Hardware Industry Development Prospects And Development Trend Analysis

      In the global competitive environment, in order
  First, in 2008 constant prices of raw materials,to obtain a favorable competitive position and
resulting in high-priced hardware to run the industrialenhance competitiveness, industrial capital, the
market in the domestic market, hardware, bathroomindustry is running another theme. 2004 Supor,
hardware prices following the class in the fourthVantage has listed Hongbao also active efforts for
quarter of 2007, after a wave of rising, was early inthe listing, 10000, and the capital markets will not
March 2008 rose slightly again. In 2007, theresult in failure of reorganization with the Guangdong
international price of copper rose 66%; LondonMeiya stop. From the capital perspective, the main
copper futures prices from the start the first roundfeatures of the current expansion of capital on the
of 1800 U.S. dollars / ton up to 7300 U.S. dollars / ton,rise. Competitive behavior from the point of view,
is up more than 300%; production of stainless steelinter-enterprise cooperation in the sharing of
required for nickel and other metal sharp rise in pricesresources is increasing.
of materials; in May 2008 began, ceramics enterprises    3, enterprises will further exacerbate
have price increases, artifacts average growth ofpolarization
8.6%, in part arise out of stock; Baosteel and the    The next few years will be the hardware
world's major iron ore producers Rio Tinto, one ofindustry, high-speed shock period, the direct impact
Australia's the annual iron ore benchmark prices onof high-speed shocks consequence of this is the
the 2008 agreement, Rio Tinto PB powder ore, Yangcurrent hardware kitchen brands to expand the trend
Di powder ore, PB lump ore will be the basis of 2007of polarization of the camp. The next few years is
prices rose 79.88 percent, respectively, 79.88% andexpected to actually be able to survive in the
96.5%, this result would no doubt bring pushed themarket, there is no hardware business is now so
domestic iron and steel enterprises life and death ... ...much. But the hardware industry, this high-speed
these figures can be described as horrifying,shocks will have a tremendous opportunity to shock
hardware industry, the growing prices of rawthe result will be to make more rational operation of
materials, hardware products, high-priced running isthe market.
not surprising.    4, sales channels, increasingly fierce competition
    For many years China, as the world's largestbetween
steel producer and the world's most populous    An oversupply of domestic hardware kitchen
country, has been manufacturing tools for hardwareand bath products, quality, pressure, sales channels to
has a raw material and labor cost advantages, inbecome one of the key competitive factors, the
recent years has maintained a steady growth ofparties to the channel is becoming increasingly fierce
export trends, which China has become the world'scompetition. On the one hand, kitchen electrical
Tools Metal products, one of the major exportingmanufacturers strengthened the control on the retail
countries. But with the national macro-policyend, try to reduce sales cycles, saving cost of sales,
adjustment, since the main raw material prices ofso that the direction of sales channels to professional
steel products last year, a significant increase in thedevelopment, enterprise sales model can
state to reduce export tax rebate rate, as well assimultaneously meet the diverse toward the direction
by the international environmental impact of theof the market. On the other hand, sales of the
appreciating Chinese currency, coupled with the 2008industry trend towards the development of the
"Labor Contract Law" was implemented to bring thestatus of a large home appliance chain stores
labor costs have increased, making domesticcontinue to rise, the control of the industry enhance
manufacturing environment for the gradualits ability to participate and were mainly caused by a
deterioration of the labor-intensive metal industry aremanufacturer-led price competition. Large retailers
particularly notable. At present the developmentwith its broad market coverage, purchase the size
trend of the domestic hardware industry is notand cost advantages, product pricing, payment
optimistic, and even can be said to be fairly severe.delivery in terms of ability to control manufacturing
  In 2006, China's market size of metal productsenterprises will be growing.
industry reached 812.352 billion yuan, of which    5, market competition will shift to high-quality,
structural metal products accounted for 29% ofhigh-tech products
market share, slightly higher than the number of    As competition in-depth, hardware, the various
enterprises accounted for, enamel metal productsstages of the industrial chain profit margins were
manufacturing industry as a whole accounts for onlycompressed, downward movement is decreasing.
1.09%.More and more companies recognize that price
    Fourth, the internationalization of domesticcompetition alone can not build up core
competition will be the next few years, thecompetitiveness, not the long-term direction of
development trend of China's hardware industrydevelopment, in an effort to explore a new path of
    1, China as a global hub for hardwaredevelopment. Many hardware companies increased
manufacturing will be further solidtechnical input to develop new and high-tech
    With China's integration into the globalproducts, product differentiation as a long-term plan
economic environment to speed up the process, asthe development of enterprises to seek new market
well as the rapid rise of economic power, China hasdemand, the establishment of new economic growth
become the world's most dynamic economic regions.points (such as small household appliances and access
China's economy relatively complete infrastructure,to other similar industries), in order to achieve
industrial development and labor costs are lower andsustainable development of enterprises.
more mature, has become the world's manufacturing    6, the integration of domestic and foreign
center of the comparative advantages of hardware,enterprises will further accelerate the
hardware manufacturing export-oriented    Domestic hardware companies in order to
development features clearly.improve their strength and expand faster in the
    Center to enhance the performance of theinternational market, through various means to
first hardware products in recent years, overallaccelerate the integration and foreign enterprises to
growth in exports: The main hardware products,improve product quality, enhance competitiveness.
export growth is higher than output growth, higherContinue to expand in the United States, Japan and
sales growth in the domestic market; the mainother traditional markets, while countries in Southeast
hardware appliances full bloom, not only power tools,Asia, the Middle East, Russia, Europe and Africa, will
hand tools, architectural hardware products of theseprovide full bloom.
traditional categories of export products increased    Overall, China's hardware industry will continue
very high, and before the export share of smallthe momentum of structural adjustment, but will
kitchen and bath products and electrical productscontinue to be some bright spots. Hardware
export growth in 2004 is also very obvious. A hugecompanies polarized situation will only get worse,
market and center of gravity will further attractsome companies will not meet market competition
multinational hardware manufacturing center to Chinaout of competition in the market through different
transfers.channels, while the hardware giant will gradually
    2, inter-firm co-operation will significantlyemerge.
strengthen the