How the hardware industry achieves new growth

This year, China's economic development is facing a lot of pressure. As a Chinese hardware industry closely related to people's lives, what challenges are faced in the new year? How can we break the times and adapt to the changes in the market and achieve new growth?

 

Structural adjustment

 

"We are responsible for home hardware products. The data has been declining in the past two years. I feel that I have been diverted from home decoration and integrated home products including the Internet. So we are here to think about ways to work with manufacturers and let manufacturers give us Drumming, add some confidence." At a dealer conference of a well-known domestic hardware manufacturing company, some local dealers said this.

 

In fact, the dealer's response is the most direct reflection of the times, especially the development of the manufacturing industry. In recent years, the adjustment of market structure, the change of procurement mode, and the rise of the Internet have all had a great impact on the original production and distribution methods. On the one hand, the proportion of fully renovated houses has increased, which has changed the way in which manufacturers compete in the market; on the other hand, the impact of the Internet has made offline and online consumption coexist. In this parallel period of the old and new models, the old model will inevitably feel a chill, but also urgently seek new ideas and ways out.

 

“In fact, traditional channels such as dealers still have advantages. They go deep into the market and are more closely integrated with consumers. They can feel the market more intuitively and face the needs of consumers. This is a characteristic that manufacturers and the Internet do not have. Therefore, in the transformation, dealers should better grasp and use their own advantages, integrate resources, further improve service levels and capabilities, and improve autonomy, and become a role in marketing services." According to industry insiders.

 

Market break, new category growth

 

The worries caused by market changes are more gratifying. Compared with the traditional gas water heaters, the wall-hung boiler has a high-end positioning, and the products for the middle-income group have developed rapidly in recent years.

 

According to the statistics of Aowei Cloud Network, from January to November 2018, the total scale of real estate decoration market was 2.145 million sets, an increase of 35.6%. The scale of the water heater directly brought by the fine decoration reached 521,000 sets, an increase of 26.9%. In the high-end real estate in the non-central heating area, in order to meet people's demand for heating, the wall-hung boiler is highly respected, and the market share has increased rapidly, with a year-on-year increase of 166.3%. Among them, the second-tier cities are the main supporting positions for wall-hung boilers, accounting for over 60%; from the perspective of growth rate, the growth rate of wall-mounted boilers in the third-tier cities is the fastest, with a year-on-year increase of 616.2%, and the future wall-hung boilers have a tendency to spread to third-tier cities.

 

Integrated stoves, as another new category, have also achieved rapid growth. According to Zhong Yikang's calculation, in 2018, the integrated stove industry is in a good trend in the case of a sudden change in the market for kitchen appliances. The market size is expected to reach 1.748 million units, with sales of 12.92 billion yuan, a year-on-year increase of 44%. As a result, the integrated stove has become the third industry in the kitchen appliance industry, with the exception of range hoods and gas stoves.

 

In this regard, Shi Lanlan, chairman of the China Hardware Products Association, pointed out: "At present, China's middle-income people have already formed, which is the biggest boost to promote high-quality development and consumption upgrading. How to better adapt to the market and meet demand, It is necessary to study the real needs of this part of the consumer in depth." In fact, the performance of the current industry and category just proves this. Especially under the premise of the current trend of consumer grading, enterprises should not only consolidate the reputation of consumer groups, but also pay attention to innovation and cooperation between industries, and the interaction between technologies, especially in the exploration of high-end markets. It is necessary to carry out active and effective work.