Current profit hardware companies are gradually reduced, first, because the industry overcapacity, oversupply; on the other hand is the homogenization of products flooding the market, the lack of high value-added, high-end products of human design. 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, before is in short supply, and now has gradually become an oversupply, industry overcapacity problem. International Association Secretary-General Luo Baihui mold that the current development of the industry is tending to the scale and diversity, to seek sustainable development, industrial transformation and upgrading, increase technology investment and improve product quality has become inevitable. At present, China's hardware industry presents large-scale and diversified development, bid farewell to the past, rapid growth, an oversupply situation. It is understood that China's large hardware market is mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong and Shandong provinces. Mechanical and electrical hardware such as Zhejiang Yongkang production cluster, Shandong Linyi hardware market, Hangzhou New Century Lock Market, Shanghai Hardware & Electrical Trade City, Chengdu House Hardware & Electrical City, Guangdong Guang 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, our country has gradually become one of the world's hardware products processing and exporting country. Expected to 2013, China's exports of hardware and other related products to maintain growth of about 10%. Luo Hui said that the construction of the National Hardware professional market over the country, has been basically formed Origin type and circulation type, large and small and medium sized, integrated with a single type with a reasonable, mutually reinforcing pattern. Tianjin hardware market, for example, the International Hardware & Electrical City of Tianjin, the new South Road, Hardware City, north of the city and the Pearl River 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 Hardware Business owner, is also well-known brands will be fully introduced Tianjin market, one of northern China's largest wholesale hardware industry base formation. Luo Baihui that the hardware industry has bid farewell to 10 years of rapid development, along with related businesses compete in depth, hardware industrial 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 aspects. Insiders said that a few years ago about 20% of the profits as well as the majority of SMEs, and now the profit has fallen below 10%. Looking at China in the hardware business, the majority of the production parts mainly, the lack of independent brands, serious homogenization of competition, many companies lack the bargaining power at high CPI, the RMB exchange rate and high cost of the environment, are increasingly facing pressure greater. 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 the new changes in China's exports face metal products, will be the growth of exports of high-tech products, the original low value-added metal products will be a group with a high value-added exports of high-tech products to replace. Luo Baihui that if they want 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 is to strengthen its management, enterprise regardless of size, have to get rid of extensive development mode.