What are the future development opportunities in the hardware market?

With the intensification of market competition pressure, most of the hardware companies in the production, their profit margins in various stages of the industry chain are compressed, reducing the room for price reduction. After the increase in the price of electricity, the production costs of the hardware companies will increase. It will be difficult for them to pass on their own due to their own digestion. The profit space of hardware companies will be further squeezed. The vicious circle of development of the industrial chain has led many hardware companies to realize that if we want to develop in the long term and do a good job in the market, we must re-select a new battlefield. At the same time, relying solely on price competition cannot establish core competitiveness, which is not the direction of long-term development, so as to strive to explore new development paths. At the same time, it will enhance the technological innovation and quality of its own products. Establish a new management principle to ensure the sustainable development of the company.

Everyone is very clear that China’s hardware manufacturing industry is already the manufacturing base of the world’s hardware industry. Its production share accounts for more than half of the world’s hardware manufacturing. China’s hardware manufacturing industry is in a stage of rapid expansion. This market condition is the national hardware market. The development has laid the foundation, but in terms of specific hardware market or development of hardware in a certain area, the author has initiated the following thinking from the recent actions of individual companies:

The development of hardware channels in remote cities was one of the events: Recently, the Xinjiang flagship store of Saida Tools set sail, and like a heavy ** entered the calm water of the hardware tool industry in Xinjiang, setting off a wave of far-reaching waves. Its launch has brought impact on the traditional business model, brought new business ideas and values ​​to the industry, and made the company stand upright at the head of the times.

Event 2: On November 2nd, from the “Zhejiang Hardware Industrial Park” located in the Urumqi Economic and Technological Development Zone, it was learned that the industrial park opened in less than two months, and 40 small and medium-sized Zhejiang enterprises have been settled here.

Incident Analysis: We all know that Xinjiang, as an energy-rich region in China, is rich in petroleum, natural gas, coal, and non-ferrous metal resources, and has been included in the strategic replacement of important national resources. Some pre-existing and obstructed prefectures also became the focus of investors because they were rich in resources. When investors start their actions, they will inevitably drive the development of downstream hardware products. This is one of them. At the same time, the geographic location of the Xinjiang region is an important channel for China to connect Central Asia, South Asia, West Asia, and Europe. Therefore, most of the cost will be saved in the future export of products. For professional hardware companies doing foreign trade, this point is worthy of attention. At the same time, this is also the reason why companies choose to settle in Xinjiang.

The first-tier cities are developing, and the second and third-tier cities have gaps in the next five or ten years. The construction of specialized markets will be developed from first-tier cities to second-tier and third-tier cities, extending from eastern and coastal economically developed regions to less developed regions in central and western regions; The second generation market accounts for a large proportion and has great potential for development. The pace of transformation and upgrading will be accelerated. Although the new three-generation market has a small proportion, due to its large scale and large regional impact, it has a strong impact on the existing market structure. It is difficult to re-establish a regional market pattern centered on oneself. Therefore, some of them fail to achieve the desired goals and effects and are in a period of adjustment and cultivation.