Hardware products industry import and export and development trends
Hardware products industry import and export and development trends, market size, related risk barrier composition
The upstream industries of hardware products are mainly steel, non-ferrous, plastic and other raw material industries. Upstream product supply and demand, technology and quality levels have a certain impact on the development and profitability of the industry, as evidenced by the fact that rising raw material prices will directly lead to rising procurement costs, and the quality of raw materials affects the quality and performance of products. The market size of the hardware products industry is closely related to the development status of downstream industries. The downstream applications of hardware products are extensive, involving construction, industry, household and other industries, the development trend of the hardware products industry is mainly dependent on the demand of the downstream industries to pull. Due to the multiple application scenarios and downstream industries there is no shortage of large volume, stable development of large markets, benefiting from this, the hardware products industry has a stable development prospects.
1、Industry Overview
China Hardware Products Association subdivides hardware products into eleven sub-industries such as architectural hardware, tool hardware, sanitary ware, daily-use hardware, cooking utensils, locks, kitchen equipment, etc., which correspond to a wide range of downstream application scenarios such as construction, industry, household, catering, etc. based on the differences in the use of hardware products.
With the development of science and technology and economy, developed countries are no longer the main production traders in the hardware industry, the rise of some developing countries, the formation of some emerging industrial countries and the old industrial countries to compete with the situation, and these competing countries include our country and developed countries in Europe and the United States and some Asian developing countries. At present, China has become one of the world's major hardware producing countries, with a vast market and great consumption capacity. Because the hardware products category is complicated, involving many application scenes, China's hardware products market volume is huge and the overall trend is more stable. According to the data of the National Bureau of Statistics, the total amount of China's hardware materials market turnover has not fluctuated much in recent years, and the stable and huge upstream materials market turnover data also reflects the stable development trend of the midstream hardware products industry.
Looking around the world, because China's labor prices are at a lower level compared with developed countries, and there is a strong market potential, many developed countries in Europe and the United States in order to reduce costs, the processing plant will be transferred to China, making China quickly become a hardware processing exporting countries. According to customs statistics, 2022, China's hardware products industry, total foreign trade imports and exports of $195.45 billion, an increase of 1.3%. Among them, exports of $ 169.76 billion, up 3.49% year-on-year; imports of $ 25.689 billion, down 11.16%. Trade surplus of $144.07 billion, an increase of 6.62% year-on-year.
2、Industry development trend
(1) Integrated business
Hardware products market space is huge, but due to the past industry entry threshold is low, and the product itself is complicated, the industry presents "big industry, small business" characteristics. Integrated operation is the future development trend of the industry, and the first mover has high barriers to competition and is expected to become a giant in the industry in the future.
(2) Intelligent development
Along with the downstream industry products constantly updated iterations and the market for product technology content to enhance demand, hardware products to automation, intelligent direction will become an inevitable trend, the industry will achieve technological upgrading to improve the competitiveness of products and enterprises in the market.
(3) Strengthen brand awareness
The current number of enterprises in China's hardware products industry is numerous, the qualifications of enterprises are mixed, but due to the low technical content of products, product differentiation is not significant resulting in the industry brand awareness is not strong enough. Brand implementation is a powerful tool for the development of the company, high brand awareness, high premium capacity, high brand loyalty and high sense of value of a strong brand, is the implicit value of hardware enterprises and core competitiveness. Along with the development trend of industry integration, strengthening brand awareness to establish will also become the future direction of development of the industry.
3、The basic risk characteristics of the industry
(1) market competition risk
The development of China's stainless steel products industry is gradually mature, more and more potential enterprises will enter the stainless steel products industry. At present, the industry is highly market-oriented, competition is relatively full, similar enterprises often compete for market share through product price wars and so on. At the same time, the industry concentration is low, the financial strength and scale of the enterprises involved are generally small, the market competition regional characteristics are obvious, showing the characteristics of regional segmentation. Along with the continuous technological progress of the industry, enterprises with core technology and superior customer resources will gradually win, and the existing industry pattern may change, and the industry will face more intense competition.
