China's hardware mergers and acquisitions towards the internationalization

The most important feature of the modern enterprise system is the use of shareholding systems to transform family-owned enterprises as well as collective and state-owned enterprises. This transformation was clearly successful in the Chinese hardware industry.

With sales of 800 billion yuan and 1 trillion yuan, China’s hardware, which has been thriving for 10 years, has deservedly been listed as a world-class manufacturing giant. With the pace of transformation, upgrading and innovation, it is being created. The powerful country is moving forward. Experts believe that this data is full of China's hardware struggle history and upgrade history for 10 years. The historical miracle was created by 99% of private enterprises in China's hardware industry. These enterprises have successfully transitioned from family-owned, collective, and state-owned enterprises to modern enterprise systems and have successfully turned themselves into private enterprises. After the reform and opening up, the hardware industry has absorbed more private capital to enter. From the past planned economy period, the state has limited fixed-investment funds to set up factories and factories, and until now, the civilian consumer goods competition field has retreated from the private sector until private capital dominates.

In the past 10 years, the small-scale individual family-owned enterprise system and the collective and state-owned enterprises that have lost their viability due to the constraints of the system have no longer been suitable for the development of the new situation. How the hardware companies break the shackles and once again make a big step into the market is the same major issue facing companies in other manufacturing industries in the country. Finding a way out in the privatization system and introducing a modern enterprise system is the answer.

Shenyang Zhuhai Double Happiness Pressure Cooker and Guangdong Wanjiale Gas Water Heater Co., Ltd. are examples of the successful restructuring of collectives and state-owned enterprises. For a time, the once-happened Shenyang Double Happiness, because of institutional reasons, loosened the R&D of core technology, and the business was on the brink of collapse. In the face of harsh reality, Double Happiness has accepted the restructuring of this agent. Although at the same time the system was transformed into a debt of 270 million yuan, the company’s leader, Jiang Tianen, turned it down and eventually revitalized the company. The product has developed a variety of cookware products from a single type of pressure cooker in the past. Especially after 2000, Double Happiness thrown a major move since it moved south to Zhuhai. After hard work, Double Happiness rejuvenated its youthful vitality. The scale, production capacity and market continued to expand. The products were exported to Europe, America, Southeast Asia and other countries and regions. The company not only owns a modern factory, but also integrates the factory area with a modern garden. The spirit of humanism radiates brilliantly.

Compared with the transformation of state-owned and collective-owned enterprises, the transformation of family-owned private enterprises must come from a variety of perspectives, combined with their actual conditions, and have their own characteristics.

The transformation of Guangdong Wanhe New Electric Co., Ltd. began with an internal soft landing. After entering the new century, the chairman, Lu Chuqi, proposed to transform the family business into a corporate family. In the company's business division system, from raw material procurement to product development, from technology research and development to market development, all departments have full responsibility, breaking the bigger and bigger private enterprises will grow a pot of rice. Nowadays, Wanhe has become a listed company and it is showing its development power in macro scale. In technology research and development with independent intellectual property rights, many technologies fill domestic gaps. Some projects have also been included in the National Spark Program. They have filled the technology gaps of major national projects nine times, and the products have obtained hundreds of patents.

Entering capital operation becomes a public entity

With the gradual development and expansion of the hardware industry and enterprises, and the further maturity and modernization of management methods, how to better use the increasingly mature capital market for my own use, create new opportunities for brand development, and become the focus of outstanding brands and key enterprises At this point, many companies have already made attempts to operate in the capital market. So far, there are more than 20 hardware companies listed on the A-share market, including products such as cross-tools, gas appliances, kitchen appliances, cooking utensils, daily-use hardware, and zippers.

Boss Appliances, listed on the A-share market on November 23, 2010, raised nearly 1 billion yuan in capital, and maintained a 30% or more growth in the three-year listing period.

The boss company sticks to its main business, first of all investing heavily in company size, technology research and development. In order to provide consumers with better products, the production capacity of 1 million range hoods will be expanded. The company's long-term plan to actively introduce advanced foreign equipment, and in the construction of new production lines, the reasonable use of the space created by the river within the production area, to form a three-dimensional production line. Not only does it reduce product costs to some extent, but it also reflects the sense of responsibility of a public company for shareholders.

The boss company sticks to its main business and, at the same time, builds advanced laboratories to enhance its technological R&D capabilities. The semi-anechoic chamber completed by the owner is currently one of the largest semi-anechoic chambers in the kitchen electric industry in China. The materials and processes have reached the most advanced levels in the country. After the listing of the company, it spared no effort to invest heavily in building a new laboratory at the national R&D center. In terms of brand building, it built a three-dimensional branding system of bosses, fame, and the three major brands of Dizewa.

