Analysis of the five major changes in the direction and development focus of the hardware industry

The main directions and priorities of the hardware industry planning and promotion during the “12th Five-Year Plan” period include five major changes:

The first is the transition from extensive to intensive. Change the status quo of small, multiple, weak, and scattered industries, improve product processing capacity, upgrade manufacturing equipment and technology, create brands, and take an intensive development path. In the past 15 years of development, the hardware industry has taken a broad path of development. High-pollution, low-level, repetitive labor, low-end product surpluses, and high-end product shortages have always existed, which has not only caused a waste of resources. The destruction of the environment has also constrained its own development. Today, this growth model has come to an end. The core of the shift from extensive to intensive is to improve product processing capability and quality, and take the road of independent innovation and independent brand development. Raising the quality, independent innovation ability, and creating own brand and channel have become imperative. The shift from extensive to intensive is imminent.

The second is the shift from labor-intensive to technology-intensive. Labor-intensive industries can also introduce modern electronics and IT technologies into the industry. The Faucet Industrial Design Contest announced at the "2010 China International Hardware Show" was a demonstration and guidance for the entire industry by the Hardware Association starting with industrial design to increase product technology content and added value. There are many kinds of hardware industry, each with its own characteristics, and take a technology-intensive approach, which has a lot of room for growth.

The third is the transformation of quantitative expansion into qualitative improvement. At present, the homogeneity of products and the low level of repetitive labor in the industry have not yet been improved. To achieve the transition from a large producing country to a strong manufacturing country, we must overcome the current status of too many low-end products and high-end products. In 2010, the import value of construction hardware was US$4.99 billion, an increase of nearly 30% year-on-year. It can be seen that the market equivalent to more than 300 billion yuan has been occupied by foreign brands.

The fourth is the transition from low cost, low prices to high added value and high profit margins. At present, the architectural hardware industry still has the current situation of low-price competition among peers and disrupts the industry. This kind of competition is completely a kind of harm to the industry, and the final result can only be lost. The positive example is the hood industry. There has been no price war until now.

The architectural hardware industry must increase the connotation of its own brand, create and promote sales channels, and must make greater efforts in brand promotion and market hardware. At present, the domestic market is very mature, and the quality and taste of consumers have also been improved. Therefore, taking root in the domestic market, especially the high-end market, we can grasp the initiative and not be afraid of the impact of the international market crisis. At present, production costs, living costs, and social costs are all increasing, and product prices are also under great pressure. How to adjust requires careful planning by enterprises.

The fifth is based on the export of OEM mainly to their own brands. Paying attention to the domestic market is not abandoning the international market. Walking on two legs means that the domestic and foreign markets are both concurrent and parallel. However, as a key enterprise in the industry, a company that wants to be a hundred-year-old shop can stop OEMs. OEMs always take orders, production, and delivery. They know nothing about the domestic market, standards, and trends. This industry model completely dependent on each other is actually very dangerous and passive. Once customers change, Businesses are very likely to fall into crisis. Therefore, if you want to continue to improve products, companies, and long-term development, you must grasp the initiative of the brand and embark on a solid road to independent brands.

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