China's hardware industry has broad potential for development

Over the past 30 years of reform and opening up, the achievements made by the hardware industry in China are obvious to all. Today, China has become an important producer, consumer, and exporter of the hardware industry in the world. China has successively formed about 30 hardware industry technology centers and product centers. These centers are not only the vanguard of China's hardware industry, but some of them have become the vanguards of the world's hardware industry. Shangpu Consulting believes that the development potential of the hardware industry is huge, and the future development trend is mainly reflected in the following five aspects.

First, accelerate the integration of domestic and foreign enterprises. At present, China's hardware industry is the main force of private enterprises, they account for about 70% market share, the domestic hardware industry enterprises present a "small, zero, scattered" situation. In order to improve the quality of products and their own competitiveness and to further explore the international market, domestic enterprises must accelerate the integration of domestic and foreign companies through various means.

Second, intensified the polarization of corporate development. In the next few years, the hardware industry will enter the high-speed shock period. The consequence of the shock is to expand the polarization trend of the hardware industry. After the shock, the number of companies that can survive will be lower than the current number, and the “small, zero, scattered” situation will become an intensive and large-scale operation, and the market operation will be more rational.

Third, the current price-based market competition has gradually shifted to high-quality, high-tech content products. With the deepening of market competition, the profits of all stages of the hardware industry's industrial chain are declining. The price competition cannot become the core competitiveness of the public companies, and must be changed to continue to develop. Many hardware companies have increased investment in R&D, researched and created high-tech products, demanded new market demands, and realized the sustainable development of the company.

Fourth, sales channels are specialized, and competition among channels is becoming increasingly fierce. The supply of domestic hardware and kitchen products exceeds demand, and the competitive pressure is huge. As the key competition factors, the sales channels become the focus of competition among all parties. In order to reduce the sales cycle and save sales costs, hardware manufacturers will increase the control of sales terminals and gradually increase the sales channels.

Fifth, further solidifying China’s status as a world-wide hardware manufacturing center. With the rapid rise of China’s economy, it has become the most dynamic economic region in the world. China's economic facilities are perfect, the industrial development is mature, the labor cost is low, and it has the precondition for becoming a world-wide hardware manufacturing center. China is the most populous country in the world. The demand for hardware and kitchen products is huge. The huge market will further promote the transfer of hardware manufacturing centers to China.

Hardware companies should seize this opportunity for development to be our own strong market potential. The Chinese hardware industry has a vast space for development, which means that the future of China's hardware industry will be unlimited.