China's hardware industry foreign trade and brewing five major changes

Abstract According to customs statistics, in 2010, the total import and export volume of China's hardware industry reached 74.923 billion US dollars. The year-on-year growth rate reached 30.1%, of which the total export value was 57.51 billion US dollars, an increase of 31.4% over the same period of last year; the total import value was 17.412 billion US dollars...

According to customs statistics, in 2010, the total import and export of China's hardware industry reached 74.923 billion US dollars. The year-on-year increase was 30.1%, of which the total export value was US$57.51 billion, a year-on-year increase of 31.4%; the total import value was US$17.412 billion, a year-on-year increase of 26%. For the excellent achievements in the hardware industry, Shi Lanlan, executive vice president of China Hardware Products Association, said that in the downturn of development, China Hardware Products Association guided the adjustment strategy of the whole industry, accelerated transformation and structural adjustment, and shifted from export-oriented to The two legs of the domestic trade and foreign trade, both domestic and foreign markets, continue to explore the domestic market. This kind of positive driving effect has achieved remarkable results, which triggered a comprehensive rebound in the hardware industry, especially in the domestic sales, showing an explosive growth, achieving a high growth rate of 27% in the whole industry.  

Although China's hardware industry achieved good results in 2010, the "Twelfth Five-Year Plan" has higher requirements. The state has proposed that the industry should be transformed into a low-carbon environment, but how it turns, it requires the industry and enterprises to conduct in-depth thinking and deep-seated changes in light of their own conditions. Transformation is not a change, not from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, moving from the current situation to a higher-level industrial model.

Shi Lanlan said that in the recent period, the China Hardware Products Association has refined the five major changes implemented during the 12th Five-Year Plan in accordance with the direction of the 12th Five-Year Plan and the requirements of the national industrial policy. This is the next five years. The main direction and focus of the hardware industry planning and upgrading. The five transformations were introduced.

The first change is: the transition from extensive to intensive. Change the original industry small, multi, weak, scattered status, improve product processing capabilities, enhance manufacturing equipment, technology, create brands, and take an intensive development path.

In the development process of the past 15 years, the hardware industry has basically taken the road of extensive development. The drawbacks of high pollution, low level, duplication of labor, surplus of low-end products, and shortage of high-end products have always existed, which not only caused waste of resources, The destruction of the environment also restricts its own development. Today, this growth model has come to an end.

The core of extensive transformation to intensive transformation is to improve product processing capability and quality level, and to take the road of independent innovation and independent brand development. Improving quality, creating their own brands, channels, and independent innovation capabilities have become a top priority, and the transition from extensive to intensive is imminent.

The second shift is: from labor-intensive to technology-intensive. Labor-intensive industries can also introduce modern electronics, IT and other technologies into the industry.

The faucet industrial design competition announced at the China International Hardware Show 2010 is the demonstration and guidance of the whole industry from the industrial design to increase the technical content and added value of the products. The hardware industry has a wide variety of products, each with its own characteristics, and it is a technology-intensive road with a lot of room for growth.

The third is the shift in the expansion of quantity toward qualitative improvement. The current situation of product homogenization and low-level repetitive labor in the industry has not improved, but everyone has begun to realize this problem. In order to realize the transition from a large producing country to a strong producing country, we must overcome the current situation of too many low-end products and insufficient high-end products. At the beginning we mentioned that the import value of construction hardware in 2010 was 4.99 billion US dollars, an increase of nearly 30%. It can be seen that the market equivalent to more than 30 billion yuan has been occupied by foreign brands.

The fourth is low cost, low price, high value added, and high profit margin. At present, the construction hardware industry still has low-cost competition among peers and disrupts the status quo of the industry. This kind of competition is completely a kind of harm to the industry, and the final result can only be lost. A positive example is the range hood industry, which is an important product in the hardware industry and has not been subjected to price wars until now.

The construction hardware industry should also analyze its own price characteristics, increase its own brand connotation, create and promote the establishment of sales channels, and cannot be a solid hollow enterprise. It is necessary to make more efforts in brand promotion and market hardware. At present, the domestic market is very mature, and the quality and taste of consumers have also improved. Therefore, rooted in the domestic market, especially in the high-end market, it is able to grasp the initiative and is not afraid of the impact of the crisis. At present, production costs, living costs, and social costs are increasing, and product prices are also facing great pressure. How to adjust also requires companies to make detailed planning.

The fifth is to export OEMs to the main brands. Paying attention to the domestic market is not abandoning the international market. Walking on two legs means that both domestic and foreign markets are equal and parallel. However, as a key enterprise in the industry, OEMs can stop doing business that wants to be a century-old store. OEMs are always on the order, production and delivery. They know nothing about the domestic market, standards and trends. This kind of industry model that is completely dependent on each other is actually very dangerous and passive. Once the customer changes, Enterprises are likely to fall into a comprehensive crisis. Therefore, in order to continuously improve products, enterprises, and long-term development, we must master the initiative of the brand and embark on a solid road of independent brands.



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