Pressure inside and outside the market to test the competitiveness of China's construction hardware industry

Summary China National Hardware Association Zhang Dongli concluded recently in 2012 when the development status of China's construction industry, hardware industry development trend and forecast for this year, present, China's architectural hardware industry is facing two major challenges: First, re-industrialization of developed countries, Ie they put...
Zhang Dongli, chairman of the China Hardware Products Association, recently summarized the development status of China's construction hardware industry in 2012 and predicted the development trend of the industry this year. At present, China's construction hardware industry is facing two major challenges:

First, the re-industrialization of developed countries, that is, they transfer the low-end manufacturing links originally transferred to China to other countries, so that domestic orders are reduced;

Second, since 2007, the comprehensive costs of domestic labor, raw materials and environmental protection have risen sharply year by year, reducing the cost advantage and even competitiveness of the manufacturing industry. Only by relying on technological innovation, quality improvement, efficiency improvement, brand cultivation, and channel construction, that is, to enhance the comprehensive competitiveness of the entire industry, can this challenge be met. In order to win the market, you must practice a combination of punches.

According to customs statistics, in the first three quarters of 2012, China’s construction hardware products represented by nails, wires, nets, valves, faucets, pipe joints, door and window fittings, and slide rails earned US$24.538 billion in exports, an increase of 10.01 over the same period last year. %.

This shows that the demand for construction hardware in the international market tends to improve, and it also reflects that China's construction hardware industry has a strong comparative advantage in export competitiveness. In the same period, China's imports of construction hardware products reached US$9.08 billion, down 3.1% year-on-year.

This not only indicates that the domestic market macro-control, especially real estate regulation and control, has reduced the import demand for construction hardware products, and also reflects the fact that domestic enterprises have made a certain degree of progress in replacing imports.

Zhang Dongli said that China's construction hardware industry is the beneficiary of globalization. Based on the global division of labor and industrial transfer, it has achieved sustained and rapid development for nearly 20 years, but the division of labor and industrial transfer formed by this round of globalization is dominated by multinational companies.

Since multinational corporations control the manufacturing industry's industrial chain, supply chain and value chain, they have always controlled R&D, design, brand and channel, and firmly grasped the two ends of the smile curve.

Domestic companies are always at the bottom of the smile curve of processing and manufacturing. If we do not try to change this situation, and the financial crisis has forced the developed countries to carry out structural adjustment and re-industrialization, China's construction hardware industry will still be subject to long-term constraints.

How to get out of the development dilemma? Zhang Dongli believes that this requires construction hardware manufacturers to accelerate the pace of development of transformation and upgrading, and adhere to the development strategy of both domestic and international markets.

On the one hand, further enhance R&D and design capabilities, continuously improve the quality of export products, and enhance international competitiveness; on the other hand, further emphasize and strengthen the integration of industrialization and informationization, use information technology to improve production methods, strengthen channels and brand building, and raise standards. Level, continuous research and development to design a good product to meet the needs of domestic consumers, and provide good service.

Zhang Dongli also stressed that China’s goal of doubling GDP, doubling per capita income in urban and rural areas, building a well-off society in an all-round way and promoting new urbanization by 2020 will definitely bring rare opportunities to the construction hardware industry. .

According to estimates by relevant authorities, if the above objectives are achieved, it will create a domestic market demand of 64 trillion yuan; and for every one percentage point increase in urbanization rate, it can drive more than 100 billion yuan of consumption. The expansion of domestic demand will definitely drive industry and consumption upgrades.

Therefore, enterprises must be willing to continue to invest in brand cultivation, channel construction and labor productivity in the domestic market.

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