In today's unpredictable global economic climate, the domestic housing market is experiencing rising prices and increased supply. This has created both challenges and opportunities for small and medium-sized hardware companies seeking to navigate the domestic market. With shifting trade policies, including the cancellation of export tax rebates and growing protectionist tendencies in some countries, large enterprises are now looking to expand their presence overseas.
However, many Chinese hardware firms still struggle with limited independent innovation capabilities and weak brand recognition. Can the industry break free from its reliance on foreign development models and carve out a unique path forward?
Since China's accession to the WTO, the country has become a major hub for global manufacturing. This trend has accelerated as industries relocate to the mainland, positioning China as a key player in the world’s manufacturing landscape. The building decoration sector, closely tied to construction, is currently undergoing a significant transformation, as highlighted at the recent China International Building Decoration Exhibition.
Despite the vast potential of the domestic market, the industry remains fragmented, with numerous small, scattered companies operating without clear leadership. There is still no listed company in the Chinese hardware sector, which highlights the need for consolidation and stronger corporate structures.
While the lock industry alone has a market size of around 40 billion yuan, the low entry barriers have led to an oversaturated market with countless players. According to Cao Hantian, Managing Director of Guangdong Hardware Co., Ltd., many small businesses have already been forced to shut down this year, signaling that the domestic hardware industry is entering a period of restructuring.
Companies with strong R&D capabilities and established brands are now gaining a competitive edge, setting the stage for a more mature and sustainable industry in the years to come.
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