China's Hardware Tools Industry Explores New Way Out
In recent years, China's hardware tools 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.
In the future development, hardware tools industry needs to explore new ways, such as creating a rural market, will be regarded as a clear choice of industry direction. It is a big trend for hardware tools to develop the township market with great potential, and it is also a fertile ground for brand cultivation. However, the timing and challenges coexist:
First of all, the industry leader is not strong enough to lead. There is no obvious advantage in the technology and industry overall competitiveness of the hardware tool industry in the domestic market.
Secondly, the technological innovation capability is weak, and there are only one and three technology (research and development) centers in Hangzhou and Jiande in hardware tools industry respectively;
Third, the market structure is too single. The main business of hardware tools comes from foreign trade orders, and the degree of dependence on exports is too high. Under the influence of the economic crisis triggered by the international financial crisis, the export market of these enterprises has shrunk dramatically, which has constituted a serious problem for survival and development.
Fourth, brand building is lagging behind. Most of the hardware tools companies rely on OEM production, lack of visibility and core competitiveness.
Fifth, there is a lack of public platform services. Although Jiande Hardware Tools Industry Association was established in May 2009, industry self-regulation is still difficult and the industry associations still have a central role to play.
The development of China's hardware tool industry from the last century to today, its marketing characteristics have roughly experienced four distinct phases, namely product marketing, standard marketing, service marketing, and brand marketing.
These four marketing strategies are both independent and mutually compatible. The production and development of each model has its own detailed economic environment.
Product marketing: Product marketing is the initial mode of marketing, which is based on the production of the company. It is not on the consumer's point of view to design, research, develop, and manufacture products. The philosophy followed is “what to produce, what to sell”. This model mainly arises from the period of planned economy and the period of supply of less than demand in the initial period of the market economy.
Standard Marketing: The so-called standard marketing refers to the use of companies in the industry to participate in the role of national standard setters, the use of this resource as a public letter, stop the spread. Standard marketing is not a true marketing model, but a marketing tactic that only a few companies can use.
Service Marketing: The so-called service marketing refers to the customer's service as the marketing focus, based on the product to carry out a full range of services, access to consumer trust and rely on. After experiencing the era of product marketing, China's hardware tool industry has gradually overcapacity, supply and demand conditions of oversupply have begun to appear, coupled with the impact of large foreign companies, the industry began to think different from product marketing service marketing. As a hardware tool for industrial products, especially professional tools, the requirements for consulting, training, maintenance, etc., during the sales process are relatively high. Therefore, purchasers purchase more than just products, which is largely a product life. The cycle of process services, so many companies started the service marketing model.
Brand marketing: The so-called brand marketing refers to the enterprise's brand needs through the use of consumer demand to create brand value, and ultimately the formation of brand-effective marketing strategies and processes, through marketing and use of various marketing strategies to target customers to form the company's brand and products, services The cognitive process. China's hardware tool industry has officially entered the era of brand marketing. Almost all large-scale enterprises have begun brand marketing. The essence of brand marketing is to seek differentiated positioning of the brand, get rid of the value of the product marketing, upgrade to a high level of brand value marketing, the brand's added value into a customer's trust and profit growth point.
Only companies will develop hardware tools to the countryside to become a strategy, not to overcome crisis expedients, and to make changes in the organizational structure of enterprises, invest resources to research, formulate new operating models, cultivate economics, and organize strengths to implement them. Can we seize the opportunity and become successful.
WPC Solar Shading, WPC Sun Shade, Outdoor Solar Shades
Shangyu YongSheng New Material Co., Ltd. , http://www.wpc-deckingboard.com
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