Hardware manufacturing operations tend to be active

With the rapid rise of China's economic strength, China's hardware manufacturing industry has also made considerable progress, capital operation has gradually become active.

The capital operation in the industry will tend to be active in the global competition environment. In order to obtain a favorable competitive position and improve competitiveness, industrial capital is another theme of the industry's operation. In 2004, Supor and Vantage went on the market successively. Hongbao was also working hard for the listing. Wanhe's capital market operation will not stop due to the failure of restructuring with Yuemei. From a capital perspective, the current major feature is the expansion of capital. From the point of view of competitive behavior, cooperation in resource sharing among enterprises is increasing.

The polarization of enterprises will further exacerbate the high-speed oscillation period of the hardware industry in the next few years. The direct consequence of this high-speed shock is the expansion of the polarization trend in the current hardware and kitchen brand camp. It is expected that the hardware companies that can really survive in the market in the next few years will definitely not be so much now. However, this high-speed oscillation in the hardware industry will bring huge opportunities. The result of the shock will make the market operation more rational.

Channel competition will become increasingly fierce due to oversupply of domestic hardware and kitchen products, increasing pressure on quality, sales channels become one of the key competition factors, the competition for various channels is becoming increasingly fierce. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales expenses, and make sales channels more professional. The company's sales model has been able to adapt to multiple markets at the same time. On the other hand, the development trend of the sales industry has led to the continuous rise of the status of large-scale home appliance chain stores, increased control over the industry, and participation in the price competition that was previously dominated by manufacturers.

Large retailers, with their broad market coverage, purchasing scale, and cost advantages, will increasingly control the production companies in terms of product pricing, payment, and delivery.

At the same time, the requirements of the international market for China's hardware products will gradually evolve and change. There will be higher requirements for the quality, packaging, and delivery deadlines of Chinese products, and even gradually extend to the production process and product development, and the products and the environment , energy resources, and humanities combined.

Market competition will shift to high-quality, high-tech products. With the deepening of competition, the profit margins in all stages of the hardware industry chain are being compressed, and the space for price reduction is decreasing. More and more companies are realizing that it is impossible to establish core competitiveness based on price competition alone, and not the direction of long-term development, in an effort to explore new development paths.

Many hardware companies have increased their investment in technology, developed new products with high technology content, made product differentiation as a long-term plan for enterprise development, sought new market demand, and established new economic growth points (into small household appliances and Other similar industries) to achieve the sustainable development of enterprises.

The integration of domestic and foreign enterprises will further speed up the domestic hardware companies to increase their own strength and expand international markets more quickly. Through various means, they will accelerate the integration with foreign companies to improve product quality and competitiveness. While continuing to expand markets in the United States, Japan, and other traditional countries, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom.

Overall, China's hardware industry will continue to maintain the momentum of structural adjustment, but at the same time it will continue to highlight some bright spots. The polarization of hardware companies will intensify, and some companies that do not adapt to market competition will withdraw from market competition through different channels, and hardware giants will gradually surface.