The Two Main Reasons That Lead To The Oversupply Of China's Hardware Industry

At present, the profits of hardware enterprises are gradually reducing, one is due to the industry overcapacity, the market oversupply, on the other hand, homogenized products flooded the market, lack of high value-added, humane design of high-end products. According to relevant information research and understanding, in recent years, the development pattern of China's hardware industry is quietly changing, before the supply of supply, has gradually become oversupply.

At present, the profits of hardware enterprises are gradually reducing, one is due to the industry overcapacity, the market oversupply, on the other hand, homogenized products flooded the market, lack of high value-added, humane design of high-end products. According to relevant information research and understanding, in recent years, the development pattern of China's hardware industry is quietly changing, before the supply of supply, has now gradually become oversupply, the industry has overcapacity problems. The main reasons: First, because of the industry overcapacity, the market oversupply, on the other hand, homogenized products flooded the market, lack of high-value-added, humane design of high-end products. Industry insiders said that the future of China's hardware products export trend, will be high value-added products to replace low value-added products. At the same time, the current development of the industry is tending to scale and diversification, to seek sustainable development, industry transformation and upgrading, increase technical input and improve product quality has become the inevitable 2016 Uzbek Tashkent International Plastic rubber industry exhibition.

Question 1: Overcapacity.

From the China Electrical and Mechanical Products Import and Export Chamber of Commerce (the Chamber of Electrical and Mechanical Commerce) learned that the current Chinese hardware industry presents large-scale and diversified development, bid farewell to the previous high-speed growth trend, there is an oversupply situation. It is understood that China's larger hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces and cities. Such as Zhejiang Yongkang Metal Electrical and Mechanical Production Enterprise Cluster, Shandong Linyi Hardware Market, Hangzhou New Century Lock market, Shanghai Hardware Electrical and Mechanical Trade City, Chengdu Jinfu Hardware Electrical and Mechanical City, Guangdong Guangfu Hardware And Electrical City and so on. At present, China's daily hardware products industry has entered the forefront of the world.

According to industry insiders, the hardware industry has bid farewell to 10 years of rapid development period, with the deepening of competition between related enterprises, the metal industry chain at all stages of the profit margins are compressed, price reduction space is decreasing. At the same time, the international market requirements for China's hardware products have gradually changed, the quality of China's hardware products, packaging, supply period have higher requirements, and even gradually extended to the production process and product development links. Industry insiders say that a few years ago most small and medium-sized enterprises still had about 20 per cent of profits, but now profits have fallen below 10 per cent.

Question two: brand clutter, chaos, more.

Looking at China's small and medium-sized hardware enterprises, most of the production of accessories, lack of independent brands, homogenization of serious competition, many enterprises lack bargaining power, in the high CPI, high costs and the RMB exchange rate of the new high environment, the pressure is growing. In this context, the transformation and upgrading has become the inevitable trend of the future development of the industry. Industry insiders expect that the future of China's hardware exports face new changes, will be high-tech products export growth, the original low value-added hardware products will be replaced by a number of high-tech high-value-added exports.

Development status quo: increase technology investment, create independent brands, change the development model.

From the Mechanical and Electrical Chamber of Commerce learned that the construction of hardware professional market throughout the country, has basically formed the origin and circulation type, large and small and medium-sized, integrated and single reasonable combination, complementary pattern. Take Tianjin Hardware Market as an example, Tianjin's International Hardware And Electrical City, New South Road Hardware City, Northern Hardware City and Pearl River Hardware City four hardware professional market, annual sales total in more than 20 billion yuan. The diversification effect of these four major markets not only gathers more than 60% of tianjin's hardware merchant operators, but also introduces well-known brands at home and abroad into the Tianjin market, forming one of the largest hardware industry wholesale bases in northern China.

Relevant information shows that in recent years, 2016 European Mold Exhibition in Dusseldorf, Germany, China has established zippers, electric shavers, stainless steel utensils, iron pots, blades, bicycle locks and other 14 technology development centers, as well as pressure cookers, electric shavers, lighters and other 16 product centers. At the same time, China has gradually become the world's hardware processing countries and export countries. It is expected that by 2014, China's export slower exports of hardware and other related products will grow at about 10%.

Experts said that if enterprises want to win in the competition, must do the following three points: First, to ensure the quality of products, this is the lifeline of enterprises.