demand for hardware. According to a recent report by the Financial Times in the UK, due to the crisis, CEE companies hope to find cheaper sources of supply. The government also hopes to attract more foreign investors, and China is increasingly becoming their primary choice.

We know that infrastructure construction cannot be separated from the support of the hardware industry. It is understood that in Central and Eastern Europe, there are relatively few trade protectionist barriers. At the same time, it has good infrastructure and human resources. In the future, economic development will be faster and it will have stronger investment attraction.

Strong market demand in Africa can be low-cost intervention. Now Africa is in a stage of development similar to China's in the 1970s. The demand for consumer goods is particularly strong. Almost all African countries have large demand for light industry, textiles, clothing, hardware, watches, bedding, home appliances, electronics and other products. For example, a deputy minister of Nigeri used to buy things from Europe, but since he first came to China in 2005, he has been fond of Chinese products. He is now coming to China 3 to 4 times a year. His home has recently been renovated. The materials used for the renovation are all made in China, including sanitary ware, lamps, paints, hardware, furniture and even metal stairs.

Hardware companies should actively increase technological equipment updates and product updates, complete the development of products from low-grade products to high-end products as soon as possible, avoid anti-dumping and other trade barriers, and gradually increase their ability to resist market risks and develop international markets, and constantly improve the export efficiency of products. .

At the same time, we will expand the expansion of domestic sales channels, foster strengths and avoid weaknesses, combining internal and external forces. Establish product advantages, operate with integrity, and build brand awareness. Overcome short-term behavior and overcome chance. While improving the quality of products, we have stepped up publicity efforts and strive to create our own brands, and we have obtained more recognition from domestic and foreign companies and distributors.

File upgrade is imperative On April 8th, when the author was interviewed in the Shunde Xipus sanitary ware, the relevant person in charge of the company stated that so far, the company's products have not yet increased its price. Although profits have been reduced, but the company's reputation is maintained, but also for the interests of dealers and trust, which is conducive to long-term cooperation between manufacturers. Faced with rising costs of oil, mineral resources and transportation, some manufacturers in Shuikou have expressed their desire to raise the ex-factory price of products. Some companies are concerned that if other enterprise products do not raise prices, they will rush to increase their prices and will be in a passive position in the competition. After all, in the face of the status quo of many brands and fierce competition, raising prices is not a simple matter. It can only be an emergency in the short term.

I understand that Kaiping's Dugao Sanitary Ware, Hanmaike Sanitary Ware, Minglang Sanitary Ware and other companies have actively taken technical innovations to ease the pressure caused by some of the rising costs. Strengthen quality control, reduce waste and other aspects of the gradual decompression. Therefore, if the company wants to develop for a long time, it must pay attention to its own development and construction, promote the adjustment of the industrial structure of the company, and accelerate the upgrading of product structure through strengthening technology research and development and innovation. It is imperative to adjust the industrial structure and improve the market competitiveness of hardware products.

Seizing the opportunity to take advantage of the above pressures such as inflation, high house prices, and export frustration, but because China is in rapid integration and development, and I am currently in the development of the global “emerging economies”, plus With the effect of the state’s investment of RMB 4 trillion, China’s overall economic development has steadily increased.

Not long ago, the author participated in a conference in the hardware and sanitary ware industry. Many corporate executives agreed that the more the market is weak and trough, the better the opportunity for investment and expansion, because at this time, the province has the most investment, the most choices, and returns. Will also be the biggest. Now, 30% of enterprises in the industry have formed a certain scale, and production and sales are steadily increasing. The regulation of the real estate market is an opportunity for companies to expand and develop; 40% of enterprises are in the development bottleneck, and they need breakthroughs and innovations. Faced with many uncertainties, seizing opportunities will allow us to take advantage of the situation.

An industry source said that rents, materials, oil prices, and rising wages are indeed unavoidable issues for domestic decoration hardware companies. This is directly related to the survival and development of enterprises. But everything has its two sides. If we deal with the law, broaden our ideas, increase revenue, reduce expenditure, and the more difficult it is, the more we must adhere to it, staking its position, attach importance to promotion, and pay attention to brand building. Only in this way can we achieve development. The opportunity to move toward the spring of development.