In 2010, the international winds were surging, the global financial crisis was still raging, exchange rates were smashing, and raw materials continued to rise. China's hardware surging, the domestic sales battle is strong, capital operations tend to be active, the rapid growth of the local hardware industry, hardware giants gradually clear. Luo Baihui, head of the International Die & Metals and Plastics Industry Suppliers Association, said that with the gradual improvement of the global financial market, the total amount of metal export in 2010 gradually recovered and basically recovered to the level before the world financial crisis in 2008. At the same time, affected by the global economic crisis and the pull of domestic demand, in 2010, many export-oriented hardware companies turned to the domestic market one after another. The proportion of domestic sales of hardware companies was significantly higher than in 2008 and 2009. According to incomplete statistics, before 2008, many hardware companies exported or domestically sold 8:2 or more. According to relevant statistics in the first half of 2010, the proportion of most hardware companies exporting and domestic sales reached 5:5 or even 7:3.
The 12th Five-Year Plan has higher requirements on the basis of the Eleventh Five-Year Plan. In recent years, the country has proposed the transition of industries to low-carbon environmental protection. However, how to make specific changes requires the industry and the enterprise to carry out in-depth thinking and deep-seated changes in light of their own conditions. Transformation is not a change of career, not from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, which is moving from the current situation to a higher level industrial model. In the recent period, the association has refined the five priorities of the Twelfth Five-Year Plan based on the status of completion in the Eleventh Five-Year Plan, the trend of the Twelfth Five-Year Plan, and combined with the state's requirements for industrial policy development and industry characteristics. This is the next five years. Hardware industry planning and promotion of the main direction.
The first is the transition from extensive to intensive.
In the 15 years of development of the Ninth, Fifteenth, and Eleventh Five-Year Plan, the nation's manufacturing industry has basically taken an extensive development path, including the hardware industry. However, at the time, private enterprises had just started and were in the initial stages of initial accumulation. In the beginning, there was bound to be a blind pursuit of profit maximization. High-pollution, low-level, repetitive labor, low-end product surpluses, and high-end product shortages have always been a problem. Accompanied by the growth of companies and industries. At the time, the unilateral pursuit of digital growth blindly caused a waste of resources and environmental destruction. This was not only a negative impact on the industry but on society as a whole, but now with the development of society, this growth model has already gone. To the end. Luo Baihui, head of the International Mould and Hardware and Plastics Industry Suppliers Association, said that the core of extensive transformation to intensive is to improve product processing capabilities, improve manufacturing equipment and processes, and enable product quality to meet the level of foreign products. In fact, at present, many OEM companies do not have poor product quality. However, because there is no brand and no sales channel, they are passive in the market. In the international market, China’s products are also encountering endless trade frictions and anti-dumping. Therefore, upgrading quality and creating its own brand, channel, and independent innovation capability have become imperative, and the shift 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 starts with industrial design and guides the increase in product technology content and added value. As far as the current situation is concerned, there are a wide variety of architectural hardware products, each with its own characteristics, and it is hoped that it will become more technologically intensive and there is still much room for improvement. As international high-end products continue to enter the domestic market, it will be difficult to increase the technological content in the future market. Now that the environment at home and abroad has undergone a very big change, companies are facing the pressure of technological upgrading, the high degree of foreign dependence, and the increasing pressure of trade friction. Therefore, it is proposed that labor-intensive and technology-intensive upgrades will be needed for the future development of the industry. Very necessary.
The third is the transformation of quantitative expansion into qualitative improvement.
The status quo of product homogenization and low level of repeated work in the industry has not yet been improved, but everyone has begun to realize this problem. We must realize the transition from a big producing country to a strong producing country. We must overcome the current situation of too many low-end products and high-end products. At the beginning we mentioned that the import value of construction hardware for this year was US$4.99 billion, an increase of nearly 30% year-on-year. It can be seen that the market equivalent to more than 300 billion yuan has been occupied by foreign brands. This aspect shows that consumers not only have high 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 quality improvement needs to be realized. Recently, the big brand Supor of the bedding industry has invested RMB 3 billion in Shenyang to build a sanitary industrial park, ready to enter the high-end sanitary ware market. The future will reach an annual output of 18 million sets of bathroom products, sales will reach 7 billion yuan***. This point is to see the status quo of the high-end products in the Chinese sanitary ware industry and prepare to take a share in the high-end market.
