Analysis on the Problems in the Development of Wenzhou Hardware Industry in 2012

The advantages of China's hardware and sanitary ware are still in the hardware industry, Wenzhou's locks, sanitary ware, molds and fasteners known at home and abroad, Wenzhou hardware has formed an industrial cluster to achieve a qualitative leap. The vast majority of companies in the Wenzhou hardware and sanitary ware industry are concentrated in the Haicheng area of ​​Longwan District. The hardware and sanitary ware are the traditional industries in Longwan Haicheng. The Wenzhou hardware and sanitary wares industry rose in the 70s of the last century, when nearly every household in Haicheng was engaged in the production, processing and sales of sanitary ware. This is the earliest home-plant-style sanitary ware company. Afterwards, Sanitary Ware companies in Haicheng spring up like mushrooms. Large enterprises bring small businesses and small businesses to bring home workshops. After more than 30 years of development, almost every household in Haicheng is doing business with hardware and cleanliness. Haicheng Hardware & Sanitary Ware Co., Ltd. has developed from the initial family workshop production to the current corporatization and grouping large-scale production and operation pattern, and has maintained a good development trend.

In 2004, Longwan Haicheng was named the capital of China's hardware and sanitary ware. The production volume and sales volume of Longwan District Sanitary Ware Industry accounted for 55% and 52% of the total production base of all hardware wares in China, and the product group ranks first in the country. A large number of sanitary ware manufacturers settled in Haicheng, making the overall scale and agglomeration effect of the sanitary ware industry increasingly apparent, and the division of labor in the industry has also been continuously refined. At present, Longwan Hardware Sanitary Ware Industry has formed the nation's leading marketing market, and the advantages of industrial clusters have further manifested itself.

First, the industry's shortcomings have highlighted the fact that companies have been struggling with the rapid development of the hardware and sanitary ware industry in Longwan District, Wenzhou City, while the problems in the industry have also become increasingly apparent. The small, scattered and chaotic phenomenon of enterprises, the backwardness of production equipment and casting technology, and the frequent infringement of trademarks for foreign companies, which have severely restricted the further development of the hardware and sanitary ware industry in Longwan District.

In the long-term contact with Wenzhou's numerous hardware and sanitary ware companies, it has been learned that most companies suffer from the after-effects of the international financial crisis, the European debt crisis, and warm running. The symptoms are gradually emerging. Since last year, with the rising prices of raw materials and the continuous expansion of the consumer market, the market competition in the hardware and sanitary ware industry has become more intense, and the industry's drawbacks have become more prominent. High-middle and low-end products are uneven, product expansion is incomplete, and segmentation advantages are ignored. This is the three major drawbacks that currently exist in the Wenzhou bathroom hardware industry.

1, brand positioning varies.

The current widespread phenomenon in the domestic sanitary hardware industry is that a company often launches brands with multiple grades, such as high school, low school, etc., but they do not have the confidence, patience, and ability to do a good job. In view of the current status quo, experts have called for: The domestic bathroom hardware companies have come to the time of reluctantly love, and can no longer hope to rely on the number of siege to win the psychological. It is understood that Wrigley and other domestic first-line brands have begun to establish a scientific, accurate, and specific brand strategic planning and positioning, is committed to creating unique products and strong brands that not only meet the needs of the domestic market, can enter the international market. Insiders pointed out that the bathroom hardware companies must be firmly and uniformly implemented, and the brand will become a strong brand in the industry, able to compete with other international brands and compete.

2, the product expansion is too rampant.

At present, many domestic bathroom hardware companies generally have a large market for greediness and expansion. One of the main reasons for this trend is that the owners and employees of bathroom hardware companies, especially the marketing personnel, have advocated and expanded; second, professional managers People do not agree that the product variety is overdone, but the person in charge thinks it is necessary, and the company is the boss has the final say; Third, a company often has 2 to 3 brands, many companies implement each brand is managed by different professional managers The brand competition within the company also caused the internal product variety of the company to expand.

3, the market segmentation advantage is ignored.

At present, China's sanitary hardware companies and brands, especially the large number of small and medium-sized sanitary hardware companies and brands, in order to gain a foothold in the market, only select one of the most promising roads, give full play to their advantages, specifically Go on, deepen and specialize it, and let it go.

This width is to broaden the length of a road, subdivide it in terms of form, and subdivide it in terms of specifications. At the same time, according to the customer's habits and aesthetic requirements, innovative design, in terms of technology, materials, appearance, technology, services, etc. Comprehensively promote the small market to do special width.

In the current situation, despite the serious decline in the profits of sanitary hardware companies, professional products will still be the company's goal. Enterprises can't be tricks on products because of falling profits, otherwise it will lead to narrower and narrower roads for corporate development. Product exports have always been a good thing. However, since this year, the owners of Haiba Sanitary Ware's Qiu Jianchun, general manager of Texaco Sanitary Ware Chen Sijun, and Aolong Sanitary Ware Company's Zhang Tianyou have been worried about the economic downturn in Europe and the United States, and the instability of international trade, resulting in a significant reduction in the export orders of these enterprises. The long-standing price war in the Wenzhou hardware and sanitary wares industry has seriously affected the reputation of the industry.

Under the circumstance of unstable international trade, Wenzhou's product export inspection has encountered many difficulties. Even more frightening is that Wenzhou Sanitary Ware products are likely to encounter trade barriers in the international market. A large part of Wenzhou hardware and sanitary ware companies are family-run enterprises. These small enterprises generally rent private houses for production and win a little market by playing a price war. However, with the rectification of illegal buildings in urban areas in Wenzhou last year, more and more houses have been demolished. Many small businesses that previously rented residential buildings did not have production sites, and some small enterprises were forced to close their doors.

Second, the combination of strong and strong, the industry structure or will be big reshuffle found in the survey, Wenzhou disappeared since last year, nearly 100 hardware and ware small businesses, most of them have been integrated into the larger companies. Big fish eat small fish, fast fish eat slow fish, which is also in line with the industry competition rules for survival of the fittest. In fact, from the beginning of last year to the present, China's bathroom hardware companies continue to attract people's attention. Overseas listings, joint exhibitions, strong alliances and other news emerge in an endless stream, which shows that the branding of the bathroom hardware industry has been carried out in a grand manner. It can be predicted that China's sanitary hardware industry will enter the oligarchic era in the next decade, and a group of leading enterprises will occupy a larger market share in the industry and become a well-deserved leader in the industry.

The cooperation between domestic companies and foreign well-known brands, cooperation between manufacturers and stores, strategic cooperation between enterprises and media, cross-industry cooperation, etc., regardless of the form of alliance, its ultimate goal is to develop a broader market. The alliance between the strong and the strong will become more and more common. Take the old road only one way to death, Wenzhou's bathroom hardware industry must go out of a new path! The owner of a sanitary ware company in Wenzhou said that companies should guide and support the government and industry associations to integrate industry resources and achieve industrial transformation and upgrading. He emphasized that Wenzhou's hardware and sanitary ware companies have come to the stage of reluctantly cutting off their love. It is no longer possible to rely on quantity and low price to besiege and win the psychology. They should be united, strong and united, and hold group operations!

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