Hardware industry stalled, industrial competition "to win by quantity"

The data provided by the association shows that in the global hardware industry under the influence of the international financial crisis last year, China’s hardware industry took the lead to recover, and the entire industry showed a recovery growth. The data collected by the association from the Customs show that in 2010 the total import and export volume of the industry reached 74.9 billion US dollars, an increase of 30.1% over the same period last year. Among them, total exports reached US$57.51 billion, an increase of 31.4% year-on-year. Recently, the China National Hardware Association held a conference for the 11th China International Hardware Show (CIHS). The chairman of the association, Zhang Dongli, said that the impact of the financial crisis on the industry that has always been called “hardware” continues to ferment. The differentiation has become increasingly apparent.

Shi Xiaolan said that the industry's warming can be seen from the forthcoming 11th China International Hardware Show in September. The China International Hardware Show is already the world's second largest trade show, and the 11th show will be the largest ever. For a long time, the impression given by the hardware industry has always been the impression of “hardware”. The industry is not only labor-intensive but also has low entry barriers and low technology content. As a result, the characteristics of the industry formed are low product surpluses, and the industry competition is often “winning by quantity”. Domestic macroeconomic policies have always affected the development of the industry. Since the introduction of related policies such as real estate regulation, hardware companies have encountered many restrictions in their development.

Under this background, during the "Twelfth Five-Year Plan" period, the hardware industry actively brewed five major changes. Shi Lanlan said that the five major changes in the industry pushed by the association are extensive to intensive, labor-intensive to technology-intensive, quantitative expansion to qualitative expansion, low cost, low prices, high added value, and high profits. Change, export-oriented to independent brands. For the first time, the exhibition launched a boutique area of ​​about 300 square meters, aiming to guide the industry's innovation and development, and prevent the emergence of stereotyped faces in the industry.

Zhang Dongli said that at present, the impact is mainly due to the weakening of rigid demand caused by the reduction in the consumption of self-occupied commercial housing, and the increase in overall costs brought about by the increase in labor costs. According to its introduction, the average labor cost in the hardware industry has risen by about 15%. The polarization of the hardware industry is already quite obvious. Zhang Dongli said that the results of the survey conducted by the Association in the past quarter have found that large enterprises and brand enterprises live in a moist environment and orders cannot be completed. However, SMEs have seen many closures around this year. However, Zhang Dongli said that although some small and medium-sized enterprises are closed, the wave of mergers and acquisitions in the hardware industry has not yet emerged. Some large listed companies may have some merger and acquisition plans in operation.