Comprehensive Interpretation of the status quo of China's hardware industry this year

China's hardware industry after 20 years of effort, has become a veritable hardware power in recent years, several major hardware market is the development of industry market which best market. Currently the industry's largest hardware market is mainly concentrated in a few mechanical hardware, construction hardware, decorative hardware, hardware and other chunks.

First, the status of Chinese hardware companies

A few years ago, China's hardware industry overall grade is not too high, more small and medium enterprises, start low for a number of small workshops; relatively large changes in recent years to improve the quality of personnel in one, such as the current Beijing will build the country's largest Hardware market, "China Hardware City," the person in charge, are Ph.D., postdoctoral person; the second is to improve the technology and management level, like the Great Wall Seiko factory, in the process, the management already has a very high level.

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From traditional hardware, this one is a tool, such as hand tools, hydraulic tools, power tools developed rapidly. Second, architectural hardware, decorative hardware side, the replacement rate is faster.

Metal parts market in great demand. Handan, a small processing plant, the production process is very backward, its sales force across the country reached more than 10 million.

China's hardware industry after ten years of accumulation and steady improvement, is now the world's largest output of the country, steady growth in exports annually. Among them, the export value is the largest tool products, amounted to $ 5.34 billion; followed by construction hardware for $ 4.34 billion. Faucet export $ 2.23 billion, exports of $ 680 million locks. Country exports most of the United States, Japan, Europe, South Korea. China's annual exports of metal industry at a rate of around 8% growth. Last year, metal products exports exceeded $ 5 billion, ranking third in the light industry exports ranking. Due to increased expansion of China's hardware manufacturing level and production capacity, it is expected over the next five years, China's hardware products will remain over 10% per year steady growth. Hardware import and export of electromechanical products the first 10 months of more than 500 billion US dollars. Surplus has widened further, totaled $ 7.06 billion, accounting for 64 percent of China's trade surplus.

Changes in the international metal market provides a good opportunity for China's exports of metal products. China, Taiwan and parts of Asia, Hong Kong production of metal products in the world, second only to developed countries.

Second, the gap between China and the international market, domestic hardware market

With WTO accession, China's hardware industry in the world has achieved an important position in the world, China's hardware has a place and is in line with global leading hardware, many world-renowned enterprises have entered the hardware to the Chinese market. We will work with them long-term coexistence, which for Chinese enterprises is undoubtedly formed the absolute challenge and pressure. Currently, the domestic market, compared with the international market, mainly in the following 10 big gap:

1 scale. US hardware tools market is $ 40 billion market capacity. U.S. Schneider Squibb Company, is one of S & P500 companies. Products include hand and power tools, automotive diagnostic and repair equipment, diagnostic technologies and related products, widely used in automotive, aerospace and other commercial areas.

2, strategic planning. The company's world-class products, often giving a very clear impression. Many of our hardware business diversification strategy, while there is excessive competition, many domestic manufacturers and brands prominent main business, core competencies difference. Therefore, the production enterprises to professional, to become a category leader. Chinese enterprises are smaller, we should not rush to do everything, but to be a first class product to do the best.

3 brand. China has entered the foreign hardware companies in the international community are renowned multinational companies, they have a good reputation, to provide users with high-quality products, perfect service. The Chinese business language, a higher degree familiar with the market, the demand for culture is relatively understanding, and therefore more likely to build their own brand.

4 technology. Currently, multinational enterprise hardware design capabilities and levels and processing methods are higher than us, they have advanced design reserves, and we both lack of funds and lack of technology.

5, sales management. Right now, the Chinese hardware management model has not yet embarked on the road of real agents, management experience, management tools, management personnel are challenged; market management, price management, promotion management in a middle or upper level.

6 channels. Chinese market itself growing demand, many foreign companies to China to produce, they are more stress is placed on the Chinese market. Most Chinese hardware manufacturers to the domestic market. But the domestic market is changing among the traditional big business by the Federation of Trade Association, Union systems and electrical systems are not cross the Commonwealth of economic relations, waste of resources, the high cost of corporate marketing. Chinese metal exports accounted for only a few percent of the total, the expansion of overseas market is only beginning to go out, the lack of cross-border trade elite talent and experience.

7, scientific decision-making mechanism. Many people think that foreigners do not understand the Chinese market, in fact, foreign manufacturers will use very high-paying Cheng invited Chinese native talent, willing to pay for information, the establishment of effective decision-making pipeline information channel and rapid response, and Chinese hardware the response of the market, tend to lag behind, we often lack the time of the decision as well as delays in the decision opportunities.

