Excavate Market Potential Hardware Enterprises Should Increase Technical Equipment Updates

In recent years, decorative hardware companies have sprung up and spread all over the country. However, due to the old concept of production, many SMEs still remain at the level of pursuing quantity. The quality of products cannot be guaranteed, and the industry needs to catalyze itself.

In all major and small markets in the country, most of the local decorative hardware dealers are small businesses, mainly based on small workshop-style shops, with scattered shops and weak brand awareness. These companies often rely on price wars and sales to win, making only a small proportion of the brand, resulting in the industry there are scattered, chaotic, and small phenomenon. The old business model is far from adapting to the rapid development of the market.

Dealers who use small-brand products at a low price tend to base themselves on the preferred standards in third- and fourth-tier cities, resulting in small product differentiation, fierce market competition, and continuous dilution of catalytic profits, thereby prompting most products to fight prices and services. However, many manufacturers do not have innovative R&D capabilities and continuous development strategies. They just blindly copy and copy, and their product processes and styles are almost identical. The homogenization of the entire market is very serious. The business model is single and conservative, which seriously causes the hardware industry to enter the price. Vicious competition.

Luo Baihui believes that hardware companies should actively increase technical equipment updates and product updates, and quickly complete the development of products from low-level products to high-end products, shifting from price-based to high-quality, high-tech product competition. With the deepening of competition, the overall profit space of the hardware industry chain is being compressed, and the space for price reduction is shrinking. Enterprises should be aware that price competition alone cannot enhance core competitiveness, nor is it the direction of long-term development. Enterprises must work hard to explore new development paths. Should increase the technical input, develop new products with high technology content, take the product differentiation as the long-term plan for the development of the enterprise, and seek new market demands to realize the sustainable development of the enterprise.

In fact, hardware accessories play a key role in connecting, decorating, extending functions, and extending lifespan in household products such as cabinets, wardrobes, doors and windows, and sanitary ware. Although it is so important, but people's attention is not high, hardware accessories industry is still only in the development stage, the market potential for consumption has yet to be tapped.