Analysis: China's hardware companies must take the road to marketing

In the 30 years of reform and opening up, due to the scale effect, it has made remarkable achievements and made a lot of contributions to society. The Chinese hardware industry has developed rapidly in recent years and has formed a complete set of tool hardware, daily hardware, electromechanical hardware, stainless steel hardware, and abrasive mold hardware. Industry categories, and formed a large number of unique industrial bases, such as Guangdong Zhongshan Siu Lam formed a lock, gas appliances as a leader, the upstream and downstream products and various accessories complete industrial clusters. The Hardware City, including Guangdong Hardware City and Guangdong Mechanical and Electrical Hardware City, formed the center of trade activities, gathered together, and had a strong scale effect, which provided a strong backing for the rapid development of Guangdong. Luo Baihui, head of the International Die and Plastic Hardware Industry Suppliers Association, believes that the marketing and development of hardware companies need to take into account various value effects. For example, the economies of scale formed in the Pearl River Delta region and the resulting benefits are obvious to all. Hardware companies should pay more attention to the value brought by scale effect, which is also the only way for hardware companies to develop.

The six major effects determine the hardware business market Shenwu hardware companies marketing and development need to take into account a variety of value effects, such as the scale effect of the formation of the Pearl River Delta region and the resulting benefits are obvious to all, and some large hardware companies should pay attention to scale The value brought by the effect is also the only way for the development of hardware companies.

1, leading effect.

One step ahead, step by step. Step by step, first, this effect applies to the hardware market, in a specific environment, because a particular technology or brand leading other companies in the same industry will inevitably drive the development of the entire enterprise. For example, hardware locks, hardware locks can be found everywhere in the hardware market, branded, unbranded, in short, a mixed bag, once a hardware lock company has an advanced patented technology, invented a new product, with This kind of new product puts on the market and obtains the good economic efficiency, this kind of leading product will inevitably drive the hardware lock enterprise's overall development, and has given a great step to the success that the industry produces first.

2, lock effect.

When users move from one brand of technology to another, they will certainly pay a certain cost for this transfer. When the transfer cost is too high and users lose their feet, the user is locked. When a high-tech product is successfully developed and wins the market, it can easily grasp the future market and take the initiative in fierce competition. This is also applicable to the hardware market, first investment, because the hardware cost is too high, will inevitably be daunted by the user, but once this hardware product is recognized, then this hardware product must lead the industry and promote the development of the industry.

3. Matthew Effect This is an era where winners take all-or-nothing. Rich people enjoy more resources—money, honor, and status. The poor have nothing. The poorer the poor, the richer the richer. People with many friends will make frequent contacts to make more friends, while those who lack friends will always be alone; those who have a reputation will have more chances to appear, and therefore will be more famous.

4, gear effect.

Large enterprises do not develop, and once they are developed, small businesses are left behind. The gear effect is also applicable in the hardware market. Some large companies have advantages in terms of resources, money, contacts, and information. Once they are developed, they will take a big step. Small companies will be affected by resources such as funds, talent, and information. Limited development is slow, even halting. Such large companies have increasingly surpassed small businesses in the industry and have gradually become industry leaders.

5, aggregation effect.

The more companies with outstanding performance and abundant funds, the more banks want to give it premiums, which is the effect of capital accumulation. Under the financial crisis, some large-scale hardware companies have achieved outstanding performance. Once a financial problem arises, no matter whether it is through the bank or other companies' shares, it will correspondingly alleviate the current predicament, and will inevitably make it easier to collect funds. Once some small hardware companies encounter financial problems It is almost impossible to move. Chinalco’s $19.5 billion investment in Rio Tinto and the highest record of overseas investment by Chinese companies were again refreshed by Chinalco. Although Chinalco purchased a 12% stake in Rio Tinto in the United States on February 1, 2008 for US$14.05 billion, it has become the biggest loss overseas investment by Chinese companies so far. Apart from other complicated factors, no one can deny that Chinalco has taken a fancy to the fact that Rio Tinto is one of the world’s three largest iron ore giants. The famous students are already out. Chinalco’s risk of losing everything is solemn. Shares Rio Tinto. The better the performance, the easier it will be to congregate funds.

