China has become the world's hardware manufacturing industry base
1.Adopt a differentiated business strategy
The division of markets by branches, market segmentation, and the formation of specialized and large-scale markets are the primary guarantees for market prosperity.
Take the China Hardware City as an example. At the beginning of the market’s formation, the hardware market in Shenzhen was dominated by Lao Nanma Road Hardware City before 2005. Due to historical factors, it is located in a prosperous downtown area. The market cannot be entrenched in the downtown area for a long time. After investigating the overall urban planning of Shenzhen, the site was chosen to be close to the outer ring line and the 205 National Road. The new district can radiate far to Beijing, the three northeastern provinces, Hebei province and other places, and it is the first choice for the market.
However, as how the emerging hardware city complements the old city and gradually strengthens itself, we have chosen a differentiated complementary strategy. In 2006, we began to make a unified business positioning and positioning for the current four districts of A, B, C, and D. According to the plan, Area A and B are hardware and electrical appliances area, Area C is solar energy area, and Area D is pipeline valve area. In the later investment promotion, many construction machinery and machine tool equipment operators think that our city’s buildings are spacious and have relatively high floors. The roads are wide, suitable for large-scale equipment to enter and exit, and one after another enters the city for business. We have opened up a professional street for machinery and equipment in a street on the west side of District A and C in accordance with the requirements of the market. This makes the business planning of the four districts comparable to other hardware markets in Shenzhen. The positioning of the company is differentiated, and the effect of seeking differences from the same and complementing each other is formed. By the first half of 2007, the four major professional wholesale markets have basically taken shape.
The hardware industry is all-encompassing, with a wide range of products, ranging from steel, machine tools and equipment, to screws and screws. It covers a wide range of industries. Although the current hardware city is relatively large, it is impossible to accommodate all hardware products. It must be based on the business circle. Within the scope of the economic development stage and characteristics, adopt differentiated business strategies to segment the market, select the hardware industry suitable for its own market development, and target investment to form its own characteristics and form a professional market advantage.
2.The unified operation and management of shops is an important guarantee for market development.
At present, the vast majority of hardware markets are composed of property-owned shops. It is not that property-owned shops do not operate well. According to our experience in operating several markets in East China, the successful approach is to sell shops to scattered owners at the same time. The market management company immediately signs a commission operation contract with each owner to give the owner a stable rental income in return. The commission operation period should be more than 5 years. The unified commission operation first ensures that a unified market planning can be carried out for different areas of the market. At the beginning of investment promotion, unified investment promotion can be carried out according to the business format planning of the market. While avoiding the chaotic situation of mixed operation, it also promotes the formation of scale effects, making different functional areas bigger and stronger, and forming professional market advantages and scales. effect. The current four major areas of China North Hardware City are compatible with the four major professional markets we operate, and it is impossible to achieve without unified management. Under the premise of unified entrusted operation, the management company should reserve more than 40% of the business area. Within two years of launching the market, it will implement preferential policies such as rent-free to promote the entry of major brand manufacturers, general distributors, and first-level agents. Provide room for maneuver, and at the same time can use 40% of the self-retained business area to play a leverage role in the rental policy in the process of market development.
3.Strong brand is the core competitiveness of the market.
In a market environment where the types and quality of modern commodities are converging, the essence of competition is brand competition. How to form a strong brand is something that every enterprise and every hardware market must face. The formation of a strong brand includes two aspects. On the one hand, It is the brand’s extensive recognition, on the one hand, the brand’s strong centripetal force. In this regard, Zhejiang Yongkang and Wanguan Hardware City are at the forefront.
The wide recognition of the brand includes two aspects. A brand in the hardware market itself, such as the North China Hardware City brand inscribed by Mr. Wu, many foreign customers in Shenzhen say that we are just Chong The name of your hardware city is magnificent, and the other is the reputation of the manufacturers and products operating in the city. The brand of the hardware market itself needs to be widely promoted by the management company through various advertising media and marketing activities, and more importantly, the merchants in the city do not Intermittent promotion has formed a household name. For example, the advertisements of Zhejiang Yongkang Hardware City and East China Hardware City on CCTV are very representative, which can be said to be household names overnight. Of course, the choice of this media is based on the market’s own radiating business circles and different stages of development. The role of strong brand centripetal force is to allow customers to form the subconscious and conscious buying habits of the brand. Just like buying beverages, we first think of Coca-Cola, Huiyuan juice, and fast food. The first thing we think of is KFC, McDonald’s, Yonghe soy milk, and participate in hardware The exhibition first thought of Las Vegas in the United States and Cohen Hardware Show in Germany. The hardware market first thought of Zhejiang Yongkang China Hardware City. This is the result of long-term brand accumulation and the formation of potential awareness in customers’ hearts. Buying habits.
The formation of brand centripetal force. In the modern fast fish eat slow fish market environment, the hardware market brand cannot be formed by decades of accumulation as in the past, but must be in the industry within three to five years. The formation of a good reputation, so the formation of broad brand awareness through advertising is the prerequisite for the formation of brand centripetal force, I will not repeat it here. What is the key to the formation of brand centripetal force? The key lies in the product advantages of merchants in the hardware market, the advantages of subdivided hardware professional markets, and the advantages of scale. For example, as a professional wholesale base for plastic pipe valves, which is currently vigorously developed in the North China Hardware City, there are more than 400 Factory offices, general agents and general distributors from all over the country, tens of thousands of varieties of products, well-known brands and low-end products are all available. Buyers come here to complete the one-time purchase, so there is no need to run around. In just over a year, it has been known to the majority of buyers in Shenzhen, forming a good reputation for buying pipeline valves and going to the North Hardware City. Brand formation in the hardware market relies on complete product expertise and numerous specifications of similar products, which creates a strong attraction. With the strong brand centripetal force in the hardware market, the market will not fail.
Although our country has become the world’s hardware manufacturing base, most of our hardware products are still in unbranded or off-brand products. Compared with the hardware products of developed countries such as Germany, South Korea, and the United States, there is still a big gap. The competitive advantage in the market still depends on low prices and low added value. This is similar to the development stage of the hardware industry in Japan and South Korea in the 1960s and 1970s. However, we cannot always rely on low prices or OEM processing for a long time. We need to upgrade the industry to meet the needs of the market. In recent years, many hardware products from developed countries have been entrusted to us for cnc machining. This shows that the level of China’s hardware manufacturing industry is not low. The key is our lack of brand awareness and a lack of well-known brands in the world. product.
As the hardware market is a direct window for the development of the hardware industry, it plays a role in guiding industry trends. In this regard, we must also have an international perspective to develop the market, so that our merchants’ products can participate in the environment of international market competition. In this regard, Dongguan PTJ Hardware Company is at the forefront. In May of this year, we also organized several companies to participate in Las Vegas to guide their products to enter the international market. The annual import and export volume of Shenzhen‘s hardware industry reached several. One billion U.S. dollars, most of which enter Southeast Asia, Northeast Asia, the Middle East and African countries and regions. Dongguan PTJ Hardware Company will make full use of Shenzhen’s international port advantages to guide the development of the hardware industry to high-end brands and form a number of hardware product nations brand.
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