It is reported that the cost of raw materials is one of the factors that determine the market price of hardware products, and is also a factor of profit. "In the case of rising prices of raw materials in China, the Chinese lock industry can actually reduce the price of its own products. This is a miracle in the entire hardware industry." The Spring Festival is coming, the reporter took the 2010 The attention and doubts of China International Hardware Exhibition (CIHS'10) came to the organizing committee of the exhibition, and the spokesperson of CIHS'10 introduced the topic to the lock industry.
Most of the raw materials for traditional locks are zinc and copper. In order to reduce costs, many lock companies have replaced the zinc used in the product with aluminum or aluminum alloy as much as possible. In the market, the price of aluminum is similar to that of zinc, but aluminum is lighter than zinc, so that the same amount of aluminum or alloy can make more locks. The cost of the product is reduced, and it does not have much impact on the quality of the lock itself.
“From the second half of 2008 to the first half of 2009, the prices of raw materials such as copper and zinc, which were used in large quantities in the lock industry, have risen sharply, resulting in the lock industry that has not been high in profit margins. It has encountered an unprecedented dilemma. The company has been unable to work for a long time, or is in a semi-discontinued state," said a CIHS'10 spokesperson.
“But since the second half of 2009, in the relatively concentrated area of ​​Wenzhou and other lock companies, manufacturers have actively improved the raw materials used in the products.†The speaker raised the tone.
"Under this kind of product innovation efforts, the price of lock products has decreased in the case of rising costs, which has brought great market competitiveness to the enterprises, and promoted these lock enterprises to quickly get out of the predicament." The spokesman went on to say, "Now, the Chinese lock industry has basically got rid of the impact of the financial crisis.
However, compared with developed countries in Europe and America, China's lock industry is still relatively backward, and in September this year, the upcoming 10 years of China International Hardware Show will provide a new exchange technology for lock companies. A good platform to improve product quality and expand overseas markets. In the future, we will also hold a special exhibition of locks. â€
All along, the marketing channels of China's hardware industry are mainly export-oriented. After the financial crisis broke out, international demand fell rapidly, and orders fell. Chinese hardware companies, including lock companies, were collectively in trouble.
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