6, the scale effect.

When corporate production reaches or exceeds the break-even point, economies of scale are achieved. Because any production is costful, it generally includes fixed costs and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed costs among them are constant, so the more production, the less the fixed costs allocated to a single product and the more profitable.

Innovative technology and brand is the only way to build a powerful country of hardware. After more than 30 years of hard work, the Chinese hardware industry has become a veritable hardware country. After joining the WTO, with the reduction of import tariffs, foreign high-quality hardware products will be driven straight into China’s hardware companies. The transformation of the "Hardware Power" into a "Hardware Powerhouse" requires the expansion of the brand and industrialization of the two wings. Luo Baihui, head of the International Die and Plastic Hardware Industry Suppliers Association pointed out that China's hardware products exports only earn 3% of total exports, not only the issue of technological content, but more importantly brand issues. The brand includes a lot of content, including services, reputation and so on. Reputation is golden, and honest business is fundamental. If we produce hardware products that don't carry people's brands, but sell them under their own brands, and they can sell at the same price as OEM, then our GDP will double. At the same time, to enlarge and strengthen China's hardware industry, the involvement of large consortia is a key factor. Japan’s Panasonic and Sony did not originally engage in electrical appliances, but they were a large consortium. After seeing the prospects for the development of household appliances, they all stepped in, and now they dominate the world.

With the continuous opening of the hardware market, business warfare has intensified and a large number of foreign hardware companies have entered the Chinese market to open up new fields. Faced with market competition that competes with each other, how to be invincible in such fierce competition has become a problem that all high-level decision makers in hardware companies have to consider. Creating China's own brands that are commensurate with the market is an issue that we urgently need to address. With the entry of the WTO, a large number of well-known international brands will also be flooded into China. This is what we often call the "wolf." "The wolf is coming" is nothing terrible. The key is that we must have a very good chance to block it. The development of the production and marketing of China's hardware industry must follow the domestic and international trends towards internationalization, and the new marketing ---- to stimulate the development of enterprises, to create an international concept. At present, China's hardware products have hardly ever played an international brand. Like Zhejiang Yongkang, although it enjoys a good reputation at home, it is still Zhejiang Yongkang, not China's Yongkang, and has not yet gone abroad. It is believed that after a period of hard work, there will be more and more brands of Chinese hardware products in the international community.

China's hardware company brand operation strategy With the development and maturation of the market, the homogenization of products is becoming increasingly obvious. Substantial innovations to achieve product differentiation have been difficult, which, to some extent, has increased the cultivation of brand personalization. The difficulty. At the same time, with the advancement of the information and communication industry, the power of manufacturers is weakening, and the brand's function of simplifying customer search for product information is also weakening. Consumers are increasingly reluctant to differentiate products that do not actually exist. And pay an extra fee. All these factors have brought great challenges to the brand management of enterprises. How should the brand management of domestic hardware industry deal with these potential issues? Luo Baihui, head of the International Mould and Plastic Hardware Industry Suppliers Association, believes that first of all, we must learn from foreign companies' changes in the management system and the adjustment of strategies for this issue. Secondly, through the experience summary of strong brands, it can provide some useful reference for domestic enterprises to implement brand strategy. Strong brands are generally considered to be brands that can adapt to the environment particularly well to survive and thrive. Having a strong brand often means gaining consumer loyalty and huge commercial profits. The management of a strong brand often includes the following important factors: 1 Maintaining a good relationship between the brand and the consumer, so that it can meet the special needs of consumers; 2 Correctly positioning the product and establishing the price of the product based on the perceived value of the consumer; 3 Adopt appropriate brand numbers and brand hierarchy to maintain the consistency of brand image; 4 Give the brand long-term and appropriate support, implement and balance various marketing activities; 5 Managers deeply understand the significance of the brand for companies and consumers; 6 pairs of brands Efforts are effectively monitored to safeguard brand equity.

