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Industry Information
Raw material price increase is an opportunity for domestic hardware companies to improve
2011-3-9 10:46:07

From the perspective of the hardware industry, the prices of hardware raw materials have been rising since last year, and the increase is particularly large. Due to the unbalanced supply and demand of raw materials, the prices of hardware products have continued to rise. Expert analysis shows that the current rise in raw material prices is a concrete reflection of economic laws in the hardware industry. The global economic recovery and the continued strong growth of the Chinese economy are the fundamental reasons for the rise in metal raw material prices. Rising raw materials and rising costs are long-term opportunities for the industry to improve.

Industry reshuffle

The price of hardware products has been rising all the time due to the rising prices of raw materials, which will lead to a positive situation of survival of the fittest and new products. The price of raw materials is reasonably floating within a certain range, which is of great benefit to the industry's production capacity and industry re-integration and reshuffle, product price adjustment, helping companies to get out of the strange circle of low industry entry thresholds, low-price product competition, and waste of resources for many years. . Two or three years ago, the price of metal raw materials began to rise. By the first half of 2006, prices had risen even faster, and some prices rose several times within a month, which surprised enterprises. Long-term low-cost and low-price competition Profitable hardware companies are even more difficult to parry. In the past, low-price competition has often made the company's efforts on low-end products. Product assimilation is serious, and the advantages are invincible and the inferior, which hinders the overall improvement of the industry. Due to the long-term low-cost competition in the hardware industry, most companies rely on reducing product prices to compete for the market and minimize profits. There are serious consequences such as low product prices, low value, and low profits. Therefore, enterprises lack support for sustainable development and cannot progress. , The industry can not improve.

Opportunity for industry promotion

After the cost of products has increased significantly, Chinese hardware companies have paid more and more attention to innovation, increased product technology content, and accordingly increased sales prices in accordance with the principle of high quality and superior prices. Product quality and grades have increased rapidly, and the industry's competitiveness has greatly surpassed the past. Under the pressure of rising raw material prices, in order to survive and develop, enterprises have to find ways to change their strategies and adapt to market conditions, so the hardware industry has gained opportunities for improvement.

It seems that under the new market situation, companies in the hardware industry have increased product added value and profits by improving management and developing new products. They have opened up domestic and foreign markets, and truly formed a good situation of high quality and good prices, and the fittest. People surprise.