In the marketing practice of the hardware and electromechanical industry that I have experienced for more than ten years, I have discovered a phenomenon that this industry has always been vibrant on the surface. Every company seems to always be in short supply, but behind the surface prosperity, the industry’s The pattern has been quietly changing. These changes are mainly reflected in three aspects. On the one hand, the degree of concentration of the industry is increasing. On the second hand, the process of product homogenization is gradually improving, and the third aspect is that the level of consumer spending is gradually increasing.
However, this industry still has a long way to go compared with the high concentration of advanced industries. The enterprises that have temporarily stayed before have not yet reached a certain level of success. The reason, I think, is the following:
First, the "one low, two high" industry characteristics, resulting in the industry's low-level competition will remain fierce. Due to the low barriers to entry, both manufacturers and distributors continue to have a large influx of potential entrants. Coupled with temporary enterprises, due to limitations in the quality of the boss, lack of talent, lack of innovation, many companies have experienced the ceiling of growth, to the last boss physically and mentally exhausted, companies dilemma. A steady stream of new entrants, holding a pair of "footless shoes that are not afraid of fear," and the mentality of "not afraid of suffering without losing" gradually eroded the predecessors' territory. This drama will be performed throughout the country in the past, present and future. As the ancients said, the waves of the Yangtze River pushed forward and a new generation of people replaced old people.
Second, as large corporate brands are basically divided up, those new generations of salesmen will inevitably have to look for new brand agents. This objectively creates a huge market demand. At the same time, it objectively leads to the birth of new manufacturing companies, or It seems that new manufacturers can always find agents.
Third, with the progress of the times, the product quality of the upstream supporting enterprises in the hardware and electromechanical industry is also continuously improving, and the process of homogenization has been accelerated objectively.
Fourth, because of the large and comprehensive model, the costs of companies that are temporarily ranked are still high. Taking electric tools as an example, companies that are temporarily ahead of the rest will basically do everything except that copper wires, commutators, bearings, standard parts and raw materials are not produced by themselves. In the short term, it is advantageous to ensure product quality, but from the long-term point of view of the increasingly fragmented social division of work, it is not conducive to the sustainable development of enterprises. In addition, the financial costs and human resources costs of large enterprises are not comparable to small enterprises. If a company cannot quickly convert costs into economies of scale, the market position will eventually be insecure. From the salesman's point of view, as the market changes, many sellers expand their projects independently or involuntarily. Nowadays, dealers can not wait to do everything in the industry, but many suffer from indigestion.
Fifth, the prevailing market for sales has become an industry problem. Since retailers in the industry started out basically as small businesses, they basically rely on upstream support to develop. It is an indisputable fact that a seller with an annual sales of about 20 million has a receivable receivable of 1 to 2 million; a manufacturer with an annual sales of 30 million or so has a receivable amount of up to 10 million. As long as the management is slightly careless, the company will be dragged to death, dragged down, let alone innovation and development.
Hardware and electromechanical companies are faced with many challenges, wherever and where to go and look forward to people of insight.
However, this industry still has a long way to go compared with the high concentration of advanced industries. The enterprises that have temporarily stayed before have not yet reached a certain level of success. The reason, I think, is the following:
First, the "one low, two high" industry characteristics, resulting in the industry's low-level competition will remain fierce. Due to the low barriers to entry, both manufacturers and distributors continue to have a large influx of potential entrants. Coupled with temporary enterprises, due to limitations in the quality of the boss, lack of talent, lack of innovation, many companies have experienced the ceiling of growth, to the last boss physically and mentally exhausted, companies dilemma. A steady stream of new entrants, holding a pair of "footless shoes that are not afraid of fear," and the mentality of "not afraid of suffering without losing" gradually eroded the predecessors' territory. This drama will be performed throughout the country in the past, present and future. As the ancients said, the waves of the Yangtze River pushed forward and a new generation of people replaced old people.
Second, as large corporate brands are basically divided up, those new generations of salesmen will inevitably have to look for new brand agents. This objectively creates a huge market demand. At the same time, it objectively leads to the birth of new manufacturing companies, or It seems that new manufacturers can always find agents.
Third, with the progress of the times, the product quality of the upstream supporting enterprises in the hardware and electromechanical industry is also continuously improving, and the process of homogenization has been accelerated objectively.
Fourth, because of the large and comprehensive model, the costs of companies that are temporarily ranked are still high. Taking electric tools as an example, companies that are temporarily ahead of the rest will basically do everything except that copper wires, commutators, bearings, standard parts and raw materials are not produced by themselves. In the short term, it is advantageous to ensure product quality, but from the long-term point of view of the increasingly fragmented social division of work, it is not conducive to the sustainable development of enterprises. In addition, the financial costs and human resources costs of large enterprises are not comparable to small enterprises. If a company cannot quickly convert costs into economies of scale, the market position will eventually be insecure. From the salesman's point of view, as the market changes, many sellers expand their projects independently or involuntarily. Nowadays, dealers can not wait to do everything in the industry, but many suffer from indigestion.
Fifth, the prevailing market for sales has become an industry problem. Since retailers in the industry started out basically as small businesses, they basically rely on upstream support to develop. It is an indisputable fact that a seller with an annual sales of about 20 million has a receivable receivable of 1 to 2 million; a manufacturer with an annual sales of 30 million or so has a receivable amount of up to 10 million. As long as the management is slightly careless, the company will be dragged to death, dragged down, let alone innovation and development.
Hardware and electromechanical companies are faced with many challenges, wherever and where to go and look forward to people of insight.
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