The fourth is low cost, low price, high value-added, and high profitability.
At present, the hardware industry still has the current situation of low-price competition among peers and disrupts the industry. This kind of competition is completely a kind of harm to the industry, and the final result can only be lost. The positive example is the hood industry. This product is an important product of the hardware industry. There has been no price war until now. The tradition of this industry has always been to carry out technological competition, starting with the connotation and added value of the product itself, to gain the favor of the market and maintain an orderly and healthy ecological environment for the industry. The leading companies in the hood industry are Fang Tai, Boss, and Shuaikang, and these new brands basically do not cut prices. After more than 10 years of development, the hood industry has maintained a healthy development trend, and has laid a solid foundation for future product and technology advancement. 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 striving to absorb and transform advanced technologies, we must start from various aspects and implement methods such as cost reduction plans and energy structure transformation to minimize waste, improve management levels, reduce unit costs, and increase the competitiveness of hardware products exports. The hardware industry must analyze its own price characteristics, increase the connotation of its own brand, and create and promote the establishment of sales channels. To do more efforts in brand promotion, market hardware. At present, the domestic market is very mature, and the quality and taste of consumers have also been raised. Therefore, taking root in the domestic market, especially the high-end market, we can grasp the initiative and not be afraid of the impact of the crisis. At present, production costs, living costs, and social costs are all increasing, and product prices are also under great pressure. How to adjust also requires companies to make detailed plans.
The fifth is based on the export of OEM-based self-owned brands.
Paying attention to the domestic market is not abandoning the international market. Walking on two legs means that the domestic and foreign markets are both concurrent and parallel. However, as a key enterprise in the industry, a company that wants to be a hundred-year-old shop can stop OEMs. OEMs always take orders, production, and delivery. They know nothing about the domestic market, standards, and trends. This industry model completely dependent on each other is actually very dangerous and passive. Once customers change, Businesses are likely to fall into a complete crisis. Therefore, if you want to continue to improve products, companies, and long-term development, you must grasp the initiative of the brand and embark on a solid road to independent brands. In addition, in foreign trade, the proportion of down payment for raising the contract is adopted to reduce the risk of exchange rate changes and prevent exchange losses. For example, if the contract down payment rate is increased from the previous 5% to 20% to 30% to 40%, the appreciation may also be stipulated in the contract. At the limit, if the limit is exceeded, the export price of the product will be adjusted accordingly. Luo Baihui suggested that enterprises could carry out **switching, return ***** in advance, and then convert it into USD**; use financial instruments to evade exchange rate risk, forward transactions, and lock forward exchange rate in advance; strive to use *** settlement in commodity trading .
The 12th Five-Year Plan has higher requirements on the basis of the Eleventh Five-Year Plan. In recent years, the country has proposed the transition of industries to low-carbon environmental protection. However, how to make specific changes requires the industry and the enterprise to carry out in-depth thinking and deep-seated changes in light of their own conditions. Transformation is not a change of career, not from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, which is moving from the current situation to a higher level industrial model. In the recent period, the association has refined the five priorities of the Twelfth Five-Year Plan based on the status of completion in the Eleventh Five-Year Plan, the trend of the Twelfth Five-Year Plan, and combined with the state's requirements for industrial policy development and industry characteristics. This is the next five years. Hardware industry planning and promotion of the main direction.
The first is the transition from extensive to intensive.
In the 15 years of development of the Ninth, Fifteenth, and Eleventh Five-Year Plan, the nation's manufacturing industry has basically taken an extensive development path, including the hardware industry. However, at the time, private enterprises had just started and were in the initial stages of initial accumulation. In the beginning, there was bound to be a blind pursuit of profit maximization. High-pollution, low-level, repetitive labor, low-end product surpluses, and high-end product shortages have always been a problem. Accompanied by the growth of companies and industries. At the time, the unilateral pursuit of digital growth blindly caused a waste of resources and environmental destruction. This was not only a negative impact on the industry but on society as a whole, but now with the development of society, this growth model has already gone. To the end. Luo Baihui, head of the International Mould and Hardware and Plastics Industry Suppliers Association, said that the core of extensive transformation to intensive is to improve product processing capabilities, improve manufacturing equipment and processes, and enable product quality to meet the level of foreign products. In fact, at present, many OEM companies do not have poor product quality. However, because there is no brand and no sales channel, they are passive in the market. In the international market, China’s products are also encountering endless trade frictions and anti-dumping. Therefore, upgrading quality and creating its own brand, channel, and independent innovation capability have become imperative, and the shift 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 starts with industrial design and guides the increase in product technology content and added value. As far as the current situation is concerned, there are a wide variety of architectural hardware products, each with its own characteristics, and it is hoped that it will become more technologically intensive and there is still much room for improvement. As international high-end products continue to enter the domestic market, it will be difficult to increase the technological content in the future market. Now that the environment at home and abroad has undergone a very big change, companies are facing the pressure of technological upgrading, the high degree of foreign dependence, and the increasing pressure of trade friction. Therefore, it is proposed that labor-intensive and technology-intensive upgrades will be needed for the future development of the industry. Very necessary.
