Mr. Li Shiping, Vice President of the Hubei Hardware and Electrical Machinery Association, and General Manager of Wuhan Guangda Hardware Tools Co., Ltd., Li Shiping. We distribute a lot of brands. In addition to hand tools, there are other categories and brands, some of which are special distribution and some are brand agents. We are Many manufacturers and brands of cooperative dealers. Hubei's hardware market is very fragmented. There are no other mature markets as standardized. There are more small and medium-sized businesses. There are more than 10,000 merchants in the hardware market, and the competition is fierce. Some relatively honest enterprises are relatively standardized, of course. There are also some companies that are doing their job. We Quanda mainly through the secondary and tertiary markets as well as in the factory, engineering to open up the market, we insist on both hands must be hard, Hubei construction hardware products used in small, up to 5%, factory use Hardware is relatively large. In the early days of the market, there were many fake and shoddy products, and gradually became branded later. We were able to radiate from provinces such as Hunan, Guangxi, Jiangxi, and Anhui, where Guangda's major radiation is close. We are also more frequently linked to the secondary and tertiary markets. Therefore, the establishment of a stable cooperation network has entered a stage of steady development. Nowadays, the concept of consumerism in the market is also changing. Enterprises with good quality and good integrity will have more development prospects. The Hubei hardware market is basically a 40% share of local people's business, and foreign hardware accounts for 60%.
Among the customers we come in contact with, private enterprise customers are characterized by changes, while large state-owned enterprises pay more attention to integrity and quality. In recent years, there have been some ups and downs in the development of the Hubei hardware industry. For example, in the 80s and 90s, the emphasis was on low prices. Now, the market will emphasize brand hard, high quality and good faith. Compared with other provinces in Hubei Province, sales of hardware are dominant, and manufacturing companies are almost absent. This has a lot to do with the country's urban planning of Wuhan, Hubei. Wuhan is a city dominated by tourism, thus forming a situation of production in East China and sales in Central China. While the development of the hardware industry in East China is relatively mature, their price positioning will be more scientific and can ensure a reasonable profit margin. We have not yet reached this stage in the development of Central China, and the profit margin is relatively weak. From our sales situation, hardware sales are manufacturers. The profit margin is relatively more significant than that of PLT.
In the country, some hardware manufacturing companies are very much in compliance with the rules and can protect the rights and interests of local distributors and agents. For example, billions of foreign companies are very strict with rules and never cross dealers to sell goods. Manufacturers, they will also recommend to the local dealers to docking; and some companies do not respect the dealers, copy the dealer's posterior, and dealers, agents to compete customers, which is very unethical business It is a practice that is detrimental to manufacturers' cooperative relations. Our distributors and agents are very reluctant to cooperate with such manufacturers. At present, the distribution channels of the hardware industry cannot be developed into a strong channel to control the market direction as the Home Appliance
industry. When the manufacturers are unilaterally infringed on distribution, the agents are still unable to counterattack and can not reasonably protect their own interests. They can only choose when the manufacturers violate the regulations. The way of canceling cooperation can't make up for the losses. This is also the performance of the current unbalanced development of the channel industry in the domestic hardware industry. Now the competition between brands, some brands are based on quality as the basis of competition, and some brands achieve competitive advantage by developing more comprehensive categories. Compared with a generation of businessmen in Zhejiang and Zhejiang, Hubei businessmen are more conservative and are more than willing to leave their homes. Therefore, Hubei people tend to be more stable rather than rapidly expanding.
There are many hardware brand manufacturers have also come up with very attractive gimmicks and slogans, hoping to quickly expand the market, but as a dealer with many years of market experience, to see this phenomenon is more clear and rational, for the dealer to send a car, Returning to Gao Liâ€™s tactics will have reasonable judgments. The brand market is not just relying on a big slogan. It is mainly due to hard work. Therefore, no matter how the market is changing, the nature of the market remains the same. Our hardware industry also needs to absorb more. Better people, but young people nowadays like to pick a good work environment and good treatment, and can not persist for a long time in the hardware industry working environment, which is a new generation of talent needs to think and adapt.
