By the end of the 1980s, the basic team consisting of more than 100 key enterprises and fixed-point companies in the tool industry had already formed the ability to produce 300 million high-speed steel cutting tools and more than 10 million measuring tools per year. The number of such tools has leapt to the top in the world. At the same time, our neighboring tool manufacturing country Japan, the annual output of high-speed steel cutting tools reached the highest record of 120 million pieces. Since then, due to the upgrading of the manufacturing industry, the demand for standard cutting tools has decreased, and the output has gradually dropped to 90 million pieces.
Hardware tools have entered the golden sales period In recent years, China's hardware and tools products have entered the golden sales period. In the past, no-name hardware tools were favored by African consumers. Nowadays, with the increasing number of rich people in Africa, the degree of hot selling of hardware tools is simply unimaginable. Hardware tools have gained a large market share in domestic and foreign markets with its affordable price and excellent quality.
After investigation, we found that in the design of the entire kitchen, 16% of the market demand will increase each year. It can be seen that there is still much room for development in the hardware industry. According to the hardware market survey, about 70% of the hardware product demand comes from house decoration, and 40% of the product depends on the supply capacity of some domestic hardware suppliers. In the world, the hardware industry is spending more on personalization, quality, and reasonable prices. Hardware is moving from the traditional tool industry to the fashion industry.
Innovation to improve their profitability As a retailer, we must understand the needs of the market and customers, and then develop solutions based on their needs. According to a survey of 80,000 consumers and the retail and hardware markets, about 70% of the hardware product demand comes from house decoration, and 40% of products depend on the supply capacity of some domestic hardware suppliers. More families want to see more hardware products offered by retailers. However, it is very regrettable that our market research is still very limited.
Conforming to the trend, hardware retailers have no choice but to provide creative tools to their customers to meet their individual needs. In the world, the hardware industry is moving from the traditional tool industry to the fashion industry. Consumption is trending toward personalization, quality, reasonable prices and more choices. It is a realistic choice for hardware retailers to improve their profitability through innovation. Some profitable retailers have begun to expand their business in different markets around the world in order to be able to establish a very healthy and stable system.
Although the number of structural grades for improving products and services is large, sales account for only about 30% of the total value of the domestic market. Although due to the brand and quality reasons, these products have not entered the formal manufacturing tool sales system at home and abroad, but they have caused a great impact on China's tool export market. Mistakes in the industry's strategy led to structural weakness in the market. The second major mistake in the development strategy of the tool industry is the unresponsiveness to the wave of big changes and major improvements in technology and international manufacturing. Did not seize the opportunity to timely upgrade the structure of China's tool products and services.
When the hardware tool industry in China transitions to modernization, it must also develop its own characteristics and start with small and specialized steps. In particular, current large and medium-sized tool companies should not overestimate their own strength. In the process of technological innovation and improvement of the competitiveness of enterprises, they must also pay attention to highlighting key points and focus on fighting warfare, and should not make mistakes in paving the way for large-scale development and blind development. This kind of positioning of seeking truth from facts for the enterprise will instead exert its overall advantages in the entire industry and accelerate the pace of modernization.
