Hardware accessories: how to make home business to be a hardcore follower



There are many kinds of hardware accessories, which play a key role in connecting, decorating, expanding functions and extending life in cabinets, wardrobes, doors and windows, bathroom and other household products. Although the role of hardware accessories is so important, in the Chinese decorative industry, the total number of hardware accessories companies with more than 10,000 are SMEs. These companies often rely on price wars and sales to win, and brands only account for a small percentage, and the importance of brands is hard to come by. The reason is thought-provoking.

Low-end hardware, thin day, Xishan

The hardware accessories industry belongs to the end of the industrial chain and is in a market disadvantage position. It is also dominated. The pricing ability of the upstream metal materials industry is getting stronger and stronger, and the hardware accessories have no bargaining power for the upstream; and because the hardware accessories do not directly face the end consumers, there is no market pricing power, and there is no cost transfer capability for the downstream. As a result, the hardware accessories are at the lowest end of the profit curve, and only a small profit in the entire industrial chain is obtained. Therefore, hardware accessories companies rarely make brands. In order to survive, it is not as good as the price war.

In the 30 years of development, China's hardware accessories industry is still in the development stage, the market consumption potential has yet to be tapped, and the market demand for medium and low-end hardware accessories is large.

China's hardware accessories companies are basically labor-intensive processing enterprises. The products are low in technical content and low in added value. Most of them are only used in low-end and low-end household products, or exported to less developed countries and regions such as Asia, Africa and Latin America. High-end household products are generally imported or domestic hardware manufacturers, but the number is limited, it is difficult to achieve climate.

China's property rights protection law is not perfect, and the intensity is not enough, making hardware accessories companies seldom willing to spend money and spend energy to develop new products. Because a lot of new products developed by manpower and material resources, as soon as they are on the market, they will soon be copied by their peers, and even the design costs will not be earned. Even if you obtain a patent for a design or utility model, it is easy to be imitated by your peers. It is difficult to calculate the time and effort spent on lawsuits, and it is often the case that the lawsuit has lost the market.

Many factors have led to a large number of low-end hardware accessories companies in China, producing a large number of quality and cheap products. The vicious competition between peers has led to a drop in profits, and many products have no 5% profit.

In the export market, due to the mutual price hikes between the peers, the quotations are all very low, and the Chinese hardware products are cheap and good, but it is a pity that China's limited non-renewable resources are sold cheaply.

A few years ago, the author talked about this problem in Zhongshan and a boss who made hardware locks. The boss said with sorrow that he had done hardware locks for more than 20 years, and the factory that worked so hard was about to close. Ask him why? He said "the blessings of the blessings." He signed a number of large export orders at the Canton Fair, but due to fierce competition from peers, prices were set low and profits were low. It coincided with the soaring prices of raw materials such as copper, zinc alloy and stainless steel, which caused his factory to lose 80,000 yuan for every container exported.

He is difficult to support and has to consider closing the door. We hope to standardize the operation of the hardware market, increase the construction of independent brands, and make the hardware accessories enterprises more rational. Because resources are limited and non-renewable, it is our responsibility to know that the "fisherman's benefit" will be victimized.

Foreign high-end hardware is favored

At present, the supply of low-end products in China's hardware accessories market exceeds demand, but the high-end products have huge market capacity. China is currently the largest and most promising market, and China's affluent class is growing. On April 12, Hurun Report published the “2011 Hurun Wealth Report” in Shanghai. According to the report, as of the end of 2010, the number of millionaires in the mainland has reached 960,000, an increase of 9.7% year-on-year; including 60,000 assets. The billionaires have grown by 9.1% year-on-year. The ranks of the rich are growing and they are full of confidence in the development of the Chinese economy.

For this reason, foreign hardware accessories companies, such as the famous such as Austria Blum, Germany Hettich, Häfele, Gneeng, etc., have entered the Chinese market in the past decade. Austria’s Blum’s sales in China exceeded 1 billion euros last year. On March 27th, Turkey Samet officially announced its entry into the Chinese market at the 2011 China Guangzhou International Woodworking Machinery and Furniture Ingredients Exhibition. Now there is such a phenomenon, as long as it is the production and operation of high-end home products, it must be declared that the use of imported high-end hardware accessories such as Blum or Hettich, "speaks must be called Greece." It seems that only the use of these imported high-end hardware accessories is considered a high-end product, consumers only buy, the product can sell high prices.

This phenomenon shows that these imported hardware accessories have made high-end home furnishing companies become their hardcore followers. The development of China's hardware industry must follow the trend of the market to become international, and continue to promote the development of enterprises with new marketing models, and strive to create international products.

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