Hardware market should develop to high-end brands

With the continuous opening of the hardware market, business warfare has intensified and a large number of foreign hardware companies have entered the Chinese market to open up new fields. In response, Luo Baihui, the secretary-general of the International Mould and Hardware and Plastic Industry Suppliers Association, said that facing the competition in the market, how to be invincible in such fierce competition has become a problem that all high-level decision makers in hardware companies have to think about. . Creating China's own brands that are commensurate with the market is an issue that we urgently need to address.

After more than 30 years of hard work, China's hardware industry has become a veritable hardware country. After joining the WTO, with the reduction of import tariffs, foreign high-quality hardware products will be driven straight into China’s hardware companies are facing a transition from a big hardware country to a hardware powerhouse. Brand and industry regionalization wings. China's export of hardware products only earns 3% of total exports, not only the problem of technological content, but more importantly, brand issues. According to Luo Baihui, the secretary-general of the International Die & Metals and Plastics Industry Suppliers Association, the brand includes a lot of content, including service and reputation. Reputation is golden, and honest business is fundamental. If we produce hardware products that don't carry people's brands, but sell them under their own brands, and they can sell at the same price as OEM, then our GDP will double.

Luo Baihui believes that the involvement of large consortia is a key factor in making China's hardware industry bigger and stronger. Japan’s Panasonic and Sony did not originally engage in electrical appliances, but they were a large consortium. After seeing the prospects for the development of household appliances, they all stepped in, and now they dominate the world.

With the entry of the WTO, a large number of well-known international brands will also be flooded into China. This is what we often call wolf. The wolf is not terrible. The key is that we must block it. The development of the production and marketing of China's hardware industry must conform to the trend of domestic and international to internationalization, and use new marketing to drive the development of the enterprise and create an international concept. At present, China's hardware products have hardly ever played an international brand. Like Zhejiang Yongkang, although it enjoys a good reputation at home, it is still Zhejiang Yongkang, not China's Yongkang, and has not yet gone abroad.

It is believed that after a period of hard work, there will be more and more brands of Chinese hardware products in the international community. Although China has become the manufacturing base of the world's hardware, the vast majority of our hardware products are still in unbranded or brand-name products. Compared with the hardware products of developed countries such as Germany, South Korea and the United States, there is still a big gap between us. The competitive advantage in the market is still to rely on low prices to win, the added value is very low, which is similar to the development stage of the hardware industry in Japan and South Korea in the 60-70s.

However, we cannot always rely on low prices or OEM processing. We must upgrade the industry to meet the needs of the market. In recent years, hardware products from many developed countries have entrusted us with processing, indicating that China’s hardware manufacturing industry is not low. The key is our lack of brand awareness and lack of well-known branded products worldwide.

As the hardware market is a direct window for the development of the hardware industry, and plays a role in guiding industry trends, Luo Baihui believes that it must have an international perspective to develop the market and allow our products to participate in the international market competition environment, in this regard Zhejiang Yongkang China Hardware City is at the forefront. We also organized several companies to participate in Las Vegas in the United States in May this year to guide their products into the international market. Each year, the import and export volume of the hardware industry in Tianjin amounts to several billion US dollars, and most of them enter the countries and regions of Southeast Asia, Northeast Asia, the Middle East, and Africa. China’s northern hardware city will make full use of the advantages of Tianjin’s international port to guide the hardware industry to The development of medium and high-end brands has formed some national brands of hardware products, making it a modern, professional and international hardware logistics headquarters base.