Decoding the Road to the Rise of Daxin Town

The production of hardware tools has a history of half a century in Daxin Town. Since the reform and opening up, the town's hardware industry has risen rapidly, forming a group of key enterprises represented by Jiangsu Hongbao Group. Since 1986, medical equipment and other hardware products have been sold overseas in large quantities and have been honored as national and provincial quality products and advanced villages and towns for export earnings. In 1993, Hongbao Group and other enterprises successively transported more than 100 technical backbones and 126 sets of hardware production equipment to villages, helping 17 villages to manage 43 hardware and knife-cutting production enterprises. The year's sales of hardware products in the town exceeded 3%. 100 million yuan.

In 1996, China National Hardware Association formally named Daxin Town as "China's Hardware Town". The town's hardware production has entered a new stage of development. By the end of 2007, there were more than 400 hardware manufacturing enterprises in the town, with a registered capital of 200 million yuan, including 6 foreign-funded enterprises, and 1 enterprise with annual sales exceeding 100 million yuan. , Over 50 million yuan for one, over 17 million yuan for 17; In the hardware production of more than 10,000 employees, has formed a hardware tool, medical equipment, light industry knife and scissors, garden tools, kitchen appliances, five categories of products The main product structure, including: more than 160 companies engaged in the manufacture of hardware tools, has formed more than 130 product lines, more than 3,000 varieties, annual sales of more than 180 million, annual sales of 2 billion, accounting for the town of industry 46% of sales. Products sell well in Europe and the United States, the Middle East, South Africa, Australia, Southeast Asia, more than 70 countries and regions, have a reputation abroad, self-exports of up to 38.1 million US dollars.

Looking back at the development history of the hardware industry of Daxin Town this year, we will start with the following aspects in order to strengthen and improve the hardware industry.

First, policy support, leading to lead the development of the hardware industry

After 1996, the collective hardware manufacturing enterprises in Daxin Town implemented a complete system of transformation, and successively established a management mechanism with clear property rights and scientific management, which fully mobilized the enthusiasm of production and sales. After the transformation of Jiangsu Hongbao Group, the original three hardware tools branch was built into Hongbao Group Hardware Co., Ltd., which has 3 subsidiary companies and is established with the world's top hardware products distributors and manufacturers. With business cooperation, the output expanded rapidly and became the first listed company in Daxin Town.

In 2000, the Group's sales revenue was 778 million yuan, and profits and taxes were 61.46 million yuan, an increase of 265% and 239%, respectively, from 1996 before the conversion. In 2007, it achieved a sales income of 903.01 million yuan and a profit tax of 76.98 million yuan, an increase of 316% and 299% respectively over 1996, becoming the largest production base for domestic clamp products, ranking first among the top ten in the national hardware industry. Since the mid-1990s, Zhangjiagang City and the town government have created a good external environment for the development of hardware and private enterprises in Daxin Town. Metal manufacturing companies have mushroomed rapidly and are growing at an annual rate of 20-30. The speed of home has increased, and hardware companies have grown from a few dozen in 1999 to a few hundred now, and sales have more than doubled in 1999.

Jiangsu Hongbao Group Co., Ltd., Zhangjiagang Tianda Special Tool Co., Ltd. and a number of leading-edge hardware companies on the scale, laid a solid foundation for the development of the new hardware industry. "Hongbao" trademark has been judicially recognized as China's well-known trademark, and "Xingong" brand products enjoy a high reputation both at home and abroad. The rapid development of the hardware industry has also led to the development of a number of related supporting industries. The hardware production of our town has formed a one-stop production of raw materials from the factory to the packaging and export, and has become an important base for hand tool production in the country. Jiangsu Hongbao Group Hardware Co., Ltd. is the largest hand tool manufacturer in the country with an annual output of hardware tools, Cutlery knife, beauty knife bag, knife and scissors 18 million, annual sales of 200 million yuan; Zhangjiagang Tianda Special Tool Co., Ltd. is the country's largest bolt cutter pliers, Rama production base, annual output of 6.5 million, annual sales 188 million yuan.

