China's hardware manufacturing industry accounts for more than half of the world's production

The development of any thing has its own development law, and the hardware market is no exception. The development of the hardware market in China first benefits from the development of China's economy and benefits from the rapid development of China's hardware industry. China's hardware manufacturing industry is already the manufacturing base of the world's hardware industry. Its production share accounts for more than half of the world's hardware manufacturing. China's hardware manufacturing industry is in a stage of rapid expansion, which lays the foundation for the development of the national hardware market. However, in terms of specific hardware markets, it is essential that you want to become bigger and stronger and do the following three tasks.

First, to adopt a differentiated business strategy, the division of branches, market segments, and the formation of a professional, large-scale market is the primary guarantee for market prosperity. Take Hardware City of North China as an example. At the beginning of the market, Tianjin’s hardware Before 2005, the market was dominated by Old Nanma Road Hardware City. Due to historical factors, it was located in the downtown busy area. According to the characteristics of the hardware market, we believe that the hardware market cannot remain in the center of the city for a long period of time. After inspecting the overall city of Tianjin, Urban planning, site selection, near the outer ring road and the land along the 205 national road, the market area can be radiated to the urban areas of Tianjin, surrounding districts and counties and the Binhai New Area, and can be far away from Beijing, the three eastern provinces, and Hebei Province. The preferred place.

However, as the emerging Hardware City and the Old City formed a complementary relationship and gradually expanded themselves, we chose a differentiated complementary strategy. In 2006, we began to establish a unified orientation of the current A, B, C, and D zones. Planning, areas A and B are hardware appliances area, area C is solar energy area, area D is pipeline valve area. In the later investment promotion, many construction machinery and machine tool equipment operators think that our city buildings are spacious and the floor height is relatively high. The road is wide, suitable for large-scale equipment in and out, one after another into the city to operate, we follow the requirements of the market in the A, C area on the west side of the street to open up a mechanical equipment professional street, so that the four areas of the industry planning and other hardware market in Tianjin The positioning of the two companies is different from each other, forming the same results as the differences and complementary effects. By the first half of 2007, the four major professional wholesale markets have basically taken shape.

The hardware industry is all-encompassing, with many types of products, such as large steel products, machine tools and equipment, and small screws and screws, covering a very wide range of industries. Although the hardware city is relatively large, it cannot accommodate all hardware products and must be based on Within the scope of economic development and characteristics within the scope, adopt differentiated business strategies to segment the market, choose the hardware industry that is suitable for their own market development, targeted investment, form their own characteristics, and form a professional market advantage.

Second, the unified management of shops is an important guarantee for market development. At present, most of the hardware market is constituted by property-based shops. It is not a property-based shop that does not operate well. According to our experience in operating several markets in East China, The successful practice is that the shops are sold to the dispersed owners. At the same time, the market management company and the owners immediately sign the entrusted management contract, which provides the owners with stable rental income as a reward. The entrusted operating period should be more than 5 years, and the unified entrusted operation should be It ensures that unified market planning can be carried out for different regions of the market. At the beginning of investment promotion, it can conduct unified investment promotion according to the market's business planning. While avoiding the phenomenon of mixed business chaos, it also promotes the formation of scale effects and makes the difference. The functional areas are bigger and stronger, forming professional market advantages and economies of scale. The four major regions in North China Hardware City are compatible with the four major professional markets we operate in. If we do not have a unified operation, we cannot do so. Under the premise of unified entrusted operation, the management company should preferably retain more than 40% of its business area, and within two years of starting the market, implement preferential policies such as rent-free policies to promote the entry of big brand manufacturers, general distributors, and first-tier agents. Provide room for maneuvering, and at the same time, use 40% of the self-retained business area in the development of the market to leverage the rent policy.

