How to grasp the opportunity of hardware enterprises under fierce market competition

**Abstract** With the continuous integration of modern scientific and technological advancements into industrial practices, competition within the hardware industry has intensified significantly. To establish a strong presence in any segment of this sector, it is essential to have a comprehensive understanding of market trends and developments. Hardware tools encompass a wide range of products, including manual, electric, pneumatic, cutting tools, automotive maintenance equipment, agricultural tools, lifting devices, measuring instruments, tool machinery, jigs, molds, grinding wheels, drill bits, polishing machines, accessories, and more. Most domestic manual tool manufacturers focus on low-end products or OEM (Original Equipment Manufacturer) production, while high-end and branded products remain largely dominated by European and American companies. Additionally, as profit margins shrink, the potential for price reductions becomes limited, making it increasingly difficult for businesses to rely solely on cost-based competition. Therefore, new growth strategies must be explored to build sustainable core competencies. The hardware industry plays a crucial role in China’s light manufacturing sector and is considered a sunrise industry with intense competition and close ties to daily life. According to surveys, over 99% of enterprises in this industry are private small- to medium-sized businesses, mainly located in provinces such as Guangdong, Zhejiang, Jiangsu, Shanghai, Fujian, Shandong, and Hebei. China currently leads the world in the production of many hardware products, such as lighters, zippers, thermos cups, wrenches, pliers, knives, scissors, and more. These products hold significant shares in the global market, and China's influence in the global hardware industry continues to grow. Chinese hardware products are now present in over 220 countries and regions, solidifying its status as a major hardware producer. According to data from Luo Baihui, the total output value of the hardware industry reached 800 billion yuan, with an annual growth rate exceeding 15% before 2008. In 2008, exports reached $50.3 billion, accounting for 40% of the total industrial output. Except for a 7% increase in 2007, the industry had previously maintained a high growth rate of 20% to 30%. However, the global financial crisis that began in late 2008 severely impacted export-oriented enterprises. Orders vanished overnight, and some contracts were even canceled under various excuses. Industries like hardware tools, construction tools, locks, cutlery, and zippers were particularly affected. This crisis exposed the weaknesses of many Chinese export companies, which relied heavily on OEM models without their own brands or sales channels. In 2010, according to customs statistics, the total export value of hardware products in the first half of the year reached $26.396 billion, up 33.2% year-on-year. Imports totaled $7.984 billion, rising by 25.1%. The National Bureau of Statistics also reported increased output in several key areas: lock production rose 17.5%, household gas cookers increased by 5.8%, gas water heaters by 63.6%, range hoods by 34.7%, and daily-use stainless steel products by 51.4%. Power tools are among the most widely used hardware products globally. As technology advances, the power tool market is growing rapidly. However, quality issues in various types of power tools continue to cause consumer harm, leading to stricter market demands. The European Union has introduced the EN 60745-1 standard specifically for power tools, aiming to set safety specifications and regulate products entering the EU market, thereby minimizing risks to users. The EU has also implemented electrical certification laws requiring all exported power tools to meet strict standards. All power tool products exported to the EU must be certified and marked according to the EU Electrical Directive before being shipped. Companies must apply for certifications in advance, especially for products nearing expiration. During inspections, preparation is critical. Enterprises need to accumulate experience and adjust their products in line with EU regulations; otherwise, they risk being excluded from the market. Facing increasingly fierce market competition, if domestic companies fail to adapt, it could negatively impact their long-term development. Strengthening after-sales service is also a top priority. Most power tools sold worldwide are produced and exported from China, making it the world’s leading supplier of power tools. However, as the industry grows, challenges become more evident. The research and development system reform is progressing slowly, and the gap with foreign competitors remains significant. Exported products often generate low foreign exchange earnings, with low performance levels and selling prices. Many companies operate on a small scale, with low concentration, and rising raw material costs further hinder industry development. To overcome these challenges, power tool enterprises must seize new opportunities, enhance technological innovation, actively pursue product certifications, accelerate technological upgrades, improve supporting systems, attract foreign investment, and promote corporate restructuring. Only through these efforts can the industry thrive and avoid failure in the evolving market landscape.

AGV Cargo Handling Forklift

Agv Cargo Handling Forklift,Agv Pallet Handling Smart Forklift,Heavy Duty Pallet Racking Forklift,Agv Heavy Duty Pallet Transfer Robot

Jiangsu Xicang Intelligent Technology Co., Ltd. , https://www.xciwarehousing.com