Analysis of Hardware Business Operation Depth and Market Development Prospects in 2012

Combining the hardware industry's 30 years of development experience and achievements, we can conclude that its core competitiveness factors include product competitiveness, information and industrial integration, brand building, corporate culture cultivation, and the establishment of a rational and orderly industry 'ecological environment' It consists of 5 aspects.

The development of any thing has its own development law. The hardware market is no exception. The development of China's hardware market has benefited from the development of China's economy first. Thanks to the rapid development of China's hardware industry, everyone is very clear that China's hardware Manufacturing industry is already the manufacturing base of the world's hardware industry. The 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. This market situation has laid a foundation for the development of the national hardware market, but In terms of a specific hardware market, Luo Baihui believes that it is indispensable to do the following three tasks in order to become bigger and stronger.

First, adopting a differentiated business strategy, “branch-making at the branch”, market segmentation, and making it a professional and large-scale market are the primary guarantees for market prosperity.

Take the Hardware City of North China as an example. At the beginning of the market, the hardware market of Tianjin was dominated by the old Nanma Road Hardware City before 2005. Due to historical factors, it was located in the downtown busy area. We considered hardware according to the characteristics of the hardware market. The market is unlikely to remain in the heart of the city for a long period of time. After inspecting the overall city plan of Tianjin, the site is located near the outer ring road and the land along the 205 national road. The market area can be radiated to Tianjin downtown, surrounding districts and counties, and the coastal area. The new district can be used to radiate Beijing, the three eastern provinces, Hebei Province and other places and is the first choice for the market.

However, as the emerging hardware city and the old city form a complementary relationship and gradually expand itself, we have chosen a complementary complementary strategy. In 2006, we began to make 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 west of a 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 were basically formed.

The hardware industry is all-encompassing, with many types of products, 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 in size, it cannot accommodate all hardware products and must be based on Within the range 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, and target 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, the vast majority 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 approach was to sell shops to dispersed owners. The market management company and the owners immediately signed the entrusted operation contract, which provided the owner with stable rental income as a reward. The entrusted operation period should be more than five years. The unified entrusted operation first ensured that unified marketing planning was possible for different areas of the market. At the beginning of investment promotion, it is possible to conduct unified investment promotion according to the market's business model. While avoiding the phenomenon of “mixed business chaos”, it also promotes the formation of economies of scale, making different functional areas bigger and stronger, and forming professional market advantages. And scale effect. 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 uniform entrusted operation, the management company should preferably retain more than 40% of its business area, and within two years of launching 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 to leverage the rent policy during the development of the market.

Third, strong brands are the core competitiveness of the market

In the market environment where modern commodity types and quality converge, the essence of competition is brand competition. How to form a strong brand is a must for every company and every hardware market. The formation of a strong brand includes two aspects. It is the brand's broad awareness and on the one 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. One is the brand of the hardware market itself. For example, the brand “North China Hardware City” written by Wu Lao’s inscription, when many foreign customers in Tianjin bought the business outlets, they said that we It is the atmosphere of the name of your hardware city. The other is the popularity of the manufacturers and products operating in the city. The brand of the hardware market needs the management company to widely publicize through various advertising media and marketing activities. It also needs the merchants in the city. Uninterrupted promotion, forming a household name. 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, which led to the emergence of 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 the brand through the ad's advertising awareness of the brand is the premise of the formation of 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 subdivided hardware and market advantages, and scale advantages, such as the professional wholesale base for plastic pipe valves that is currently being developed by China North Hardware City. 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, it was known to the vast number of buyers in Tianjin City and formed a good reputation for “buying pipeline valves 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, and there is still a big gap compared with the hardware products of developed countries such as Germany, South Korea and the United States. We are international 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 for processing 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 well-known brands in the world. 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 market competition environment. In this regard, Yongkang China Hardware City is at the forefront. We also organized several companies to participate 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 Tianjin’s advantages in internationalized ports to guide the development of the hardware industry to middle and high-end brands and form some national brands of hardware products. , making it a modern, professional, international hardware logistics headquarters base.

Continuously enhancing and enhancing core competitiveness is still a problem that China's hardware industry needs to face and solve for a long time to come. At present, although China's hardware products industry has nearly 400 standards, but some of them have not adapted to the rapid development of the industry requirements, must be revised in conjunction with the actual, in order to achieve the purpose of regulating and leading the industry for sound development, so as to comprehensively improve the product Quality level. In the industrial cluster construction, there are 42 large-scale clusters in the entire industry. They do not need to vigorously carry out independent innovation activities to accelerate the pace of upgrading and upgrading, so as to achieve high quality, high standards and high efficiency in the hardware industry. In recent years, the occurrence of the international financial crisis has made it increasingly important to construct an analysis system that comprehensively reflects the economic operation of the industry and an industrial damage warning mechanism. It can not only reduce and avoid unnecessary losses of industries and enterprises, but also Can establish a good brand image of Chinese hardware products.