China's hardware industry will show a six characteristics of competition "Internationalization of the domestic competition, domestic and international competition," the next few years will be the development of China's hardware industry characteristics, and will present six major trends.

 

First, China as a global centre for hardware manufacturing will further solid. As China's integration into the global economic environment and the accelerated process of the rapid rise of economic strength, China has become the world's most dynamic economic region. China's relatively sound economic infrastructure, industrial development more mature and lower labor costs, has become a global hardware manufacturing centre of the comparative advantages, development of export-oriented manufacturing hardware features clearly. Centre to strengthen the status of the first performance of hardware products in recent years the overall export growth: The main hardware products are higher than the export growth rate of output growth, higher sales in the domestic market growth; major hardware appliances full bloom, Not only power tools, hand tools, construction hardware products such traditional export product categories increased very high, but not before the proportion of export products, kitchen and bathroom products in 2004, export growth is also very obvious. A huge market and the centre of gravity will further attract multinational companies manufacturing hardware to the Chinese Centre for the transfer.

 

Second is the industry's capital operation will become more active, cooperation between enterprises will be significantly strengthened. In the global competitive environment, in order to obtain favorable competitive position and improve its competitiveness, industrial capital industry is running another theme. 2004 Supor, has listed Hua Di, Hongbao is also listed for the positive efforts million and the capital market operation with the Guangdong will not be because of the U.S. failure to stop Blair reorganization. From the capital perspective, the current major feature is the expansion of the capital intensified. From the competition, the sharing of resources among enterprises of cooperation on the increase.

 

Third, enterprises will be further intensified polarization. The next few years will be the hardware industries of high-speed shock phase, which bring high-speed shock result is a direct consequence of the current hardware in the camp kitchen and toilet brand to expand the trend of polarization. Is expected the next few years can really survive in the market, the hardware business is absolutely no so much now. However, this high-speed hardware industry shocks will bring great opportunities, so that shocks will be the outcome of the operation of the market more rational.

 

Fourth, the sales channels will be a profound change, the channel between the competition increasingly intense. Hardware kitchen and toilet products due to domestic oversupply, increased pressure on quality, sales channels into one of the key competitive factors, the channels for the parties to the increasingly fierce. On the one hand, kitchen, the manufacturer to strengthen the control of the retail end, and strive to reduce the marketing chain, saving cost of sales, sales channels to develop in the direction of professional, business sales in the model can also adapt to diverse market direction. On the other hand, the development trend of industry sales of major home appliances chain stores so that the rising status of the industry enhance the ability to control, participation and triggered a previously led mainly by manufacturers of price competition. Large retailers, with their broad market coverage, the scale of procurement and cost advantages, product pricing, payment settlement, and other aspects of production enterprises of control will be growing. At the same time, the international market to the requirements of China's hardware products will gradually develop and change, the quality of Chinese products, packaging, delivery period will have higher requirements, or even gradually extended to the production process and product R & D, product and environmental protection , Energy resources, human environment together.

 

The fifth is to price competition in the market will be mainly to the high-quality, high-technology content of products. As the competition in-depth, hardware industrial chain stages of the profit margins are compressed, increasingly less room for price cuts. More and more enterprises recognize that price competition can not rely solely on the establishment of core competitiveness, not long-term development direction, thus strive to explore a new path of development. Many hardware companies increased technical inputs, development of new products with high technological content, product differentiation as a long-term plan for the development of enterprises to seek new market demand, the establishment of a new economic growth points (such as access to small home appliances and Similar to other industries), in order to achieve the sustainable development of enterprises.

 

Sixth, the integration of domestic and foreign enterprises will be further accelerated. Hardware domestic enterprises to improve their own strength, more quickly expand the international market, through various means to accelerate the integration and foreign enterprises to improve product quality and enhance our competitiveness. To continue to expand in the United States, Japan and other traditional markets, while in Southeast Asia, the Middle East, Russia, Europe and Africa, will be fully blossom.

 

Overall, China's hardware industry will continue the momentum of restructuring, but will keep some bright spots. Hardware companies will be growing polarization of the situation, a number of meeting market competitiveness of enterprises through various channels to withdraw from competition in the market, and hardware giant will gradually surface.