With the continued rise in prices of eggs and pork, a new wave of price increases has once again swept our daily lives. As a barometer of the market economy, every change in the price of agricultural and sideline products will trigger a "butterfly effect."
Under the oppression of “garlic yours†and “strong pigsâ€, prices for a range of hardware such as door handles, locks, aluminum alloy doors and windows, bathroom hardware, etc. are rising. At the same time, the price of hardware raw materials also showed an upward trend, with the increase rate reaching more than 20%.
Whether it is market participants, hardware manufacturers, or home hardware operators, there is no timetable to refer to when the “up†sound of hardware can come down. How to deal with the narrow profit space, hardware manufacturers bear the brunt of it .
Create a combination of internal and external methods to reduce costs
The price of metal raw materials continues to rise, pulling the nerves of hardware companies. Relying on suppliers to reduce costs, improve quality, and surpass competitors in the development of new processes and new products, it has become an industry trend to dominate the market.
Yong Yi, chairman of Yongkang Yili Vehicle Industry Co., Ltd., said that the material price increase will affect the entire hardware and electronic machinery industry. "The key issue is that metal raw materials have risen in price, and most companies still have to think of ways to survive. This depends on how companies change their business ideas."
Internal architecture adjustments. In the production process, we must carry out technical reforms, improve production processes, strengthen management, and reduce internal friction; we must find better distribution channels and logistics channels in circulation, change the tactics of people everywhere and reduce the marketing costs and logistics costs of enterprises. From a perspective, it is a good idea to rely on a large professional market platform that has a large scale, a wide range of markets, and good transportation and logistics conditions.
Seek foreign aid cooperation. It is a quick and easy way for manufacturers and suppliers to establish contact with each other. In the United States and Japan, there is an “alliance system†of closely connected supplier networks, allowing suppliers and manufacturers to establish long-term cooperative relationships, learn from each other, improve, and grow together. .
Enterprises that rely heavily on metal raw materials, especially those that produce household hardware, and share resources with upstream suppliers to achieve a fixed trade cooperation can well control costs and reduce initial investment at the source.
In addition, the hardware and electromechanical companies should strengthen the information platform construction, timely grasp market information such as raw material price trends, new technology and new product information, and logistics dynamics, respond to possible crises in time, and increase their ability to resist market risks.
Take the road of independent innovation and build a brand
In response to changes in the environment, is it feasible to increase prices? When the price war is desperate, the author believes that the price increase is to be discussed.
"How has the decorating cost recently increased so much? The budget of 30,000 yuan set a month ago has now become 40,000 yuan!" Faced with metal prices, consumers can not even shout.
Now some companies have to raise prices, but they have not been able to keep up, because in the past few years because of low costs and low selling prices, consumers have been regarded as low prices in the industry and enterprises. Today, they have to raise prices. Consumers and sellers do not accept it. Do not buy it.
Strong companies can meet customer needs in terms of supply cycle, production capacity, and product quality, and have room for negotiation in terms of price. Small businesses, especially small workshop-style enterprises, can only opt out of the market because they cannot carry market pressure.
In the face of rising prices of raw materials, we must not only passively seek low-cost procurement, because others you can find can also be found, the competitiveness is not strengthened, the operating costs of enterprises are reduced, the technological content of products is increased, and brand strategy is implemented. The development of this.
The author advocates hardware companies to take the road of own brand, train their own sales team, change the past "OEM" business and win autonomy. Only by building their own brands and owning their own proprietary products can they avoid the sand “washed out†by the market.
For dialysis hardware companies, we can easily see everyone's attention to branding. For this reason, if the company is still not strong enough, it must find a way to develop the brand and achieve: select brands, select products, select markets, refine the team, and streamline management.
Marketing promotion, learn to leverage, take advantage of marketing, leveraging force, borrowed to play. Jinliufu Wine Co., Ltd. can build a wine brand, and cannot help with the help of Wuliangye, the oldest liquor company. After cooperating with Wuliangye, Wuliangye has quickly emerged a successful road from OEM, brand building to brand ownership.
The hardware industry is a large industry related to the national economy and the people's livelihood. It is closely related to people's lives. In the macro environment, the price war is a good thing for the development of the industry, and the hardware industry is no exception. Looking at the challenge as an opportunity and adopting a positive attitude to cope with it will only usher in a bright future.