On the status of China's hardware industry in the world

With China's accession to the WTO, China's hardware industry has achieved an important position in the world. China's hardware has taken its place in the world and is on the same footing with the global hardware leader. Many world famous hardware companies have entered the Chinese market. We will coexist with them for a long time, which undoubtedly poses absolute challenges and pressures for Chinese companies. At present, the following gaps exist between the domestic market and the international market:

Technology: The design capability and level of multinational hardware companies and processing methods are higher than ours. They have advanced design reserves, and we lack both capital and technology.

Services: Foreign hardware manufacturers take the laws of the host country as the yardstick and never engage in a promise competition. The service is very standard, not only not affixed money, but also profitability, using economic means to promote their service standards.

Field: The U.S. hardware market has a $40 billion market capacity. Products include manual and power tools, automotive diagnostic and repair equipment, diagnostic technology and related products, widely used in automotive, aerospace and other commercial areas.

Marketing Management: China's hardware management model has not yet embarked on a real agent. Management experience, management methods, and management personnel all face challenges; market management, price management, and promotion management are all at a medium or medium-high level.

Funds: The development of enterprises is very difficult, often forced by helplessness and caught in a price war. At present, it is difficult for China's hardware manufacturers to get financing. Even if they can finance, the scale is very limited. Debt management, if you want to get close to the market, you also lack the ability to transform, the products are on the same level.

Brand: Foreign hardware companies that have entered China are internationally renowned multinational companies. They have good reputation and can provide users with quality products and perfect services. Chinese companies have a high degree of familiarity with languages ​​and markets, and they also have a relatively good understanding of the needs of culture. Therefore, it is more likely to establish their own brands.

Scientific decision-making mechanism: Many people in the country believe that foreigners do not understand the Chinese market. In fact, foreign manufacturers are very likely to use high-paying begging for localized talents in China, willing to spend money to buy information. The establishment of effective information channels and rapid reaction of the decision-making pipeline, and China's hardware response to the market, often lags behind, we often lack of decision-making and delay in business opportunities.

Experts predict that China will also have a number of powerful hardware manufacturing groups, forming a number of unique and internationally renowned hardware manufacturing centers. By 2020, the proportion of China's industrial added value to global industrial added value will increase from 5.72% in 2000 to more than 10%. Exports of manufactured goods, which account for the proportion of global manufactured exports, have risen from 5.22% in 2000 to more than 10%.

Mechanism: Transnational corporations have established a modern enterprise system with clear property rights and are operational. Even if our traditional hardware manufacturing enterprises are listed, there may be a strange circle, that is, enterprises operating in a standardized manner also retain traces and imprints under traditional management mechanisms, because they are all born out of traditional mechanisms. . Such mechanisms and traces restrict the exertion of competitiveness.

Strategic planning: The products of world-class companies often give a very clear impression. Many of our hardware companies have diversified strategies, and there is excessive competition at the same time. Many domestic manufacturers and brands do not have prominent main businesses, and their core competitiveness is poor. Manufacturers must be professional and must be leaders in the product category. Chinese companies are currently smaller in size and do not respond to all the necessary tasks. Instead, they should first do the best for a class of products.

Channels: Most of China's hardware manufacturers mainly focus on the domestic market. However, the domestic market is undergoing changes. The traditional big commercial trade unions, trade associations, Hualian systems and cross-border power systems are all economic associations, waste of resources, and high marketing costs. China's hardware exports account for only a few percent of the total amount. Expanding overseas markets is just the beginning. It is necessary to go global and lack the talents and trade experience of transnational elites. The demand for the Chinese market itself has been increasing. Many foreign companies have come to China to produce. What they value more is the Chinese market.