Hardware Industry "Matthew Effect" Hardware Trend Analysis

The Matthew Effect refers to the stronger and weaker weakers. For the hardware industry, powerful companies use hardware trends to analyze better development companies, while for SMEs, only a tenacious transformation and upgrading can spell a world in the hardware industry.

(1) Tool hardware requirements Increasing hardware tools are labor-intensive industries. Yongkang, as the hometown of hardware, has become a gathering place for hardware tools by virtue of low-cost traditional competitive advantages. With the continuous improvement of our country’s status in the world, more and more countries around the world are starting to use Chinese hardware products, which has stimulated the development of China’s hardware products to some extent. In recent years, with the acceleration of the global economic integration process, the Chinese hardware tool processing industry has gradually become the main force of the world's hardware and tool industry. The demand for hardware tools in some developed countries, especially in Africa, the Middle East and other developing countries, is increasing at a rate of more than 10% per year.

(II) The integration of hardware product quality and foreign companies will continue to increase the quality and competitiveness of Chinese hardware products. While continuing to expand markets in the United States, Japan, and other traditional countries, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom. At the same time, the requirements of the international market for China's hardware products will gradually evolve and change. There will be higher requirements for the quality, packaging, and delivery deadlines of Chinese products, and even gradually extend to the production process and product development, and the products and the environment , energy resources, and humanities combined. The huge market and central position attraction will further attract the hardware manufacturing center of multinational companies to transfer to China.

(III) Capital Expansion Intensified After China's accession to the WTO, under the global environment of competition, industrial capital has become an important subject for the industry to improve its competitiveness. In 2004, Supor and Vantage went on the market successively. Hongbao was also working hard for the listing. Wanhe's capital market operation will not stop due to the failure of restructuring with Yuemei. From a capital perspective, the current major feature is the expansion of capital.

(IV) Cooperation between enterprises In the view of increasing competition behavior, the cooperation between resource sharing among enterprises is increasing. On the one hand, the trend of development of the sales industry has led to the continuous rise of the status of large-scale home appliance chain stores, increased control over the industry, and participation and initiation. Previously dominated by the manufacturer of price competition. Large retailers, with their broad market coverage, purchasing scale, and cost advantages, will increasingly control the production companies in terms of product pricing, payment, and delivery. On the other hand, manufacturers have tightened their control over retail terminals, striving to reduce sales cycles, save on sales expenses, and make sales channels more professional. The company's sales model has been able to adapt to multiple markets at the same time. As a subordinate small and medium-sized enterprise, it will be in a disadvantageous position in the competition under this trend.

From the above point of view, the trend of tool hardware increases year by year, hardware product quality increases, capital expansion intensifies, and inter-company cooperation increases. For large and powerful hardware companies, the incident is good, when such large enterprises comply with this The development trend will only gradually become stronger and bigger. For small and medium-sized hardware companies, there may be gaps in product quality, and there are relatively few opportunities for cooperation, let alone capital operations. Therefore, in the hardware industry continues to develop and progress, the survival environment of small businesses will become increasingly difficult.