Foreign investment in the hardware tool market, how to deal with Chinese companies?

“In the future, we will continue to increase our investment in the Chinese market and continue to do a good job in localization to develop more products suitable for the Chinese market.” Announced at the Stanley Black & Decker Professional Power Tools Launch Conference, the Company’s Global Vice President Chen Hongze Will introduce professional electric tools to the Chinese market. Previously, the company's factory in Suzhou reached an annual output value of 1 billion US dollars, but these Chinese-made hardware tools are all sold to Europe and the United States. Nowadays, the company has begun to pay attention to the Chinese market.

China's manufacturing industry has consistently occupied the highest investment in foreign investment, with an average of more than 60%, and investment has continued to rise. With the new round of world industrial transfer and the formation of the international division of labor, the world's manufacturing industry has transferred to China on a large scale, and the speed and scale of foreign investment in China's manufacturing industry has been greatly accelerated.

At present, the characteristics of China's hardware brands and technology is China's hardware weaknesses in the development of China's hardware industry, the National Federation of Industry and Commerce Hardware vice president Fu Lin said that China's hardware exports only earn 3% of total exports, not only Only the issue of technology content, but more importantly brand issues. The brand includes a lot of content, including services, reputation and so on. Reputation is golden, and honest business is fundamental. If we produce hardware products that don't carry people's brands, but sell them under their own brands, they can also be sold at the same price as OEM sales. Then our GDP does not know how much to turn over. The development of the production and marketing of China's hardware industry must follow the domestic and international trends towards internationalization, and the new marketing ---- to stimulate the development of enterprises, to create an international concept. At present, China’s hardware products have hardly any international brands.

Industrial regionalization is a national condition and is also a feature. China has a vast area. The conditions for economic development in each region are quite different. The hardware industry also has obvious regions. This is related to China's national conditions and is also a feature of China's hardware industry. At present, the Yangtze River Delta and the Pearl River Delta have become China's fastest growing economic regions. In recent years, the Yangtze River Delta Economic Zone has become the fastest growing area for foreign investment. Under this situation, the Jiangsu hardware industry has a huge advantage. This kind of advantage can be maintained and promoted through the expansion of the hinterland.

The combination of market and industrial region is that development needs to be marketed must be linked to local needs and industrial development. The hardware market cannot be an exception. This is the need for the development of a socialist market economy.

The Hardware Industry's Advantages Tool Hardware Requirements Increasing With the continuous improvement of China’s status in the world, more and more countries around the world have begun 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.

At the same time, the quality of hardware products will increase, and the requirements of international markets for China’s hardware products will gradually evolve and change. There will be higher requirements for the quality, packaging, and delivery terms of Chinese products, and even gradually extend to the production process and product development. Products are combined with environmental protection, energy resources, and the human environment. The huge market and central position attraction will further attract the hardware manufacturing center of multinational companies to transfer to China. The integration with foreign companies will continue to enhance 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.

The cooperation between enterprises is increasing. From the perspective of competitive behavior, the cooperation between resource sharing among enterprises is increasing. On the one hand, manufacturers have strengthened control over retail terminals, and strive to reduce sales links, save sales expenses, and make sales channels more professional. The corporate sales model is developing in a direction that can adapt to multiple markets at the same time. On the other hand, the development trend 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 in the price competition that was previously dominated by manufacturers. 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. 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, although the foreign investment into the Chinese hardware market, the Chinese hardware market is also in foreign countries.