In 2010, the international winds were surging, the global financial crisis was not scattered, the exchange rate was pressing harder, and raw materials continued to rise. The undercurrent of China's hardware is surging, the domestic sales battle is full of smoke, the capital operation is becoming more active, the local hardware industry is growing rapidly, and the hardware giant is gradually becoming clear. Luo Baihui, head of the International Association of Mould & Hardware Plastics Industry Suppliers, said that in the premise of the global financial market gradually improving, the total hardware export sales in 2010 gradually recovered, basically returning to the pre-World Financial Crisis level in 2008. At the same time, affected by the global economic crisis and the impact of domestic demand, in 2010, many export-oriented hardware companies fought in the domestic market, and the proportion of domestic sales of hardware enterprises was significantly enhanced compared with 2008 and 2009. According to incomplete statistics, before 2008, the proportion of export and domestic sales of many hardware companies reached 8:2 or even more. According to relevant statistics in the first half of 2010, the proportion of export and domestic sales of most hardware enterprises reached 5:5 or even 7:3. The 12th Five-Year Plan has higher requirements on the basis of the 11th Five-Year Plan. In recent years, the state has proposed to transform the industry into a low-carbon environment, but how to change it specifically requires the industry and enterprises to conduct in-depth thinking and deep-seated changes in light of their own conditions. Transformation is not a change, not from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, moving from the current situation to a higher-level industrial model. In recent times, according to the completion status of the 11th Five-Year Plan and the trend of the 12th Five-Year Plan and the requirements of the state's industrial policy development and industry characteristics, the Association has extracted five key points of the 12th Five-Year Plan. This is the next five years. The main direction of hardware industry planning and upgrading.
The first is the transition from extensive to intensive. In the 15 years of development of the Ninth Five-Year, Five-Year, and Eleventh Five-Year Plan, the manufacturing industry across the country has basically taken an extensive development path, including the hardware industry. However, at that time, private enterprises had just started, and they were in the early stage of primitive accumulation. At the beginning, there must be a blind pursuit of profit maximization. High pollution, low levels, repeated labor, low-end products, and high-end products have been the drawbacks. With the growth of business and industry. At that time, the pursuit of one-sidedness in digital growth caused a waste of resources and environmental damage. This not only had a negative impact on the industry but on the whole society. Nowadays, with the development and progress of society, this growth model has already taken place. At the end. Luo Baihui, head of the International Association of Mould & Hardware Plastics Industry Suppliers, said that the core of the extensive transformation to intensive development is to improve product processing capabilities, improve manufacturing equipment and processes, and achieve product quality that can compete with foreign products. In fact, many OEM companies currently have poor product quality, but because there is no brand and no sales channels, they are passive in the market. In the international market, Chinese products are also endlessly encountering trade frictions and anti-dumping. Therefore, improving quality, creating their own brands, channels, and independent innovation capabilities has become a top priority, and the transition from extensive to intensive is imminent.
The second transformation is from labor-intensive industries to technology-intensive industries. The faucet industrial design competition announced at the China International Hardware Show in September this year started with industrial design and guided the increase of technical content and added value. As far as the current situation is concerned, there are many varieties of architectural hardware products, each with its own characteristics, and it is necessary to move towards technology intensiveness, and there is still much room for improvement. In the case that international high-end products continue to enter the domestic market, it will be difficult to improve the technical content in the future market. At present, the environment at home and abroad has undergone a very big change. Enterprises are facing the pressure of technological upgrading, the dependence on foreign countries is too high, and the pressure on trade friction is increasing. Therefore, it is proposed to increase from labor-intensive to technology-intensive and to the future development of the industry. Very necessary.
The third is the shift in the expansion of quantity toward qualitative improvement. At present, the status quo of product homogenization and low-level repetitive labor in the industry has not improved, but everyone has begun to realize this problem. In order to realize the transition from a large producing country to a strong producing country, we must overcome the current situation of too many low-end products and insufficient high-end products. At the beginning we mentioned that the import value of construction hardware this year was 4.99 billion US dollars, an increase of nearly 30%. It can be seen that the market equivalent to more than 30 billion yuan has been occupied by foreign brands. This aspect shows that consumers not only have demand for high-end products, but also increase year by year. On the other hand, it also shows that domestic brands are not enough to meet the needs of this part of the market, and the quality improvement needs to be realized. Recently, Supor, a major brand in the cookware industry, has invested 3 billion yuan in Shenyang to build a sanitary industry park, ready to enter the high-end bathroom market. In the future, it will reach 18 million sets of sanitary products with annual sales of 7 billion yuan. This point is to see the current situation of the lack of high-end products in the Chinese sanitary ware industry, ready to take a share in the high-end market.
The fourth is low cost, low price, high value-added, and high profit margin. At present, the hardware industry still has low-cost competition among peers and disrupts the status quo of the industry. This kind of competition is completely a kind of harm to the industry, and the final result can only be both loses. A positive example is the range hood industry, which is an important product in the hardware industry and has not been subjected to price wars until now. The tradition of this industry has always been to compete in technology, starting from the connotation and added value of the product itself to gain market favor and maintain an orderly and healthy ecological environment. The leading companies in the range hood industry are Fangtai, Boss and Shuaikang. The new products of these brands basically do not cut prices. After more than 10 years of development, the range hood industry has maintained a benign development trend and laid a solid foundation for future product and technology upgrades. Luo Baihui said that hardware companies should pay attention to product structure adjustment and vigorously develop the production and sales of high-tech and high value-added hardware products. At the same time, under the premise of absorbing and transforming advanced technologies, we will start from various aspects and implement waste reduction plans and energy structure reforms to reduce waste as much as possible, improve management level and reduce unit cost, and improve the export competitiveness of hardware products. The hardware industry should analyze its own price characteristics, increase its own brand connotation, create and promote the establishment of sales channels, and cannot be a solid hollow enterprise. It is necessary to make more efforts in brand promotion and market hardware. At present, the domestic market is very mature, and the quality and taste of consumers have also improved. Therefore, rooted in the domestic market, especially in the high-end market, it is able to grasp the initiative and is not afraid of the impact of the crisis. At present, production costs, living costs, and social costs are increasing, and product prices are also facing great pressure. How to adjust also requires companies to make detailed planning.
The fifth is to export OEMs to the main brands. Paying attention to the domestic market is not abandoning the international market. Walking on two legs means that both domestic and foreign markets are equal and parallel. However, as a key enterprise in the industry, OEMs can stop doing business that wants to be a century-old company. OEMs are always on the order, production and delivery. They know nothing about the domestic market, standards and trends. This kind of industry model that is completely dependent on each other is actually very dangerous and passive. Once the customer changes, Enterprises are likely to fall into a comprehensive crisis. Therefore, in order to continuously improve products, enterprises, and long-term development, we must master the initiative of the brand and embark on a solid road of independent brands. In addition, in the foreign trade, increase the proportion of down payment of the contract to reduce the risk of exchange rate fluctuations and prevent exchange losses, such as the signing of the contract down payment rate from the previous 5%-20% to 30%-40%; can also be agreed in the contract The limit, if it exceeds the limit value, adjusts the product export price accordingly to respond. Luo Baihui suggested that enterprises can switch loans, return RMB loans in advance, and then exchange them into US dollar loans; use financial instruments to avoid exchange rate risks, forward transactions, lock forward forward exchange rates in advance; and strive to settle in RMB in commodity transactions.
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