8 service. Hardware manufacturers to foreign laws of the country as the yardstick, never engage in commitments competition, service is very standard, not only do not stick the money, but also profitability, promote their service standards to improve the use of economic instruments.

9 mechanism. Multinational companies have established a modern enterprise system, property rights, and operational. Our traditional hardware manufacturers, even if listed, but also there may be a vicious circle, that is, regulate the operation of enterprises, but also more or less retains traces of stigma and traditional management mechanisms under, as are the womb from the traditional mechanisms . Such mechanisms and traces of restricting the competitive play.

10 funds. At present, China hardware manufacturers is difficult to raise funds, even able to raise funds, the scale is very limited. Some even debt management, in order to close to the market, but also the lack of transformation capacity, the products are on the same level. Therefore, business development difficulties, often forced into a price war.

Experts predict: By 2020, China's industrial added value accounted for the proportion of the world's industrial added value from 5.72% in 2000 to grow to more than 10%; the proportion of the world's manufactured exports of manufactured exports, from 5.22 in 2000 per cent to more than 10%. By that time, China also has a number of powerful hardware manufacturing group, formed a number of distinctive, internationally well-known hardware manufacturers to focus on.

Third, actively explore the international trade routes hardware industry

With China's accession to WTO, the domestic hardware companies began to gradually shift domestic trade foreign trade or even give specialize in the international market, international market development is imminent. Hardware companies how to adapt to international trade cooperation, especially small and medium enterprises to face the complicated international form of international market development is particularly important on the obvious.

(A) First, the business personal ideology has also been an unprecedented challenge:

1, and constantly adapt to market changes. Regardless of the initial bumps in the business period, or in the period of booming business development, or after a period of intense competition accept the transformation of e-commerce, to stay in the spirit of optimism and the ability to accept new things.

2, cost-conscious. Alibaba generalists 2300, two months to earn a hundred thousand, not only to recover the cost but also earn a lot. With the increasingly fierce market competition, the use of e-commerce to reduce costs, is victory means many businesses can take.

3, learn from your mistakes. Each person entering the field of electronic commerce, more or less a detour. Raise awareness of fraud prevention, safer doing business online is a very important aspect.

4, open the door to foreign trade. E-commerce biggest feature is fairness. No matter how big or small businesses, as long as the quality of products to meet the requirements, the test of good faith by, can participate in the market competition. Others not because of distance, size specifications and thousand li away. With the deepening of globalization, even the Chinese can become an international language. Enterprises should continue to strengthen the expertise of foreign workers, including knowledge of the language and the business to continue to expand your knowledge and competitiveness.

5, personal development and the development of the company closely. Personal enterprise development, improve the quality of all the company's development are closely linked.

(Ii) e-commerce enterprises to participate in international trade

In 2005, the enterprise through the network how to do e-commerce international trade has become an inevitable trend of the times: First, through a variety of channels for foreign customers know you; the other is to allow foreign customers to trust you. This takes time, but more standardized quality management, international market requires experience and talent.

1, e-commerce companies to participate. Status as middlemen involved in the business of international trade to help them solve a variety of difficult to communicate with buyers directly made on commission business, then this e-commerce industry and the business itself is a leap. Meishang Wang before the emergence of China and Alibaba, the world does not do e-commerce site international trade. Do portal can copy yahoo! But do international trade, specializing in international B2B trade between developing and developed countries, and this model as Mexico, Vietnam, Philippines, Indonesia, the US trade partner countries can be used. In China do import and export with a B-B, the biggest advantage is to expand business opportunities, and associated cost savings. The original US companies to buy Chinese products through intermediaries, through the Internet can now direct inquiries to the relevant Chinese companies, and are likely to find new demand; Chinese enterprises as the seller may also find new buyers directly through the Internet, expanding business opportunities , substantial growth in international trade. On China's reality, the majority of SMEs have used middlemen involved in the trade, transport, foreign exchange swap and other intermediaries unfamiliar. If the foreign buyer is a small business, then you need to do this part of the intermediary to assist in the intermediate business. Some companies do not understand English, you need to bargain helped them to do all kinds of import and export procedures. If these companies own the Customs, looking for transportation companies, insurance companies, it is difficult.

2, government support. Further expand business horizons, broadening hardware products in the international market sales, strengthen the functions of government services, providing a good "soft" environmental services at the same time, and often organized enterprises "going out", to participate in domestic and international product marketing activities, through these fairs allow enterprises to understand the domestic and foreign market, capturing market dynamics, and actively seize market opportunities, so that their products on export farther smoothly.