(2) Technology update risk
With the intensification of market competition, the technology renewal cycle is getting shorter and shorter. The innovation of technology and the development of new products are the key factors of the company's core competitiveness. If companies in the industry cannot accurately grasp the development trend of the industry and products in a timely manner, it will weaken the company's existing competitive advantage.
(3) Raw material price fluctuation risk
The main raw materials for the company's products are stainless steel and aluminum. Aluminum and steel are bulk commodities that are susceptible to global economic fluctuations and market supply and demand, and their production and price changes have a large impact on the raw material procurement costs of the metal products industry. If the prices of raw materials fluctuate significantly due to economic fluctuations and market supply and demand shocks, it will have a significant impact on the production and operation, capital turnover, manufacturing costs and profitability of the enterprise.
4、Industry Barriers
(1) technical and financial barriers
Stainless steel products industry is a capital and technology-intensive industry, the need to invest a lot of money to purchase production equipment, and the production process covers a wide range of technical applications, cross-penetration between them, usually requires material inspection, melting and die-casting post-processing, etc., only the production of a variety of equipment supporting the complete and combined use to manufacture and process products that meet customer requirements. In particular, customer demand-oriented, non-standardized design of stainless steel products suppliers, must thoroughly understand the commonalities and differences of customer groups, with the changing needs of customer groups, in order to ensure that the core products always fit the needs of customer groups, requiring a higher level of technical investment and capital investment. For new entrants to the industry, due to the scale of capital constraints on technology development and transformation, it is difficult to accumulate mature technology patents in a short period of time, and therefore difficult to quickly provide products and supporting services to meet the technical and production needs of customers, it is difficult to form a competitive edge in the industry.
(2) Talent barriers
Stainless steel products industry is involved in metal materials science, electronics, computer software development, power supply, automatic control, mechanical design and manufacturing and other disciplines, integrating materials, machinery, electricity, computer information and automation control technology in one industry, the requirements of R & D design and technical personnel is relatively high, need to be equipped with experienced mold, process and design programmers in the design of material melting, equipment tuning Process parameters set and other production links to provide the necessary technical support, the design will be converted into process production processes, the various technical parameters will be input to the equipment through the compilation into the process production process, according to the different product requirements to design different processes.
At the same time, professional R & D, technical personnel into the company, but also need a period of targeted training, in order to set up a good fit for the company's business development of the core technical team, especially for the main business products have significant personalized design, non-standardized nature of the company, the technical personnel team requirements are more stringent. As a new entrant in the industry, it is difficult to master the perfect production process and control system and set up a well-trained production team in a short period of time.
(3) Brand and customer resources barriers
A good brand represents a reliable pre-sales, sales and after-sales service, is the core competitiveness to obtain customer resources and maintain customer adhesion. Stainless steel products industry downstream customers are generally molding equipment manufacturers, the supplier's production scale, quality control, delivery, technical capabilities and other aspects have very strict requirements. It generally takes a long time to enter the supplier system of downstream customers, and once the two sides have established a cooperative relationship, in the process of familiarity and friction to establish the recognition of the supplier's brand, customers usually choose to work with the supplier for a long time to avoid the operational risks associated with replacement. Therefore, when customers generate new demands, they tend to choose suppliers with a good history of cooperation, thus forming a more stable customer stickiness. As a new entrant in the industry, it lacks both influential brand effects and good accumulation of customer resources, making it difficult to gain competitiveness in a short period of time.
For more industry information, please refer to "2023-2029 Hardware Industry Market Research and Prospect Forecast Report" by Phua Youze Consulting. Phua Youze Consulting also provides industry research report, industry chain consulting, project feasibility report, special and new small giant certification, 14th Five-Year Plan, BP business plan, industry mapping, industry planning, blue and white paper, IPO fundraising feasibility study, IPO work The bottom draft consulting and other services.