The third is the transformation of quantitative expansion into qualitative improvement.
The status quo of product homogenization and low level of repeated work in the industry has not yet been improved, but everyone has begun to realize this problem. We must realize the transition from a big producing country to a strong producing country. We must overcome the current situation of too many low-end products and high-end products. At the beginning we mentioned that the import value of construction hardware for this year was US$4.99 billion, an increase of nearly 30% year-on-year. It can be seen that the market equivalent to more than 300 billion yuan has been occupied by foreign brands. This aspect shows that consumers not only have high 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 quality improvement needs to be realized. Recently, the big brand Supor of the bedding industry has invested RMB 3 billion in Shenyang to build a sanitary industrial park, ready to enter the high-end sanitary ware market. The future will reach an annual output of 18 million sets of bathroom products, sales will reach 7 billion yuan***. This point is to see the status quo of the high-end products in the Chinese sanitary ware industry and prepare to take a share in the high-end market.
The fourth is low cost, low price, high value-added, and high profitability.
At present, the hardware industry still has the current situation of low-price competition among peers and disrupts the industry. This kind of competition is completely a kind of harm to the industry, and the final result can only be lost. The positive example is the hood industry. This product is an important product of the hardware industry. There has been no price war until now. The tradition of this industry has always been to carry out technological competition, starting with the connotation and added value of the product itself, to gain the favor of the market and maintain an orderly and healthy ecological environment for the industry. The leading companies in the hood industry are Fang Tai, Boss, and Shuaikang, and these new brands basically do not cut prices. After more than 10 years of development, the hood industry has maintained a healthy development trend, and has laid a solid foundation for future product and technology advancement. 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 striving to absorb and transform advanced technologies, we must start from various aspects and implement methods such as cost reduction plans and energy structure transformation to minimize waste, improve management levels, reduce unit costs, and increase the competitiveness of hardware products exports. The hardware industry must analyze its own price characteristics, increase the connotation of its own brand, and create and promote the establishment of sales channels. To do more efforts in brand promotion, market hardware. At present, the domestic market is very mature, and the quality and taste of consumers have also been raised. Therefore, taking root in the domestic market, especially the high-end market, we can grasp the initiative and not be afraid of the impact of the crisis. At present, production costs, living costs, and social costs are all increasing, and product prices are also under great pressure. How to adjust also requires companies to make detailed plans.
The fifth is based on the export of OEM-based self-owned brands.
Paying attention to the domestic market is not abandoning the international market. Walking on two legs means that the domestic and foreign markets are both concurrent and parallel. However, as a key enterprise in the industry, a company that wants to be a hundred-year-old shop can stop OEMs. OEMs always take orders, production, and delivery. They know nothing about the domestic market, standards, and trends. This industry model completely dependent on each other is actually very dangerous and passive. Once customers change, Businesses are likely to fall into a complete crisis. Therefore, if you want to continue to improve products, companies, and long-term development, you must grasp the initiative of the brand and embark on a solid road to independent brands. In addition, in foreign trade, the proportion of down payment for raising the contract is adopted to reduce the risk of exchange rate changes and prevent exchange losses. For example, if the contract down payment rate is increased from the previous 5% to 20% to 30% to 40%, the appreciation may also be stipulated in the contract. At the limit, if the limit is exceeded, the export price of the product will be adjusted accordingly. Luo Baihui suggested that enterprises could carry out **switching, return ***** in advance, and then convert it into USD**; use financial instruments to evade exchange rate risk, forward transactions, and lock forward exchange rate in advance; strive to use *** settlement in commodity trading .