Third, strong brands are the core competitiveness of the market. Under the market environment where the types and quality of modern products converge, the essence of competition is the competition of brands. How to form a strong brand is a must for every enterprise and every hardware market. The formation of a strong brand includes two aspects. On the one hand, it is the brand's broad awareness and on the other hand, the brand's strong centripetal force. In this regard, Zhejiang Yongkang and Wan Guan Hardware City are at the forefront.

The brand's broad recognition includes two aspects: a brand of the hardware market itself, such as the brand of China Northern Hardware City, which was written by our husband Wu Dao, and many foreign customers who bought the business outlets in Tianjin say that we are The name of your hardware city comes from the atmosphere, and the other is the visibility of the manufacturers and products operating in the city. The brand of the hardware market needs the management company to publicize through various advertising media and marketing activities, and it is even more necessary for the merchants in the city to do business. Intermittent promotion leads to a well-known situation. The advertising of Zhejiang Yongkang Hardware City and East China Hardware City on CCTV is very representative. It can be said to be a household name overnight. Of course, the selection of this media is based on the market's own radiation business circle and different stages of development. To locate; strong brand centripetal force is to allow customers to form a brand of subconscious and conscious buying habits, just like buying drinks, we first thought of Coca-Cola, Huiyuan juice, to buy fast food first thought of KFC, McDonald's, Yonghe milk, participate in hardware The first thing that came to mind at the exhibition was the Las Vegas and Cohen hardware exhibitions in the United States. The hardware market first thought of Zhejiang Yongkang China Hardware City. This was a long-term accumulation of brands and a potential awareness in the customer’s mind. Buying habits.

The formation of brand centripetal force, in the modern fast fish to eat slow fish market environment, the hardware market brand can not be as little as a decade accumulated in the past to form, but must be within three to five years to be in the industry The formation of a good reputation, so the formation of a wide awareness of the brand through the advertising campaign is the premise of the formation of the brand centripetal force, here I will not go into details. What is the key to the formation of brand centripetal force lies in the product advantages of the merchants in the hardware market, the advantages of the subdivided hardware professional market, and the advantages of scale, such as the professional plastic pipe valve wholesale base currently being developed by China North Hardware City, more than 400 There are tens of thousands of varieties of products, well-known brands, and mid-range and low-end products from manufacturers' offices, distributors, and distributors all over the country. Buyers come here for a one-time purchase and do not need to run to the west. In just over a year's time, it was known to the vast number of buyers in Tianjin City and formed a good reputation for buying pipeline valves and going to the North Hardware City. The branding of the hardware market is based on the completeness of product specialties and the strong appeal of similar products. With the powerful brand centripetal force of the hardware market, the market is not prosperous.

Although China has become the manufacturing base of the world's hardware, the vast majority of our hardware products are still in unbranded or brand-name products. Compared with the hardware products of developed countries such as Germany, South Korea and the United States, there is still a big gap between us. The competitive advantage in the market is to rely on low prices to win, and the added value is very low. This is similar to the development stage of the hardware industry in Japan and South Korea in the 60s and 70s. However, we cannot always rely on low prices or OEM processing. To upgrade the industry to meet the needs of the market, hardware products from many developed countries have been entrusted to us to process in recent years. This shows that China's hardware manufacturing industry is not low, and the key is our lack of brand awareness and lack of world-renowned brands. product. As the hardware market is a direct window for the development of the hardware industry, it plays a role in guiding industry trends. In this regard, we must also have an international perspective to develop the market and allow our products to participate in the international competition environment. In this regard, Yongkang China Hardware City is at the forefront. We also organized several companies to exhibit in Las Vegas in the United States in May this year to guide their products to enter the international market. The annual import and export volume of hardware industry in Tianjin reaches several. One billion US dollars, most of which have entered the countries and regions of Southeast Asia, Northeast Asia, the Middle East, and Africa, the North China Hardware City will make full use of the advantages of Tianjin's international ports to guide the development of the hardware industry to mid-to-high-end brands and form some national brands of hardware products. , making it a modern, professional, international hardware logistics headquarters base.

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