Shenzhen hardware industry's profit margins tend to tighten

Following the deepening of competition, the author learned that the profit margins in all stages of the hardware industry chain are shrinking, and more and more Shenzhen companies have come to the view that price competition alone cannot establish the center's competitiveness. To this end, many hardware companies in Shenzhen have increased their investment in technology, actively launched self-innovation, opened up new products with high technological content, differentiated the product as a durable measure for the company, and pursued new market demands. The new economic growth point to complete the enterprise can continue to carry out. At present, Ji Zhirong, Jin Guhong, Kang Yi CNC, Cheng Lin Sanitary Ware, and Risheng Hardware are among a number of advantaged brand companies, and their own influence is expanding from time to time.

From time to time for all walks of life quietly as "support role" hardware industry, Shenzhen Hardware Industry Chamber of Commerce released information display. In recent years, the industrial output completed for Shenzhen every year has been over 100 billion yuan, and it has reached 150 billion yuan in the previous year. According to industry sources, following the opening of the short-term platform and increasing pressure from market competition, the Shenzhen hardware industry will usher in a period of transition and advancement.

A total of 162,000 companies have been involved in the manufacturing industry and are the main components of the manufacturing industry. According to Dai Xiuhua, secretary-general of Shenzhen Hardware Industry Chamber of Commerce, the hardware industry as an accessory industry is not very inconspicuous. After more than 30 years of development, Shenzhen hardware industry ranks first in the industry in terms of industry scale, industry influence and product technology content. At present, the hardware industry in Shenzhen has started from the initial stage of the establishment of the special zone, with daily hardware, building hardware and metal processing accessories as the main categories of industry, to carry out mechanical hardware, tool hardware, precision molds, fine hardware and electronic tools, and many other categories. The types of industrial formats, production and operations are also historically low-value-added methods for processing materials and single businesses, and have changed from high-value-added production and operation forms such as self-reliant research and development and self-supporting brands. At present, the city's hardware industry, a total of about 16200 manufacturing enterprises, mainly scattered in Baoan, Longgang two districts, the previous year the city's hardware industry to complete the total industrial output value of about 150 billion yuan.

With the characteristics of many types of industry, miscellaneous, fine and low entry barriers, the hardware industry as a supporting manufacturing industry. This decided that the majority of SMEs in the industry. At present, SMEs in the Shenzhen regional hardware industry account for more than 99.6% of the total number of enterprises. Enterprises with a middle-aged sales income of less than 30 million yuan account for 81.3% of the total number of industries; enterprises with an annual sales income of over 300 million yuan account for only 1.3% of the total number of enterprises in the industry; enterprises with an annual sales income of over 500 million yuan only account for industry enterprises. 0.2% of the total. The Shenzhen hardware industry market is dominated by the domestic market and the direct export market, supplemented by the direct import market, accounting for 72.6% and 27.4% of the total. The entrance is mainly concentrated in the product categories such as kitchen and bathroom hardware, tools and micro-motors, while the domestic market is dominated by traditional daily use, construction hardware, hardware waste, electronic tools and other product categories; the direct import market is mainly fine molds, hardware accessories, Tool equipment and other product categories.

Short-term support for the platform but the Shenzhen hardware industry is dominated by small businesses, although the total output value is considerable. The scale and strength are generally weak. Most companies do not have their own brands, and their risk resistance is relatively poor. Many companies face difficulties in their operations. Shen Jianfeng, president of the Shenzhen Hardware Industry Chamber of Commerce, disclosed that the Shenzhen hardware industry is an affiliated location in the market, and that most of them are processing-oriented enterprises. Their technological innovation talents and brand building ability are generally weak. Land, land, and employment are the three most common problems faced by companies in the industry.

The Shenzhen Hardware Industry Chamber of Commerce, in conjunction with Shenzhen China National Aviation Group, established Shenzhen China Airlines Microfinance Co., Ltd. to deal with the hardware problems faced by the hardware industry. Open up new service platforms for member companies in the short term. This small-scale borrowing company in the sense of Shenzhen's first industry opened in February this year and has a total asset of 27 billion yuan. Currently, it has issued a total of 6 member companies, including Jiatong, Yuanyongfeng, and Bump Hardware, with preferential interest rates. 15.6 million yuan borrowing to solve the urgent needs of member companies. According to Shen Jianfeng, due to relatively familiarity with the industry, the small-sum borrowing company is also relatively relaxed on the precondition of borrowing. Member companies can also real-timely cover 600,000 to 2.5 million yuan in equipment or inventory.

The industry is expected to show that the giant will be the high-speed vibration period of the hardware industry in the next few years, Dai Xiuhua revealed performance. The polarization between the North and South Polaris has intensified, and the industry is expected to present some “giant” type large-scale hardware companies. Those potential hardware companies, in order to improve their own strength and expand the international market faster, will accelerate the integration of foreign companies with various tricks to improve the quality of products and improve their competitiveness, and continue to expand the traditional markets of the United States and Japan. Southeast Asia, the Middle East, Russia, Europe, and Africa will also blossom. "Overall, the national hardware industry will continue to maintain the momentum of structural adjustment, but it will also show some bright spots from time to time. Some companies that do not comply with market competition will gradually withdraw from market competition, and hardware giants will surface. Shenzhen hardware industry has With a very good foundation, the relevant departments should develop a better supporting platform for the hardware industry to compete for a large number of large-scale hardware companies in Shenzhen that have a significant influence on the industry and have considerable brand awareness.”