As a mark of a certain product or service, "brand" has become a powerful weapon for hardware companies in business warfare as an intangible asset. Today, the people's brand awareness is becoming stronger and stronger. The purpose of consumption is not only basic living needs, but also higher level satisfaction. This is also the result of continuous social progress. In terms of hardware companies, in order to fully realize marketization, it is necessary to work hard on "brands."

1. The market analysis is the basis and the strengths and weaknesses emphasize the characteristics “Without investigation and research, there is no right to speak”. Similarly, lack of basic analysis of the market, lack of meticulous planning, aimless advertising, can only be their own money. Fluctuated. Some companies do not have any information on their own advertising, do not know how to vote, where to vote, how much to vote, or according to the views of various distributors, where to make a street sign, which bus to be a inkjet; or in the industry A few magazines or newspapers do a few color pages; either they can earn a face and a five-second appearance in the middle of the night in the central station or the central six stations...

In fact, in doing so, first of all, not all of them are qualitatively leapfrogging in terms of the quality of the product itself. Some are merely appearance and packaging improvements. In doing so, one of them is lack of trust for consumers; the other is to downplay the original product image. Luo Baihui suggested that while the company promotes the brand level, it must pay more attention to its own characteristics and advantages in the new target market.

2. The image of CI is sustainable, and the brand extension has a hardware company. Since 1996, CI has been introduced. Three advertising companies have been invited. The first family designed a CI image and spread it after more than a year. The results did not feel very good, so they invited the second one again. The second company caters to the boss’s mentality, comes to a drastic improvement, and then invests a large amount of money to spread it. The effect seems to be better. After more than a year, it feels that the image and grades of other people are improving. We are still old faces. No, Have to mention. But this time it is not for the outside. The price is too expensive. As a result, the new design is even more varied. Almost every advertisement is a new layout. With an image metaphor, advertising can not be like wearing clothes, often change, that people envy you ah? In fact, people do not know you for a long time!

Successful pre-owned brands often attract a large number of manufacturers to imitate their products and establish new brands. But these brands do not bring real value to the market, but only add unnecessary disturbances. Similar interference can also occur within the company. For example, if the market is not properly segmented, the new brand may affect the performance and value of the original brand. For consumers, they are exposed to thousands of advertising messages every day, causing them to be confused, and the results will inevitably lead to a serious weakening of the brand's functions. Luo Baihui believes that brand extension is a method to effectively expand the business scope and product category. For example, in the 1980s, about two-thirds of new products in the United States were introduced into the market through brand extension methods. However, this practice also tends to cause confusion in the brand image, and the value of the core brand is diluted and diluted. It may help manufacturers increase sales in the short term, but it may weaken or even destroy the original brand. Therefore, the Procter & Gamble Company, known as the "Kingdom of Brands", now has to take corresponding measures to make the brand image simple.

3, product advertising on taste, cultural elements create effects Advertising is just a means of dissemination of information. Enterprises and products need to be advertised, advertisements can bring high reputation and create brand effects, but advertisements can not allow products to have intrinsic temperament and charm. Some corporate executives simply believe that as long as the big investment in advertising, bombardment bombardment, can produce a brand-name effect, enhance the brand image, which will bring about an increase in sales. In the market competition, enterprises must not only continuously innovate in marketing methods, but also promote product development through product innovation. For example, Apple's products range from computers to iPods to ipones, which perfectly combine product design, marketing, and user experience. According to statistics, in 2007, Apple's earnings rose by 75%, and stocks rose by 146%. Not only did the new products sell well, it also led to an increase in sales of computer businesses. Before setting up a brand, give the product a suitable name. In the hardware industry with many products and brands, good names are particularly important. The brand name is part of the product and company's strategic plan. It is innovative, strategic, and requires long-term testimony. Before the consumer does not come into contact with the product, the brand name must first be heard, touch the soul of the consumer, and resonate with the customer, so that the product or brand can stand out.

