Raw material price fluctuation Hardware lock industry for industrial upgrading

Locks are the traditional industries of China's hardware industry. Under the background of global economic integration, the lock industry strives to change its development ideas, meet the needs of consumers at different levels at home and abroad, and achieve a sound and rapid development of the lock industry. “The recent prices of copper, zinc and other metal raw materials fluctuate, and customers have to protect their capital and reduce inventory pressure, carry out capital preservation sales, and sales of door and window locks increase. The introduction of measures to expand domestic demand eased some of the pressure caused by the financial crisis and the domestic sales of door and window locks rose significantly. According to Luo Baihui, CEO of Jinmonet's hardware tool network, locks in doors and windows have an unprecedented rising trend. Autumn and winter home decoration increased, door locks, handle locks, anti-theft locks and hinges, door stoppers and other products have a better trend, and the transaction volume is relatively large; chain locks, motorcycle padlocks, and disc locks are also popular with consumers. considerable. On the export side, foreign investors mainly rely on inquiry and return orders, and the wait-and-see atmosphere is strong.

However, there are certain problems with door and window locks. These problems also require the attention of door and window locks companies, and constantly upgrade the industry of door and window locks to an unprecedented height.

There is a general lack of brand awareness. China's lock companies are small in size, and there are not many leading enterprises for locks. They cannot drive the development of the lock industry very well. China's locks have low barriers to entry. Lockers themselves lack brand awareness and do not pay attention to the establishment of brands. Some companies only Family-style workshops, funds, manpower, technology, management and other factors constrain their development, and their brand awareness is even lacking. Luo Mohui, CEO of Jinmonet’s hardware tool network, believes that lock companies should strengthen brand building, increase the competitiveness of lock companies, and standardize the lock market.

The lack of market competition in the highly competitive market Currently, about 88% of lock products in the market come from Zhejiang province, among which, Yiwu local market accounts for about 28%, and the factory direct sales ratio is as high as 70.5%. The production of mid- and low-end lock products is the main reason, and high-end products are scarce. As the lock industry is a labor-intensive industry, entry barriers are low, and the degree of specialization is not high, and competition is becoming increasingly intense. The threshold is low, and the market for lock products is lacking in standardization. Some products have serious homogeneity, products have no characteristics, and there is a lot of confusion and authenticity. With the increase in the cost of raw materials, some lock companies adopted a price war, which increased the disorderly competition in the lock market and aggravated the development of the lock industry.

The lock industry will use the brand as a link to innovate the marketing model. The lock industry uses brand enterprises as the link, innovates the marketing model, plays the role of traditional tangible markets, specialty stores, franchised stores, and various exhibition platforms; and uses modern networks and information technology to vigorously develop the role of the online sales and trading platform. During the “Twelfth Five-Year Plan” period, locks will be formed as soon as possible, with leading enterprises as the core, and a complete and coordinated supporting system will be established to extend and improve the industrial chain.