In recent years, decorative hardware companies have sprung up and succeeded, spreading all over the streets of Hainan. However, because of being constrained by the old production concept, many small and medium-sized enterprises still remain at the level of pursuing quantity, the product quality is difficult to be guaranteed, and the industry needs to catalyze itself.
The author found in the Hainan market that most of the local decorative hardware distributors are small businesses, mainly small shop-style shops, and the shops are scattered and the brand awareness is not strong. These companies often rely on price wars and sales to win, and only a small proportion of them make brands, resulting in scattered, chaotic, and small industries. The outdated business model is far from being able to adapt to the rapidly developing market situation.
Distributors take the low-price products of small brands as the preferred standard for easy establishment in third- and fourth-tier cities, resulting in small product differences, extremely fierce market competition, and continuous dilution of catalytic profits, thus prompting most products to compete for prices and services. However, many manufacturers do not have innovative R & D capabilities and sustainable development strategies, but just blindly imitate and copy. The product technology and style are almost the same. The homogenization of the entire market is very serious. The business model is single and conservative, which seriously causes the hardware industry to enter the price. Vicious competition.
Hardware enterprises should actively increase technical equipment and product updates, complete the development from low-level products to high-end products as soon as possible, and shift from price-based to high-quality, high-tech product competition. With the deepening of competition, the overall profit space of the hardware industry chain is compressing, and the space for price reduction is shrinking. Enterprises should realize that price competition alone cannot enhance their core competitiveness, nor is it the direction of long-term development. Enterprises must strive to explore new development paths. We should increase investment in technology, develop new products with high technological content, take product differentiation as a long-term plan for enterprise development, and seek new market demands to achieve sustainable development of the enterprise
In fact, hardware accessories play a key role in connecting, decorating, expanding functions, and extending life in household products such as cabinets, wardrobes, doors, windows, and bathrooms. Although it is so important, people's attention is not high. The hardware accessories industry is still in the development stage, and the market consumption potential has yet to be tapped.