Mr. Chen Liqing, Vice President of the Hubei Hardware and Electrical Machinery Chamber and Manager of Shanghai Huagong Wire and Cable Zeguo Branch We have a wire and cable factory in the hometown of Taizhou, Zhejiang - Zhejiang Sanjia Cable Co., Ltd. (Shanghai Huadong Wire and Cable Factory Zeguo Branch), manufacturing SBE, SBEB, SBELB, SBEL and other copper, aluminum, double glass wire and BV, BLV, BVVB, (RV-70), (RV-90), RVV and other models of wire and cable, and passed China The quality certification center 3G mandatory certification mainly provides products for our sales.
In recent years, the competition in the hardware and electronic machinery market in Hubei has been fierce, and the difficulty of operation has increased. The Zhejiang home has just been approved for planning as a town-level city and has great potential for development. Therefore, much energy will be transferred to hometown in the coming year. Our wire and cable products have low technological added value and low competition threshold. Therefore, more and more people are doing, and the market competition is more intense. We also consider the transition and hope to make high-tech value-added products to improve their own competition. Strength, of course, we will carry out market research before we put into production, customized according to the needs of users.
In the first two years of the economic crisis, raw material prices fluctuate, and our copper material inventory value has fallen by half, but we have been sticking to our own responsibilities and believe that the market will eventually turn over. In the course of development, companies will face the pressure of some funds. We have always been relying mainly on our own funds and bank loans, and we have not used loan sharks. This avoids many high-risk loans and has thus smoothed out the economic crisis.
Our hometown is a welding machine production base. Our factory is now also producing a sandbag line in the welding machine. We plan to do some cooperation and cooperation in the welding machine professional exhibition. In short, the market has changed dramatically, but we believe that as long as we follow the rules of market development to adjust our strategy and follow the trend, we can certainly achieve steady development.
Mr. Zhang Yongjun, Vice President of Hubei Hardware and Electrical Machinery Association and General Manager of Wuhan Bocheng Machinery Equipment Co., Ltd. We Bocheng Machinery Co., Ltd. is the main agent of electric tools for all major famous brands in China. Tools and machinery products belong to products with low technical content. very competative. We have achieved sales of 50, 60 million and more than 200,000 per day. Annual sales are relatively stable.
Manufacturers' appropriate goods may promote price transparency and have relative benefits to industry development. In the future, competition in the industry channels relies on quality, on the one hand, on advertising, and on the other hand, agents also need to rely on efforts to promote; if Persian tools are produced in Hangzhou, they have a high degree of advertising popularity and high customer awareness, so people will also look for Purchasing this brand, the market is also developing better.
We have Bocheng in Hubei Modern Hardware & Electrical City and Hankou and other markets have branch layout. With the expansion of the city, Hubei Modern Hardware City has developed to a more mature stage, but also brought a lot of good for market merchants. Because we have been operating for many years, our reputation is relatively high. Every year we have new customers who cooperate with us. Now that integrity has become an important factor in achieving cooperation, the future market development will inevitably be based on quality, integrity, and service as the most important factors. Both Rudder Exit Market and Hubei Modern Hardware City have very favorable geographic advantages. However, due to the comprehensive market, Rudderâ€™s outlet market will have better advantages and popularity. Hardware and electromechanical industry in the industrial and decoration, etc. accounted for a small proportion of the sales of hardware products, the source of profit or the main supplier of the factory, supplemented by wholesale. The hardware channels and networks are very valuable, but the construction channels need energy, capital, and time to accumulate over time. Therefore, the market matures by businesses, and the market also allows businesses to grow better.
Fenghua Jade Motor Co., Ltd. , http://www.homeappliancemfg.com