Since the reform and opening up three decades produced impressive scale , made ​​many contributions to society , Guangdong Hardware industry developed rapidly in recent years , metal forming tools , hardware , electrical hardware, stainless steel hardware , abrasives and other more complete hardware the industry sector, and the formation of a large number of unique industrial base , such as Zhongshan Xiaolan locks, Yangjiang tool. Zhongshan Xiaolan formed the locks, gas appliance as a leader, on the upstream and downstream products and all kinds of accessories complete the industry group. Guangdong Hardware City , Guangdong City Hardware Electrical Hardware City and other activities constitute a trade center , enrichment gather momentum , resulting in strong economies of scale , which provides a strong backing for the rapid development of Guangdong. Luo Baihui that the hardware industry experts , marketing and development of hardware companies need to take into account the scale and efficiency of scale for example, the PRD and the resulting formation is obvious , some large hardware companies should focus on economies of scale brought about value , which is the only way for the development of the hardware business .

A leading effect .

Step ahead , leading the way . First step first step , this effect applies to hardware market , under certain circumstances , as a specific technology or brand ahead of other companies in the same industry , will inevitably bring about the development of the whole enterprise . For example, metal locks , metal locks on the hardware market can be everywhere , branded , unbranded , short cohabitation, once a hardware lock company has an advanced proprietary technology , invented a new product , with the this new product on the market and achieved good economic returns, this leading product development will inevitably lead the overall enterprise hardware locks and priority industry successfully produce a big step .

2, the lock-in effect .

When a user from one brand of technology transfer to another brand of technology , this shift is bound to pay a certain cost. When switching costs are too high, allowing users to stay away , the user is in a locked state. When a high-tech product development success , after winning the market , it would be easy to grasp the future market share in the fierce competition in the initiative . The same applies in the hardware market , the first investment , since the hardware cost is too high , users will inevitably be prohibitive , but once this hardware product to be recognized, then this is bound to lead metal products industry and promote the development of the industry.

3 , Matthew

This is a winner -take-all era, the rich have more resources - money , honor and status of the poor has become nothing. Poor are getting poorer , the rich richer . Many friends who frequent exchanges will help to make more friends , and friends of missing people , are often been lonely ; chance fame of people , there will be more public appearances , therefore, will be more famous.

4, the gear effect .

Big companies do not develop already, a small business development will throw far behind . Metal Gear effect also applies to the market , some large enterprises in the resources , money, contacts , information , and so has the advantage , once developed , will take a big step ; while small businesses because of funding , personnel, information and other resources by limited development has been relatively slow , even stalled. Such big companies increasingly beyond the industry 's small businesses , has become the industry leader.

5, the aggregation effect .

The more of those outstanding performance , well-funded companies, banks want more seniority payments to it , this is the effect of capital accumulation . Under the financial crisis , some large hardware companies outstanding performance, once the capital of the problem , whether it is through a bank or other company 's shares will be appropriate to alleviate the current difficulties will inevitably easier to gather funds ; some small hardware business in the event of financial problems almost unable to move. Aluminum $ 19.5 billion investment in Rio Tinto , the highest in the country 's overseas investment is refreshed again in aluminum. Although the aluminum February 1, 2008 to $ 14.05 billion to buy 12% of Rio Tinto's UK shares, overseas investment of Chinese enterprises to become by far the biggest losses . Removal of other complex factors , no one can deny is spotted in the Rio Tinto aluminum is one of the world top three iron ore giants in this capacity , has been born out of the name , the aluminum risked losing his or solemn stake in Rio Tinto . The more outstanding performance , the more easily gather funds .

6 , the scale effect .

When production reaches or exceeds the breakeven point , that the formation of scale. Because there are no production costs generally include fixed and variable costs . To achieve profitability , we must make sales more than production costs, and fixed costs which are constant , so the production of more allocated to individual products less fixed costs , the more profit.

Since the reform and opening up three decades produced impressive scale , made ​​many contributions to society , Guangdong Hardware industry developed rapidly in recent years , metal forming tools , hardware , electrical hardware, stainless steel hardware , abrasives and other more complete hardware the industry sector, and the formation of a large number of unique industrial base , such as Zhongshan Xiaolan locks, Yangjiang tool. Zhongshan Xiaolan formed the locks, gas appliance as a leader, on the upstream and downstream products and all kinds of accessories complete the industry group. Guangdong Hardware City , Guangdong City Hardware Electrical Hardware City and other activities constitute a trade center , enrichment gather momentum , resulting in strong economies of scale , which provides a strong backing for the rapid development of Guangdong. Luo Baihui that the hardware industry experts , marketing and development of hardware companies need to take into account the scale and efficiency of scale for example, the PRD and the resulting formation is obvious , some large hardware companies should focus on economies of scale brought about value , which is the only way for the development of the hardware business .