Solve the problem of how to find a way for a hardware company in the era of meager profit

The reshuffle of the hardware industry will prompt the advent of the low-profit era, and the shuffling of the low-profit era will be even fiercer. After shuffling, due to more marketization and more intense competition, shuffling will continue. After many rounds of shuffling, the hardware industry is bound to be like the home appliance industry, and its profits are even lower. Xiao Bian believes that in the era of meager profits, in the face of increasingly fierce competition in the hardware market, we must base ourselves on the brand, adopt a vertical horizontal strategy, and come up with a road.

1, based on the brand

Brand building, most SMEs are difficult to establish, most rely on imitation and OEM production, most of these companies will be eliminated, the actual object of shuffling out, then to the late, the remaining majority are strong, brand To build a better company, in fact, the development of self-owned brands is a strategic direction for enterprises, that is, in the long run, we must base ourselves on our own brands, and realize from OEM (origin processing) to ODM (origin origin design and production ) Upgrade to brand marketing, and gradually enter high-profit links such as marketing channels and brand operations.

2. Vertically build a stable industrial chain

According to statistics, among the top ten most effective in using cost reduction techniques, there are six items related to the supply chain: procurement negotiations, early suppliers, leveraged procurement, joint procurement, DPF, and centralized procurement. Luo Baihui, head of the International Die and Hardware Plastics Industry Suppliers Association, believes that hardware companies need to work hard to cultivate the supply chain and work together with suppliers to create a stable industrial chain to compress their own capital, improve product qualification rate, and accelerate The speed of capital turnover to ensure that each has its own profit margins.

3. Open up a diversified market horizontally

It is necessary to increase the implementation of the “going out” strategy, and guide and encourage powerful hardware companies to establish 'China Hardware Industrial Park' or 'production and processing base' in Central and South America, the Middle East, Eastern Europe, Africa, and South Asia. Resource allocation opens up diversified markets.

4. Promote the construction of industrial cluster service platform

The industrial innovation platform serves small and medium-sized enterprises in industrial clusters with weak technology and product development capabilities and low management standards. It provides comprehensive innovation services for enterprises, enhances their innovative capabilities and technology, management, and management levels, and accelerates structural upgrading of industrial cluster export products.

In the era of meager profits, companies must compete in different market environments. For example, they have to rely on brands to take vertical and horizontal strategies and come up with a road.