Analysis of the three major drawbacks of the development model of China's hardware industry

Abstract China's hardware industry has maintained a high-speed development since the early 1990s. At present, it has become an important hardware production country in the world, but it is undeniable that China's hardware industry is in product development, innovation, brand management and marketing management. , company size, capital...

China's hardware industry has maintained a high-speed development since the early 1990s. It has become an important hardware production country in the world, but it is undeniable that China's hardware industry is in product development, innovation, brand management, marketing management, There are many gaps in the world hardware industry in terms of enterprise scale and financial strength. In terms of market share, China’s share of total international trade is very low, and it is not commensurate with the identity of the major hardware producing countries. The reason is that China's hardware products are still in the low-grade, low-priced primary state. On the one hand, this gap brings a lot of resistance to the development of the hardware industry. At the same time, it also allows us to see huge market potential. As long as we upgrade our technical content, the road to China's hardware products is still broad.

There are three development modes of hardware channels: (1) original hardware street, scattered hardware stores in the streets and lanes; (2) specialized hardware and electromechanical market, including traditional and modern; (3) hardware chain supermarkets, online store sales model . These three channel development models have certain drawbacks.

(1) The original hardware street is no longer suitable for the development of the hardware industry will inevitably be eliminated.

At present, there are three main types of hardware distribution channels in China, one is a hardware store cluster driven by demand, the other is a street-type distribution base for hardware building materials, and the other is a modern hardware professional market and hardware chain supermarket. Among them, the distribution base of hardware and building materials in a street style has not been adapted to the needs of economic development and has been gradually upgraded.

Among them, Tianjin Nanma Road Hardware Market is a representative of a street-type distribution base for hardware and building materials. It has been prosperous since the early 1980s and has been demolished and rebuilt. Chengdu Shengzi Street is the representative of the distribution base of Southwest Hardware and Building Materials Street. Since the end of 90, it has gradually been affected by the impact of Chengdu Jinfu Hardware & Electrical Market, Wanguan Hardware & Electrical City. At the same time, Wuhan Autonomous Street Hardware Processing Street, the background of the Muxiyuan Hardware Market and other places of hardware and building materials is not an upgrade or relocation, the once prosperous hardware logistics channel has gradually withdrawn from the historical stage.

(2) There are also some drawbacks in the specialized hardware and electromechanical market.

The investment in hardware and electromechanical market is also a big problem. How to attract investment? This is a problem in the hardware and electromechanical market. The relocation of northwest hardware tools and the expansion of the area have made investment a top priority. For consumers, finding a good store is difficult. How to find a good store is also a big problem for consumers. There is a sharp contradiction between the difficulty in attracting investment and the difficulty in renting shops. This contradiction cannot be resolved at one time. Traffic conditions are also issues that need to be considered in the hardware and electrical market.

(3) Online store sales, the chain model of the operation chain is a new model, small and large, and the sales area is wide, but there are also some drawbacks.

Online stores have become more and more popular, and because his starting point is low, many people regard online stores as a platform for entrepreneurship. We often hear how much money has been made by certain online stores. But I have never heard that there is a certain online shop that does not make money, not because everyone has made money, just because you only care about those who make money online to open a store. In fact, most of them should still not make money, so open a shop. Be sure to think clearly before you do, and don't blindly follow the trend.

Channel construction is the key to winning the market, and the channels under the homogenization market have differentiated competitive advantages. In general, manufacturers should try to avoid the same distribution channels as competitors. If competitors use and control traditional channels, manufacturers should use different channels or channels to market their products.

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