Current profits hardware companies are gradually reduced, first, because the industry overcapacity, oversupply in the market; on the other hand is the homogenization of products flooding the market, the lack of high value-added, high-end products of human design. Insiders said that the future trend of China's exports of metal products, high value-added products will be replaced by low-value-added products. In recent years, the development pattern of China's hardware industry is quietly changing, is in short supply until now has gradually become an oversupply, industry overcapacity problem. Meanwhile, the industry pointed out that the current positive trend of development of the industry scale and diversity, to seek sustainable development, industrial transformation and upgrading, increase technology investment and improve product quality will become inevitable. Overcapacity From China CCCME (referred to CCCME) learned that the current China's hardware industry has the scale and diversified development, bid farewell to the previous rapid growth, oversupply situation. It is understood that China's large hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces. Such as Zhejiang Yongkang Hardware & Electrical production cluster, Shandong Linyi hardware market, Hangzhou New Century lock market, Shanghai Hardware & Electrical = Trade City, Chengdu Golden Palace Hardware & Electrical City, Guangdong, Guangzhou and Foshan Hardware & Electrical City. At present, China's household hardware products industry has entered the world. Relevant information, in recent years, China has established a zipper, electric shaving, stainless steel utensils, pots, blade, bike locks, 14 technology development center, as well as a pressure cooker, electric shaving devices, lighters and other 16 Products . At the same time, China is also becoming one of the world's hardware products processing and exporting power. By 2013, China's exports of hardware and other related products to maintain growth of about 10%. Electrical Association learned from building hardware professional markets across the country, has been basically formed the origin and flow-type, large and small and medium sized, integrated with a single type with a reasonable and mutually reinforcing pattern. Tianjin hardware market, for example, the International Hardware & Electrical City of Tianjin, the new South Road, Hardware City, Pearl City and northern Hardware Hardware Hardware City of the four professional market, with annual sales of more than 20 billion yuan in total. These four market diversification effects not only gathered more than 60 percent of Tianjin's hardware business operators, but also well-known brands will be fully introduced in Tianjin market, one of northern China's largest wholesale base metal forming industry. Increase technology investment is the key According to industry sources, the hardware industry has bid farewell to the 10-year period of rapid development, with the associated competitive depth, metal chain profit margins were compressed each stage, the price is decreasing. Meanwhile, the international market for our products, hardware requirements are gradually changing, the quality, packaging, delivery deadline of hardware products have higher requirements, even gradually extended to the production process and product development cycle. Insiders said that a few years ago about 20% of the profits as well as most SMEs, and now the profit has dropped below 10%. Looking at China in the hardware business, the majority of production parts mainly, the lack of independent brands, serious homogenization of competition, many companies lack the bargaining power in the high CPI, the RMB exchange rate and high cost of the environment, are increasingly facing pressure bigger. In this case, the transformation and upgrading has become an inevitable trend of future development of the industry. Industry insiders estimate that in the future new hardware exports face changes in China, will be the growth of high-tech products export volume, the original low value-added metal products will be a group with a high value-added exports of high-tech products to replace. Experts said that companies wishing to win in the competition, we must do the following three things: First, to ensure the quality of the product, which is the lifeblood of business; second is a clear consumer demand, has developed its own characteristics to meet consumer demand products; Third, strengthen their management, enterprise regardless of size, must get rid of the extensive mode of development.

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