Hardware industry is specialized in the business model of high-speed oscillation

With the deepening of competition, the profit space in all stages of the hardware industry chain is being compressed, and the space for price reduction is decreasing. More and more companies are realizing that it is impossible to establish core competitiveness based on price competition alone, and not the direction of long-term development, in an effort to explore new development paths. Well, judging from this current situation, in the coming years, it will be the high-speed oscillation period of the hardware industry, and it will face many challenges.

1. The industry leader is not strong enough. Hardware tool industry, development tools, leading companies in the foreign market, market skills, the overall competitiveness of the industry, such as strengths are not clear;

2. Weak skills and innovation, the hardware tool industry identifies only one and three centers of skill (development) in Hangzhou and Jiande;

3. The market structure is too single. The important business of hardware tools comes from foreign trade orders, and exports are highly dependent on deposits. Under the influence of the economic crisis triggered by the international financial crisis, the export markets of these enterprises have shrunk sharply and constitute a serious threat to life development.

4. There is a shortage of public platforms. Even if there are hardware industry associations, industry self-regulation is still more difficult and the focus of the industry associations' development is still difficult.

So, to deal with these difficulties, hardware companies should start from the general direction, one is to focus on their own business model, one is specialized management.

To make policies more business-oriented, Professor Li Xiaofeng from the Henan University of Finance and Economics told the Middle West Hardware and Electromechanical Industry and Regional Economic Development Summit Forum in Zhengzhou: In the context of the rise of central China, policies have played a very big role in driving companies to achieve Leapfrogging is more likely than ever. Therefore, Cologne International (Zhengzhou) Hardware & Electromechanical City should pay more attention to its own business model in its later development and construction. It is suggested that in the development and construction of the Cologne International (Zhengzhou) Hardware & Electromechanical City project, Henan Bestest Real Estate Co., Ltd. should not only be a developer but also an operator, a unified investment, and a unified operation. Only in this way can a complete value chain of a commercial operation project be realized. To maximize the value of commercial properties.

Professional management deepens the regional market, said Tao Changwen, secretary-general of the Shaanxi Chamber of Commerce and Industry Federation of Hardware, Machinery and Electrical Engineering, and said that more restrictive policies for the development of the industry come from the market. Some problems have been exposed in our western region. The root cause lies in the practice of laymen. Therefore, the development of the hardware and electromechanical industries in the Midwest must realize the management of this industry within the industry, and at the same time, it also needs specialization within the industry to advance with the times. Cologne International (Zhengzhou) Hardware & Electromechanical City can hold such a forum in the early stages of construction to learn from the country's successful experience. This shows the team's professionalism and operational ability. I believe this market can be developed and built very successfully.

Fan Yunchang, Secretary-General of the Shandong Hardware and Electrical Machinery Association, said that the construction of hardware and electrical machinery market is the first research. The Cologne International (Zhengzhou) Hardware & Electromechanical City project must pay attention to the local hardware and electromechanical operators and understand their actual needs. Whether or not the market can continue to prosper in the later period depends on continuation of services. In this regard, it is suggested that the combination of renting and selling in the later period of operations, on the one hand, can quickly recover the investment, and on the other hand, it can continue the later period of service. Only in this way can the Cologne International (Zhengzhou) Hardware & Electromechanical City truly realize the vision of radiating the Midwest and driving the overall prosperity of the hardware and electromechanical industries in the central and western regions.

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