Second, set up a chamber of commerce to innovate technology and actively explore new ways for the development of the industry

The rapid rise of the town hardware industry within a short period of time has played a positive role in promoting the development of the hardware industry in the town. However, we are also soberly aware that some companies have encountered some difficulties in their own development during the development process. Problems, such as outdated production equipment, backward technology, resulting in non-standard production and operation, and inability to guarantee product quality, etc., in order to further deepen reforms, change government functions, and standardize management of the hardware industry, Daxin Hardware was established in October 2000. Chambers of Commerce and colleagues were accepted as members of the China Hardware Association. Over the years, the Township Hardware Association has actively assumed the role of managing the hardware industry in the town, and has carried out a series of active and effective work in accordance with the purpose of serving the company.

In January 2007, the Chamber of Commerce held a general election and set up a new council of the Chamber of Commerce to complete the transformation of the government-run business association into a business association. One is to hold regular economic operation analysis meetings. In 2007, the Chamber of Commerce and Town Economic Service Center organized an economic operation analysis meeting every quarter. Through the economic operation analysis meeting, the member companies can understand the current situation of the economic development of the town in a timely manner, and summarize and analyze the operation of the enterprise in stages. Members provide opportunities for mutual exchange of their respective operating conditions, management experience, investment development ideas, help solve the difficulties and conflicts encountered in the development of enterprises, complement each other, promote each other, and make the company's development continue to grow on a healthy track. Stronger. The Chamber of Commerce targeted the status quo of the town's hardware products industry in obsolete equipment, backward technology, weak innovation capacity, and lack of market competitiveness. The company organizes business owners to visit and study at home and abroad, which enables business owners to broaden their horizons and expand their product markets. After the establishment of the chamber of commerce, every year members of the town must be organized to attend hardware exhibitions and fairs held at all levels, at least 10 booths at a time. Organize companies to participate in the China International Hardware Fair which is held annually in Shanghai by the China Hardware Products Association. Through participation in trade fairs and expositions, the hardware products of our town enjoy a certain reputation at home and abroad, which enhances the market competitiveness of the products. Third, it organizes enterprises to carry out technical exchanges and economic cooperation with counterparts at home and abroad. Since the establishment of the chamber of commerce, the company has organized major key hardware products companies in the town to visit Shanghai, Wenzhou, Zhejiang, Guangdong, Foshan, Jiangyin and other places to learn from their peers and learn advanced experience. In November 2003, we formed a friendly chamber of commerce with the Wenzhou Hardware Chamber of Commerce and strengthened the good communication between the **. At the same time, the Chamber of Commerce also accessed information through the Internet, and contacted the Taiwan Handicraft Tool Industry Association. In the name of the chamber of commerce, it organized more than 30 trips to Taiwan to conduct market research visits, attract investment, introduce economic partners, and achieved gratifying results. Taiwan-funded enterprises settled in our town; Fourth, they organized various training activities. In order to constantly update and improve the knowledge and business capabilities of member companies, the Chamber of Commerce adopts a method of requesting entry and going out, often organizing training for member companies, organizing special lectures, etc., and conducting multi-level and multi-formal training from time to time. Activities, and constantly improve the industry management level.

Fifth, guide enterprises to enhance their technological innovation capabilities. The Chamber of Commerce targeted the current situation in the town's hardware products industry with obsolete equipment, backward technology, weak innovation capacity, and lack of market competitiveness, and organized business owners to visit and study at home and abroad. This not only enabled the business owner to broaden his horizons and expand the product market. , And compared to one year, the body of the town of hardware equipment has greatly improved the equipment, the introduction of Taiwan's high-speed punching line, forging production line, Russia's hot forging production line, computer marking machine, mold processing center, etc. The cash production equipment and colleagues' production processes have also been greatly improved. The use of cash CAD software for product design has greatly improved the product quality and technical content. Many merchants praised Daxin Town's handicraft production as being close to Taiwan's level. Some companies even surpassed Taiwanese companies. Sixth, timely propaganda work for member companies. In 2007, the town chamber of commerce funded the promotion of member companies in the Zhangjiagang Businessmen’s magazine. Over the past year, Hongbao’s stainless steel pipe factory, printing machine factory, worsted factory, fashion factory, Hongbao property, Xinkai stainless steel products, Xinfang Group and other enterprises have conducted propaganda and reporting in the “Zhangjiagang Merchant” magazine, which has, to some extent, increased the visibility of the company.

