Outward Development of Hardware Manufacturing

With the acceleration of China's integration into the global economic environment and the rapid rise of economic strength, China has become the most dynamic economic region in the world. China's economic facilities are relatively complete, its industrial development is relatively mature, and its labor costs are relatively low. It has the comparative advantage of becoming a global hardware manufacturing center, and its outward-oriented development characteristics are obvious.

In an environment of global competition, industrial capital is another subject of industry operations in order to obtain a favorable competitive position and improve competitiveness. In 2004, Supor and Vantage went on the market successively. Hongbao was also working hard for the listing. Wanhe's capital market operation will not stop due to the failure of restructuring with Yuemei. From a capital perspective, the current major feature is the expansion of capital. From the point of view of competitive behavior, cooperation in resource sharing among enterprises is increasing. As a result, capital operations in the industry will tend to be active.

Another trend is that corporate polarization will further intensify. The next few years will be the high-speed oscillation period of the hardware industry. The direct consequence of this high-speed shock is the expansion of the polarization trend in the current hardware and kitchen brand camp. It is expected that the hardware companies that can really survive in the market in the next few years will definitely not be so much now. However, this high-speed oscillation in the hardware industry will bring huge opportunities. The result of the shock will make the market operation more rational.

Due to the oversupply of domestic hardware and kitchen products and the increasing pressure on quality, sales channels have become one of the key competition factors, and competition for channels by all parties has become increasingly fierce. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales expenses, and make sales channels more professional. The company's sales model has been able to adapt to multiple markets at the same time. On the other hand, the development trend of the sales industry has led to the continuous rise of the status of large-scale home appliance chain stores, increased control over the industry, and participation in the price competition that was previously dominated by manufacturers.

Large retailers, with their broad market coverage, purchasing scale, and cost advantages, will increasingly control the production companies in terms of product pricing, payment, and delivery. At the same time, the requirements of the international market for China's hardware products will gradually evolve and change. There will be higher requirements for the quality, packaging, and delivery deadlines of Chinese products, and even gradually extend to the production process and product development, and the products and the environment , energy resources, and humanities combined.

Domestic hardware companies, in order to increase their own strength and expand the international market faster, will accelerate the integration with foreign companies through various means to improve product quality and competitiveness. While continuing to expand markets in the United States, Japan, and other traditional countries, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom.

Overall, China's hardware industry will continue to maintain the momentum of structural adjustment, but at the same time it will continue to highlight some bright spots. The polarization of hardware companies will intensify, and some companies that do not adapt to market competition will withdraw from market competition through different channels, and hardware giants will gradually surface.