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The characteristics of high-speed development of domestic hardware industry

Update:30-09-2019
Summary:

1. The polarization of hardware companies will further […]

1. The polarization of hardware companies will further intensify
The next few years will be the high-speed shock period of the hardware industry. The direct consequence of this high-speed shock is that the current trend of polarization in the hardware brand camp has expanded. It is expected that there will be absolutely no more hardware companies that can truly survive in the market in the next few years. However, this high-speed shock in the hardware industry will bring huge opportunities, and the result of the shock will make the market operation more rational.
2. The sales channels will undergo profound changes, and competition among channels will become increasingly fierce.
On the one hand, manufacturers have strengthened the control of retail terminals, strive to reduce sales links, save sales costs, and make sales channels develop in a specialized direction. The sales model of enterprises will develop in the direction of adapting to diverse markets at the same time. On the other hand, the trend of the development of the sales industry has led to the rising status of large chain stores, enhanced control over the industry, and participation in price competition that was previously dominated by manufacturers. With its broad market coverage, procurement scale and cost advantages, large retailers will increasingly control their production companies in terms of product pricing and delivery. At the same time, the requirements of China's hardware products in the international market will gradually develop and change. There will be higher requirements for the quality, packaging and delivery deadlines of Chinese products, and even gradually extend to the production process and product research and development, and the products and environmental protection. , energy resources, humanities and environment combined.
3. Market competition will shift from price-based to high-quality, high-tech products.
With the deepening of competition, the profit margins of all stages of the hardware industry chain are being compressed, and the space for price reduction is decreasing. More and more enterprises realize that price competition cannot establish core competitiveness alone, and it is not the direction of long-term development, so as to explore new development paths. Many hardware companies have increased their technical investment, developed new products with high technology content, differentiated products as a long-term solution for enterprise development, sought new market demand, and established new economic growth points to achieve enterprise Continue to develop.
4. The integration of domestic and foreign companies will further accelerate
In order to improve their own strength and expand the international market more quickly, domestic hardware companies will accelerate the integration with foreign companies through various means to improve product quality and enhance competitiveness. While continuing to expand the markets of traditional countries such as the United States and Japan, it will also bloom in Southeast Asia, the Middle East, Russia, Europe, and Africa. In general, China's hardware industry will continue the momentum of structural adjustment, but at the same time there will be some bright spots. The polarization of hardware companies will intensify. Some enterprises that do not adapt to market competition will withdraw from the market competition through different channels, and the hardware giants will gradually surface.

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