Third, build carriers, attract investment, and strive to provide a development platform for the hardware industry

At the beginning of the development of the hardware industry, the hardware production enterprises in the town were scattered all over the country. Some of them even set up factories behind the houses in front of the house. This not only has an impact on the environment, but it is also not conducive to the development of the company. The town party committee and government clearly saw this. At the end of 2000, Daxin Hardware Industrial Zone was opened to allow hardware companies to have a better space for development. This industrial park covers an area of ​​6,000 mu and has been developed and built over the years. More than 50 million yuan has been invested in the construction of basic equipment. The number of enterprises entering the district reached 112, of which: hardware companies accounted for more than 70% and foreign-funded enterprises 4. My town’s right to rely on the hardware industry area to take a carrier, with the hardware industry as the main body to increase investment. On the one hand, we built our own hardware investment promotion network, and then we launched online investment promotion. On the other hand, we took the initiative to attack the investment. With preferential policies and good services, we will attract more merchants to invest and start businesses in our town. This year, our town has attracted hardware companies from Taiwan, Thailand, South Korea, the United States, Malaysia and Germany to invest in our town. Their advanced production equipment, advanced production technology and advanced management experience will all improve. I have a huge driving force in the hardware industry.

Although the town's hardware industry started early, it has developed late. Compared with Japan, Taiwan, Wenzhou, and other advanced countries and regions, there is still a certain gap. First, the product quality is low and the variety is single. The vast majority of hardware companies in the town produce middle- and low-end hand-tool products; second, they lack the upper-scale and upper-grade enterprises. Among the more than 180 hardware manufacturing enterprises in the town, only one company sells more than 50 million yuan, and only 17 enterprises surpass 10 million yuan. The proportion of large scale enterprises is still small; It needs further improvement. At present, enterprises are generally adopting the “acquisitionism” phenomenon in product development. The ability to really own their own products is still relatively poor, and customers are producing more samples. How to make the hardware industry a good job in this article and make the US a long way to go. After China's accession to the WTO, the globalization of the world economy is becoming more and more obvious. The competition in the hardware industry is also becoming increasingly fierce. We feel that building a corporate brand with science and technology and challenging the market with quality products are particularly important. The next step is to:

1. Further accelerate the establishment of the hardware industry system, strive to play the role of the Chamber of Commerce, strengthen the self-discipline and coordination role of the industry, and provide enterprises with the necessary technical support, personnel training, information consulting and other services.

2. Strengthen technological innovation and create a market with brand. This is the basis for the development of the hardware industry. First, it is necessary to improve the technical level of the employees of enterprises, and to cultivate a number of scientific and technological talents who understand technology and management to improve the overall quality of the enterprise. Second, to introduce advanced production equipment, some key equipment must be improved as soon as possible. The degree of automation, to high-precision, high-efficiency, high-grade development direction for the hardware industry to provide strong driving force; once again to accelerate the application of information technology in the field of hardware, in the enterprise actively promote the application of CAD, CAM, CAPP, through the product Data management to improve the standardization, openness, and integration of manufacturing. Through technological innovation, we constantly improve the technical content and grade of our products, and strive to nurture brands that have a certain influence in industries such as "Hongbao" brand and "Xingong" brand, and open up the international market with our own brand.

3. Intensify investment promotion and form a new pattern of diversified development. We seize the characteristic industry of hardware, increase investment promotion efforts, and introduce some large domestic and foreign enterprises to invest and set up factories in our town, so that their advanced technology, advanced equipment and advanced management can drive the development of hardware enterprises in the town to a higher level. In the same way, it also made my town's hardware more colorful.