China's hardware products industry is committed to being a high-end brand

Oct 08, 2020

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      Through the development of the "Twelfth Five-Year Plan", the metal products industry continues to expand the overall scale and gradually begins to enter mature and stable growth. The "Thirteenth Five-Year Plan" period is a critical period for the hardware industry to grow from large to strong. The domestic and international environment and the development of the industry have undergone major changes. Whether it is promising and facing major strategic opportunities, it also faces many contradictory challenges.


     The "China Hardware Industry," the 13th Five-Year Development Guidance issued by the Hardware Products Association (hereinafter referred to as the "Opinions") stated that during the "13th Five-Year" period, the hardware industry will continue to strengthen structural adjustments, transformation and upgrading, and work to improve efficiency. Promote the industry to move towards the high-end industry.


     From "follow" to "guide"


     The "Opinions" pointed out that at the end of the 13th Five-Year Plan period, competition will become more intense in the complex international environment. China's hardware products may face more trade barriers, technical barriers, trade barrier brands, channel barriers and exports of anti-dumping investigations. This requires that the domestic hardware manufacturing industry must accelerate the completion of structural adjustment and the pace of transformation and upgrading, and change the extensive economic growth and export model of "porters" in the past. The current demand for high-end hardware is recovering, while China’s exports maintain a competitive advantage and bring a higher level. It is a large-scale simultaneous world market that is going out. New comparative advantages must be cultivated so that exports can continue to play a role in economic development. Supporting role. This is of great significance to the "13th Five-Year Plan" of the metal manufacturing industry.


     At present, the competition around the commanding heights of science and technology and industrial development is becoming increasingly fierce, and our production model has undergone great changes. Technological innovation continues to give birth to new industrial organizations, industrial forms, business models, and the transformation and upgrading of China’s hardware industry. Innovation and development usher in major opportunities, and promote the establishment of all Internet of Things in the form of "Internet +" cooperation information and communication technology, "manufacturing The new ecology of "+Internet" advanced technology manufacturing is conducive to integration, using the Internet to organize enterprises, rebuild and realize on-demand and other industries, and promote new changes. As a major manufacturing country in the world, China has basic hardware conditions: in terms of quantity, Chinese hardware products supply half of the global consumer market; in terms of quality, some hardware products have reached or approached the international advanced level. However, the rapid development of the past two decades has also enabled the industry to solve some deep-seated problems. The long-term neglect of the brand has caused a channel where control in the international market has not been established.


     Generally speaking, China's hardware industry is in a complex and changeable international market environment, and competition and future challenges will become more intense. The industry should change the past to imitate the style and characteristics of subsequent development, guide innovation-driven development methods, fill in the shortcomings, and seek to enhance the original strength.


     Mass, the difference in transition


     Eleven major corporate hardware industries, in addition to range hoods, gas appliances, kitchen equipment, other products such as foreign trade dependence, construction hardware, tool hardware, household hardware, zippers, locks, stainless steel products, cooking utensils, sanitary ware and other products are very high . With the benefit of the transfer from the international industry, the industry’s exports have increased rapidly. For example, tools, construction hardware, and fastener products have accounted for nearly half of the international market. From the influence law of economic development, human resources, natural resources, institutional arrangements and economic policies, the further development of supporting industries is changing. It can be seen from the analysis of the production factor structure of labor and capital that technological progress, The export growth of the hardware industry must slow down. In terms of total volume, China's hardware products industry has ranked first in the world, so the industry will no longer have explosive growth in the next five years.


     In the "13th Five-Year" hardware industry will face a series of challenges.


     Some traditional hardware production areas are relatively extensive and backward, with low resource and energy utilization efficiency, and greater pressure on energy conservation and emission reduction. In the past, energy resources and environmental space were relatively large, and the environmental carrying capacity had reached or approached the upper limit. The formation of a new green and low-carbon development cycle must be promoted.


     The forecast of product supply is structurally contradictory, and the situation of redundant low-end and high-end demand cannot be improved. The long-standing shortage of supply that was the main contradiction in the past. Therefore, the optimization and upgrading of the industrial structure must continue.


