Hardware Tool Industry Development Status and Strategy Analysis

The current pattern of brand competition in the hardware tool industry in China is very unstable. In addition to the positions of Shida and Stanley occupying leading positions in mid-to-high-end brands, brand rankings in other grades are still unclear, which brings unlimited opportunities to latecomers.

Due to the low cost and fierce competition, most companies rely on lowering the price of their products to obtain the market. As a result, corporate profits are very low, and they can only reach the state of maintaining production but it is difficult to make money. The result is the product. With low prices, low added value, and low profits, companies do not have sufficient funds to sustain development. The outward trend of outward development of home hardware enterprises in China is more obvious. At that time, although there were many internal enterprises in the industry and enterprises could not progress, it was difficult for the industry to improve, resulting in unsatisfactory results. The hardware industry is gradually moving into the consumer's field of vision from the invisible brand. Low-price competition, imitation, and OEM production are limited to a certain historical stage. With the development of the industry and the upgrading of competition, the product technology content is increased, the company has independent patents and designs, and the emphasis on brand building and marketing is the long-term development of the company. The best choice.

The domestic hardware industry brand competition is relatively volatile. Shida and Stanley still occupy the leading position of high-end brands in China. The other brands' rankings are unknown, which means that other brands still have unlimited opportunities. To seize this brand's chaotic gap period, the speed of pushing into the top three brands has become the most worthwhile issue in the development of the next five years.

First of all, companies are almost always using the brand to operate, and will find out the differences between their respective grades and their main competitors as the starting point of their corporate strategy. However, many companies have tried to make such a mistake: the only difference is the product differentiation, rather than the brand differentiation. In addition to the price differences between brands, it is difficult to distinguish between brands. The market will position the brand according to the price of the product, forming: low price is the resistance, high price is high-end brand impression, which hinders the implementation of brand marketing to a large extent. This is the core issue that has caused China's domestic hardware to be difficult to achieve high-end brands.

The brand includes the core value of the brand and the external performance. The difference between brands is to show the difference between brands through positioning. Luo Baihui, a brand marketing expert, believes that brand positioning is based on the needs of the target market and its own advantages. For example, Stanley: World Tool Expert. Stan uses this slogan to highlight his position as a world tool expert. The brand's core value highlights the enterprise's 100-year strength and the company's expert identity has reached the division with its opponents. In other words, it is necessary to identify the target market, compare it with competitors, find their own advantages, and combine market advantages to express one aspect of the customer's demand characteristics, and combine with the advantages of the company to form the brand core value.

Secondly, for the kind of channel model adopted, each company should choose according to its own characteristics of the company. Judging from the current market demand and channel characteristics, the adoption of the direct sales model by mid-to-high-end brands is unrealistic, and product lines and sales will directly determine the network model. The current hardware tool market in China has a large demand for mid-range products. Basically, products can cover the second, third and fourth-tier markets. The adoption of the monopoly chain model will have the basis for market demand. For Chinese domestic hardware brands, Luo Baihui suggested that if the product line is long enough, it can try to renovate the old dealership stores, shorten the channels, expand distribution, and deepen marketing. Companies adopting the hierarchical agency model must strengthen the management of distributors, which is embodied in the management of terminal sales prices, the management of serial goods, the management of channel-based brand communication, and the management of market feedback information. The health of channels and prices will directly affect the life and death of enterprises and long-term development. Therefore, the choice of channels needs to be prudent, and the management of channels needs to be refined.

Third, the branding and dissemination of the brand must address the positioning problem for the hardware tool industry in China. What has to be solved afterwards is the relationship between the corporate brand and the product. Whether this issue can be properly resolved relates to the successful implementation of the brand strategy.

Fourth, in the field of Chinese hardware tools, enterprises’ understanding of the role of the media is deepening, but there is no concept of public relations. Luo Baihui believes that in the case of such a messy brand, ignoring the power of media and public relations will make it difficult to establish a unified brand image. We must make good use of the operation of public relations and media to accelerate the dissemination of the brand and quickly expand the brand awareness of the company. In addition to regular reports, companies need to create news events and allow the media to report on their own initiative. The best is sensational. For example, in order to guarantee the quality of products, Haier destroyed many unqualified products. The media reported that it expanded rapidly. Haier's brand recognition and reputation, such an event, our industry also exists, but do not know how to spread, how to use properly, will save a lot of costs for the brand's molding, and can quickly pull away from the opponent.

In fact, the development of China's hardware tool industry is very unregulated. If any company comes out and does something for the industry's specifications, it will become a leader in the development of the industry. For example, a certain brand enterprise will take the lead in formulating industry development standards or The drafting of industry developments dictates the development direction of the industry. Such actions can not only enhance the reputation of the corporate brand, but also have a public nature, and will make the company a leader in the industry. The influence will be very large.

In recent years, due to the fiery automobile market in the mainland, not only the domestic component factories have benefited, but also Taiwan's Dongyang, Dayi, Jiangshen, Rayleigh and Twi West have benefited. Luo Baihui, a mold specialist, stated that the domestic auto market is at a high stage of growth. Taiwanese related component manufacturers have entered the harvest stage due to early deployment. However, in the future, as the global economic climate gradually warms up, it is expected that the Taiwanese mold industry will have a chance to continue its recovery. Not only will there be opportunities for continued growth in the export market, but the domestic demand market will also gradually increase demand for end-users, and corresponding mold demand will also increase.

Taiwan's leading enterprises play a leading role in the mold industry. Their comprehensive information systems and technical level ensure the healthy and smooth development of the mold industry. However, in China's mold industry, only a handful of companies can be called leading companies. For a long time, the establishment of Chinese companies has been affected by large-scale, small-scale and full-scale operations. There is a mold production workshop within the company, and the production mold is itself Enterprise service, which has resulted in few professional mold factories, even if there is a professional mold factory, the scale is not great. At present, the manufacturing industry represented by the automotive industry is developing at a rapid rate. The market is in urgent need of large-scale molds with precise and stable performance. The efforts of large-scale mold companies such as China FAW Mold Manufacturing Co. have played a leading role in the industry.

In the near future, the Taiwan Precision Machinery and Mould Strategic Alliance officially entered the military under the support of the Tainan County Government, the Precision Machinery Center, the Plastics Center, and the Metal Center. It promotes communication, cooperation, and research between production, education, and research, and helps businesses to make good use of domestic research. The unit's R&D energy, the development of high value-added machinery and equipment, joint procurement, co-marketing, and integrated R&D will play an important role in promoting the development of the Taiwan mold industry.