At present, the profits of hardware enterprises are gradually decreasing. First, because of overcapacity in the industry, the market oversupply; On the other hand, the market is flooded with homogenous products, lacking high-end products with high added value and humanized design. Industry insiders said that in the future, China's export trend of hardware products will be high value-added products to replace low value-added products.

In recent years, the development pattern of China's hardware industry is quietly changing. Previously, it was oversupply, but now it has gradually become oversupply. There is overcapacity in the industry. At the same time, industry insiders pointed out that the current development of the industry is tending to scale and diversification. If we want to seek sustainable development, it is inevitable to transform and upgrade the industry, increase technology investment and improve product quality.

excess production capacity

At present, China's hardware industry is developing in a large-scale and diversified way, leaving behind the previous high-speed growth trend, and there is an oversupply situation. It is understood that China's large hardware markets are mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces and cities. For example, the hardware and electrical manufacturing enterprise cluster in Yongkang City, Zhejiang Province, Linyi Hardware Market in Shandong Province, Hangzhou New Century Lock Market, Shanghai Hardware and Electrical<Classification 2=Trade City, Chengdu Jinfu Hardware and Electrical City, Guangdong Guangfo Hardware and Electrical City, etc. At present, China's daily hardware industry has entered the forefront of the world. According to relevant data, in recent years, China has successively established 14 technology development centers, such as zippers, electric shavers, stainless steel utensils, iron pans, blades, bicycle locks, and 16 product centers, such as pressure cookers, electric shavers, and lighters. At the same time, China has gradually become one of the largest hardware processing and exporting countries in the world. It is estimated that by 2013, the export growth of China's hardware and other related products will remain at about 10%

The construction of specialized hardware markets across the country has basically formed a pattern of reasonable matching and complementing each other in terms of origin and circulation, large and medium-sized and small, comprehensive and single types. Taking Tianjin hardware market as an example, the four major hardware professional markets in Tianjin, including International Hardware and Electrical City, Xinnanma Road Hardware City, North Hardware City and Pearl River Hardware City, have an annual sales volume of more than 20 billion yuan. The diversification effect of these four markets not only gathered more than 60% of hardware merchants and operators in Tianjin, but also introduced all famous brands at home and abroad into the Tianjin market, forming one of the largest hardware industry wholesale bases in northern China.

Increasing technical input is the key

According to industry insiders, the hardware industry has said goodbye to the 10-year period of rapid development. With the deepening of competition among relevant enterprises, the profit space at all stages of the hardware industry chain has been compressed, and the price reduction space is decreasing. At the same time, the requirements of the international market for China's hardware products have gradually changed, with higher requirements for the quality, packaging and delivery period of China's hardware products, and even gradually extended to the production process and product research and development. Industry insiders said that a few years ago, most small and medium-sized enterprises still had about 20% profit, but now the profit has dropped to below 10%.

Taking a comprehensive view of China's small and medium-sized hardware enterprises, most of them are mainly engaged in the production of spare parts, lack of independent brands, serious homogenization competition, and many enterprises lack bargaining power. In the context of high CPI, high costs and the new high RMB exchange rate, they are facing increasing pressure. In this case, transformation and upgrading has become the inevitable trend of future industry development. Industry insiders predict that the new changes that China's hardware products export will face in the future will be the growth of high-tech products exports. The original low-value-added hardware products will be replaced by a batch of high-value-added export products with high-tech.

Experts said that if enterprises want to win in the competition, they must do the following three things well: first, ensure the quality of products, which is the lifeline of enterprises; The second is to clarify the needs of consumers and develop products with their own characteristics to meet consumer needs; The third is to strengthen its own management. Enterprises, regardless of size, must get rid of the extensive development model.