Raw material price fluctuations, hardware locks, industry prospects

- Dec 11, 2018-

Raw material price fluctuations, hardware locks, industry prospects

Locks are the traditional industries of China's hardware products industry. Under the background of global economic integration, the lock industry strives to change the development ideas, meet the needs of consumers at different levels at home and abroad, and achieve a sound and fast development of the lock industry. Recently, the prices of metal raw materials such as copper and zinc have fluctuated downwards. In order to recover funds and reduce inventory pressure, customers have saved sales and increased sales of door and window locks. The introduction of measures to expand domestic demand eased some of the pressure caused by the financial crisis, and the domestic sales of doors and windows locks rose significantly. In short, the door and window locks have an unprecedented trend of development. Autumn and winter home decoration increased, door locks, handle locks, anti-theft locks and hinges, door suction and other products have a good trend, large volume; chain locks, motorcycle padlocks and disc locks and other products are also popular with consumers, sales considerable. In terms of export, foreign investors mainly rely on inquiry and return, and the wait-and-see atmosphere is strong.

Raw material price fluctuations, hardware locks, industry prospects

However, there are certain problems in the door and window locks. These problems also need to attract the attention of the door and window lock companies, and continue to upgrade the door and window lock industry to an unprecedented height.

Lack of brand awareness

China's lock companies are small in scale, and there are not many leading companies in locks. They can't drive the development of the lock industry very well. China's locks have low barriers to entry. Lock companies lack brand awareness and do not pay attention to the establishment of brands. Some enterprises are only family-style. Funds, manpower, technology, management and other factors constrain its development, and the awareness of the brand is even more lacking. Lock companies should strengthen brand building, enhance the competitiveness of lock companies, and regulate the lock market.

Competitive market lacks normative

At present, about 88% of the lock products in the market come from Zhejiang Province. Among them, Yiwu locals account for about 28%, and the factory direct sales ratio is as high as 70.5%. The production of low-end locks is the main products, and high-end products are scarce. As the lock industry is a labor-intensive industry, the barriers to entry are low, the degree of specialization is not high, and competition is becoming increasingly hot. The threshold is low, the market for lock products lacks normativeness, the homogenization of some products is serious, the products have no features, the fish and the dragon are mixed, and the authenticity is difficult to distinguish. As the cost of raw materials has increased, some lock companies have adopted price wars, which has increased the disorderly competition in the lock market and increased the development of the lock industry.

The lock industry will use brand as a link to innovate marketing models. The lock industry takes brand enterprises as the link, innovates the marketing model, and plays the role of traditional tangible market, specialty stores, franchise stores and various exhibition platforms; using modern networks and information technology to vigorously develop the role of online sales and trading platforms. The locks will be formed as soon as possible with the leading enterprises as the core, establish a sound cooperative supporting system, and lengthen and improve the industrial chain.