Analysis of the Flushing Phenomenon of Domestic Hardware Industry

Hardware is an important accessory for the sanitary ware industry, especially the faucet plays an important role in people's daily life. When the storm comes, some fragile birds are unsustainable; however, Gorky’s penguin shouts: “Let the storm come More violent!” Similarly, survival of the fittest is the law applicable to business. Some companies import the "flowing tide" flood, while the other part of the "sea swallows" are faced with cruel environmental brave growth, blood and tears, transformation and upgrading.

How should small and medium-sized hardware companies face the "storm":

(a) Build a brand. To say a thousand and 10,000, the brand is a long-term survival of the company's spinal cord, is a company's "calcium", the consequences of calcium-deficient business is to get "cartilage disease", how to stand up the backbone, the brand is the key. Can withstand the test of time, most of the remaining companies are brands, such as Zhang Xiaoquan knife, Yangjiang knife and scissors.

(b) The small and medium-sized hardware companies will optimize their products, from winning by quantity to winning by quality. Many labor-intensive enterprises in China rely on OEMs to survive. A commodity only extracts a few bucks or even a few cents of its profits. The cost increases will not be able to make ends meet; there are also some companies who are trying hard to sell their goods so that they will bear the "dumping" lawsuit. It seems to be worth some losses. To embark on the ranks of high-end products, naturally increase profits and jump out of the "small profits but quick turnover" cycle.

(c) ** Open up new outlets. For example, Ningbo Fastener Industry Association and China Export Credit Insurance Corporation Ningbo Branch signed a cooperation agreement. This means that the fastener industry's exports will receive comprehensive and preferential support from the credit insurance policy. Or companies can develop together and help each other to use the 1+N model to follow the leading companies. As long as you think, persist, believe that you can overcome difficulties. Ningbo Nanluo Jiantong Fastener Co., Ltd., located in Hengxi Town, Yinzhou District, Ningbo City, Zhejiang Province, has successfully pledged the exclusive rights of the trademark with its own well-known trademark “JT”, and obtained 3.86 million yuan of credit from Luzhou Bank. Since the introduction of the Pledge Policy for Exclusive Rights in Trademarks in Zhejiang Province, the first case of success in the use of trademark intangible assets in the region was reported.

Small and medium-sized hardware enterprises in the small and medium-sized hardware enterprises face high pressures:

(a) The price of raw materials keeps rising. The year 2011 was a year of increasing sound. Iron ore was climbing all the way back to the international barometer. This puts pressure on the hardware industry downstream of the industrial chain. The vast majority of the hardware industry will be involved in iron ore; the price of oil is soaring. This is a great waste of energy for the high-energy-consuming hardware industry, and it also affects the hardware industry's logistics transportation to a certain extent; the rare earth price skyrocketing, causing serious losses to lighting companies and wind power equipment companies downstream of the industrial chain. Some companies have switched to "hoarding of rare earths," which is comparable to gold treatment.

(b) Increase in labor costs. Most of the hardware industry is a labor-intensive industry, which requires a large number of employees to “stand in” the industry chain to maintain normal operation. However, in this age of 80s, this group of young people who are “beloved” by their parents are mostly unwilling to engage in The pressure of heavy physical labor and adult survival costs has led to an increase in wages in the hardware industry. Even many companies are unable to retain the high-paying talents; in some hardware companies with advanced automation processes, they are also faced with the "labor shortage". Skilled technical workers, or technical talents, “Jian Jian Tianya” also need high wages to retain. This is a faint pain for hardware companies, especially small and medium-sized hardware companies.

(c) The continuous appreciation of *** and the upward movement of central bank interest rates. *** Appreciation is also a hurdle for foreign trade-oriented SMEs. For small and medium-sized hardware companies, the increase in cost will have to increase the sales price, and the appreciation of *** against the U.S. dollar should only be based on an increase. Considering the exchange rate, I'm afraid that such price increases will affect the affordability and purchasing ability of foreign companies. Moreover, due to the European debt crisis, U.S. stock prices have plummeted, and the global financial environment is so unstable that this is worse for small and medium-sized hardware companies; Interest rates raise interest rates several times a year, it is the small and medium-sized hardware companies also carry a heavy burden on the back, making it even more difficult, so that the situation of small and medium-sized hardware companies in the "layers of the waves" of the collapse of the rumors continue to hit , Small and medium-sized hardware companies miserable, like a pursuit of the "prince of interests," the mermaid, in order to survive and dream, struggling to support on the tip of the knife, dancing, looks very beautiful, in fact, every step in the blood.