Successful advertisements require more effort in product quality, service, innovation, and planning. The brand recommendation of the model code culture for hardware companies is a kind of core quality appeal and commitment to consumers. She concentrates on Product service quality, technology, taste and culture. Hardware companies do not have the experience of planning, designing and packaging, and seek a professional cultural communication company to help enterprises plan and design packaging. Jeff, Star, and Panpan in the hardware industry are easy to remember and read well. Packaging design must also be matched with brand positioning and brand strategy.

In marketing, brand building belongs to the strategic level, which is high investment and high returns. There is a rule of brand operation that is 1+1>2. As long as the brand is successful, its extended brand and derivative brand can all be used. The product line of the company can be extended and the market can be bigger. Luo Baihui believes that brand building should first establish the company's core brand and focus on fostering; secondly, establish the brand core culture and core values; once again establish the brand's core demands; and finally invest in propaganda and persist for a long time. If the brand's operating content is ever-changing and gives consumers dazzling feelings, the brand image cannot be accumulated, and a strong brand cannot be established. The brand identity should be friendly and open. For a brand, the most important thing is to increase the brand's popularity in the minds of consumers and cultivate the brand's affinity. In addition, the brand image is present in the minds of consumers. Therefore, domestic hardware companies must pay attention to and strengthen the management of customer relationships in order to coordinate the company's brand strategy.

From the introduction of the previous image to the maintenance of the brand in the later stage, each step in the middle requires the enterprise's decision-making layer to formulate a corresponding plan according to the constant changes in the market, and utilize the characteristics and advantages of the enterprise to increase brand awareness. The hardware industry must step out of the long-depressed market and there must be no brand that consumers can trust. Who will eventually establish a brand worthy of the public trust, who will be invincible in the competition. It is believed that the hardware industry will actively pursue the road of brand management by unremittingly exploring the perfect combination of the traditional model and modern high technology, and the prospects will be bright. The development of the hardware industry will certainly promote the steady development of China's overall economy.

The combination of market and industrial regions is the development needs of the International Die and Plastic Hardware Industry Suppliers Association Luo Baihui further pointed out that our hardware production companies should take national interests as the top priority and must not engage in unfair competition because of their own interests. China has a vast area. The conditions for the development of the economy in each region are quite different. The hardware industry also has a distinct regional nature. This is related to China's national conditions and is also a feature of China's hardware industry. At present, the Yangtze River Delta and the Pearl River Delta have become China's fastest growing economic regions. In recent years, the Yangtze River Delta Economic Zone has become the fastest growing area for foreign investment. Under this situation, the Jiangsu hardware industry has a huge advantage. This kind of advantage can be maintained and promoted through the expansion of the hinterland. For the other hardware industrial bases in China, first of all, we must first understand that there are relatively little known issues and that there is competition before development, but the development of hardware industry belts will inevitably adhere to the healthy competition among various industry bands, which will also benefit each The enhancement of the hardware industry in the region and the acceleration of economic growth. The market must be linked to local needs and industrial development. The hardware market cannot be an exception. This is the need for the development of a socialist market economy.

Integration of resources, the dream of a round of hardware power China exports more than 100 billion US dollars in hardware products each year (not including the mechanical and electrical products in the concept of general hardware), but the real gain is minimal, which is a matter of great concern in China's hardware industry It is also a fundamental issue in China's hardware industry. At present, China's hardware manufacturers' original accumulation and wealth accumulation have not yet reached a certain level. Therefore, it will take a long time for the hardware industry to become bigger and stronger. This is inevitable. Luo Baihui believes that in the process of internationalization, we must face challenges. We must first set up a good platform and integrate resources. The goal of our hardware industry is to catch up with Europe and the United States, to meet the advanced world level, and to truly round the dream of our hardware power.