Acquisitions, mergers and acquisitions to internationalize

In the past 10 years, the experience of the Chinese hardware industry can be described as ups and downs. Since China joined the International Trade Organization (WTO) at the end of 2001, Chinese hardware products companies have also entered the international market more and more deeply.

The sudden opening of the global market, on the one hand, has provided China's hardware industry and enterprises with a steady stream of orders and vast space. On the one hand, it has also created opportunities for the industry and companies to improve their quality and learn advanced technology. In the past 10 years, the number of imports and exports has grown significantly, becoming the golden age for the development of the Chinese hardware industry. Since the international financial crisis in 2008, the international market has continued to slump, coupled with the European debt crisis that broke out in 2010, many companies have realized that although OEM export methods have brought profits and growth to enterprises in a certain period of time, it is not long. In order to make the company bigger and stronger, both domestic and foreign markets must be given the same weight. It is necessary to have its own brand. This is a sign that it is truly on the road to internationalization. Experts pointed out that in addition to their own changes, in the past 10 years, many companies in the hardware industry have begun to seek international cooperation again, including brand acquisitions, shareholdings, etc., and push international cooperation to a deeper level and wider areas. On a larger scale, we have entered a more ambitious realm.

In recent years, there have been a few companies with overseas independent brands: Jinan Meide Foundry Co., Ltd., established in the 1950s, has been focusing on the production of valves and pipe connectors for 50 years. In 1993, Mead, which was also called Jinan Magang Steel Works, introduced foreign capital and formed a joint venture with Hudson Corporation of the United States to form Jinan Meide Foundry Co., Ltd. According to the United States ANSI standard development of pipe fittings and into the United States market, and in October of the same year, formally applied to register their own brand Mike trademark. Mike strictly organizes production according to the ISO9001 standard, and has obtained multiple quality certifications in many countries. Mike's brand pipe fittings are unobstructed in the global market, and sales are booming.

In 2002, in the anti-dumping investigation initiated by the United States against China's pipeline connector companies, only Jinan Meide and a company in Shanghai stood up for anti-dumping and responding. However, it was this response that the government departments at all levels, including the Ministry of Foreign Affairs, knew that Jinan Meide not only provided a lot of help for the success of the suit, but also greatly improved the visibility of the company and the brand. In the course of time-consuming and long-lasting anti-dumping and responding, many domestic companies of the same type were unable to bear the high export tariffs. They all closed down or changed their production, and Meide not only persevered, but also became the industry leader.

Today, Mike's branded connector sales network is spread over more than 100 countries around the world, and its market share and brand awareness rank first in the world. The various types of connectors and fittings manufactured by Mead have formed a series of more than 5,000 varieties in the three major series of standards in the United Kingdom, the United States, and Germany. The annual production capacity exceeds 200,000 tons, and it is sold to more than 100 countries and regions in the world, becoming the present world. It is the largest steel pipe manufacturer in China with the largest scale, the most comprehensive product specifications, the highest market share, and the most comprehensive strength.

The globalization of hardware companies is still moving further and further.

Experts said that many companies set up branches abroad, create new brands, use suitable methods for the other market, and individuals to better handle internationalized businesses, or use acquisitions to enter the local market more quickly and efficiently.

More and more overseas brands also have a background in China, such as Supor and Putian, which are jointly held and even controlled by internationally renowned brands, and the Chinese brands carry foreign identities. This kind of integration with foreign enterprises will become more and more in-depth and closer.

Professional managers, professionals do professional things

China’s hardware is listed as a world-class manufacturing powerhouse. From a corporate level, it is a solid push for a large number of growing leaders. It can be said that reform and opening up have yielded a generation of entrepreneurial talent. So far, many first-generation entrepreneurs are still active in the front line.

With the development of the times, the first generation of entrepreneurs clearly felt that in the step-by-step deepening of the market competition, especially in the face of the international enterprise management system and capital operation and other modern enterprise models, entrepreneurs need to introduce changes to adapt to market changes. A new generation of professionals. It is a conclusion that professional people should do professional things. In this way, professional managers are increasingly entering the hardware industry, and the main features of the modern enterprise system have emerged. These professional managers have done a lot of fruitful work and made positive contributions to business management, technological progress, and market expansion. Among the successful corporate managers, Ye Yuanzhang, Zhao Jihong, Zhang Xiaozhong, and Yu Shaoyan, there are also second generation corporate leaders who have grown up from the family. Mao Zhongqun of Fang Tai is an outstanding representative of them.

A major hardware and hardware company, after 30 years of reform and opening up, especially in the past 10 years to achieve the transformation of private economy, the introduction of modern enterprise system, after struggle, tempering and fundamental transformation, stands in front of the people and the world.