     The innovation ability is not strong, and the innovation system for enterprises is not sound. New product development and scientific research, new products and new growth rates are relatively slow. At present, China's imitation wave consumption stage has basically ended, and personalized and diversified consumption has become the mainstream to ensure product quality and safety, significantly increasing the importance of activating demand through innovative supply. Except for some kitchen appliances, the brand influence is weak. There are more OEM products and less influence in the brand world. When the ability to control export channels is not strong, it is easy to be affected by unfavorable factors in the international market and needs to be strengthened to withstand risks. High-end equipment, core technologies and high-quality industries, and key raw materials still rely on imports. Labor costs are rising. Through the introduction of equipment, transformation, and improvement of automation, the dependence on labor is reduced. In the past, low labor costs were the biggest advantage of the hardware industry. The introduction of technology and management can quickly become productive forces. The aging population is developing, reducing agricultural surplus labor, reducing the size of the driving force of components, and growth will rely more on human capital and The quality of technological progress. Intelligent manufacturing and intelligent products have just started, and systems need to be improved to lead the development of the market.


     In the industry, during the "13th Five-Year Plan" period, it is necessary to change the quantity expansion and price competition that relied on the situation in the past, and gradually shift to a quality type. Based on the transformation of differentiated competition, through transformation and upgrading, structural adjustment and active awareness, the formation of uniformity should be accelerated. Transparent and orderly regulate the trade order and market environment, and take a more active attitude to face challenges from all sides.


The metal products industry, eleven is related to people's daily life, the main products of clothing, food, shelter, use, and transportation, and the indispensable necessities in daily life. Therefore, looking at the big prospects of development from an industry perspective, products related to people's livelihood are a promising sunrise industry, but to realize the gradual shift to high-end, shortcomings must be made up, which is also a basic support. This is to enhance the quality and efficiency of the supply side.


     High-end sprint


     "Opinions" key tasks "13th Five-Year" hardware industry is still reorganizing. In order to improve quality, establish a brand, improve efficiency, increase research and development efforts, promote traditional enterprises, and improve efficiency, and strive to complete China from a substantial change in hardware manufacturing power during the "13th Five-Year Plan" period. In order to meet the domestic market, especially the market's consumer demand for high-end hardware products. To further expand the international market share, we must cultivate a number of competitive and influential brands in the international and domestic high-end markets.


     Improve product quality and stability. At present, the quality of this product and the overall quality of the Chinese hardware industry have improved significantly in the past, but compared with foreign high-end products, there is a large gap in product quality; the quality of the product is also unstable, and some use only consider the cost. Yes, the materials of mold processing and other related technologies and process management tools are also relatively low-quality standard products that are widely used. Improving product quality, improving product quality and stability is first of all thinking. If a company does 30% of the high-end market, it can lead to 60% of the business. Now more than 90% of the domestic high-end market is foreign brands. 2. Improved and stable quality. These two are inseparable from advanced manufacturing equipment to ensure that the status quo of the development of the equipment manufacturing hardware industry is very unbalanced. Many of the unbalanced emerging industries are manual workshops. The ubiquitous single step is still in the "2.0" era. Third, to improve quality, there must be a high-quality product standard, and the law of product quality standards, only high standards, guide the production of the industry. Fourth, improving product quality and innovation awareness must also be strengthened. In order to seize power, there is no core technology, no job, no more good products that can't work normally, and what you want to do has made a good product in China, we must increase our sense of innovation.


     Establish a brand. Branding is a fatal flaw in the competition between the Chinese hardware industry and foreign brands. Some of our products are very good, but they are sold at good prices. Because brand awareness has not been established in the minds of consumers. Branding does not happen overnight. There must be a long-term precipitation process. For more than 30 years, the range hood and gas stove industries have been promoting traditional Chinese cooking habits and food culture. Now China's high-end kitchen appliance market is a national brand. In the high-end market mentioned here, price refers to guiding, allowing foreign brands to price our products. Other industries are also national brands, such as these two, let the price come down with our pricing.


     Pursue high efficiency and high added value. To be an enterprise, it must be effective, so that it can develop sustainably. Production efficiency still depends on research and development. Regardless of the store, online sales are worth mentioning, that is, there is a final profit, and no profit distribution is actually a waste.


     Innovate and improve the coordination mechanism for the development of the industrial chain, leading the industry to transition to service-oriented manufacturing. The chain includes the value chain, the supply chain, and a large number of exchanges and mutual values between the upstream and downstream of the industrial chain. During the "Thirteenth Five-Year Plan" period, the industry will establish a coordination mechanism for the development of target work throughout the industry chain. Without quality and branding, in order not to be eliminated from the industry, it is also a choice to adapt to the current adjustments and to have a strong business ability. In certain specific aspects of the industry chain, it is also an option to be refined, optimized, and complete supporting services. In industrial cluster areas, enterprises of different sizes, material supply and demand, and supporting coordination mechanisms between upstream and downstream industrial chains should be established to avoid homogenization of competition.


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