With the end of China's "Eleventh Five-Year Plan" in 2010, China's economy has continued to develop at a rapid rate and it has become the world's second-largest economy. The rise of China’s economic status has created a good China’s hardware industry market environment. China’s hardware industry is playing an increasingly important role on the world stage. The Chinese hardware industry is making great strides from “Made in China” to “Created in China” and from “Extensive” to “Intensive”. This change has ushered in a new era in China's hardware industry: the brand era. At the same time, however, there is still a big gap between China's hardware companies and international hardware brands.
1. Technology
The design capabilities and level and processing methods of multinational hardware companies are higher than our hardware companies. Global hardware companies have advanced design reserves, and Chinese hardware companies lack both capital and technology. Most of the domestic hardware companies are mainly low-end products or OEM OEMs. High-end products and brand products are still controlled by international brands. Because the profit margins of hand tools are all being compressed, the space for price cuts is decreasing. It is difficult for enterprises to establish core competitiveness by price competition alone.
2. Brand
Although the domestic hardware companies' own brands have made great progress in recent years, the characteristics of the distribution of enterprises still have the characteristics of “South Industry and North Distribution”. The industrial bases mainly in Shanghai, Zhejiang, Guangdong, Jiangsu, and Fujian provinces, and the north-based distribution bases have formed the pattern of production and sales of domestic hardware companies. The influx of international hardware brands will undoubtedly have a huge impact on the domestic market. Foreign hardware companies that have entered China are internationally renowned multinational companies. They have good reputation and can provide users with quality products and perfect services.
3. Funds and Scale
At present, it is difficult for China's hardware manufacturers to get financing. Even if they can finance, the scale is very limited. Some even have to operate in debt, want to be close to the market, lack the ability to transform, and the products are all on the same level. Therefore, the development of enterprises is very difficult, often forced by helplessness and caught in a price war.
4. Internationalization of China and Internationalization of China
The demand for the Chinese market itself has been increasing. Many foreign companies have come to China to produce. What they value more is the Chinese market. Most of the Chinese hardware makers are based on the domestic market. However, the domestic market is undergoing changes. The traditional large commercial trade unions, trade associations, Hualian system, and the AC system are all economic associations, waste of resources, and high marketing costs. China's hardware exports account for only a few percent of the total amount. Expanding overseas markets is just the beginning. It is necessary to go global and lack the talents and trade experience of transnational elites. Similarly, after foreign companies enter China, they often have to adapt to the requirements of Chinese consumers, and often have to provide something new in order to be as effective as the huge market in China.
5. Management mechanism
Multinational corporations have established a modern enterprise system with clear property rights and are operational. Even if our traditional hardware manufacturing enterprises are listed, there may be a strange circle, that is, enterprises operating in a standardized manner also retain traces and imprints under traditional management mechanisms, because they are all born out of traditional mechanisms. . Such mechanisms and traces restrict the exertion of competitiveness.
With the fierce competition in the domestic hardware market, the competitors of China's hardware companies will not only be their domestic counterparts, but also the giants of international hardware brands. At the same time, however, we should also see that the internationalization of international brands still has a long way to go. The Chinese market is huge and there will be differences in consumer demand. Differences between China and foreign countries are also issues that must be faced