Analysis of Hardware and Electrical Products Price and Trend in China in 2011

After China's accession to the WTO in 2003, the Chinese mechanical and electrical industry entered a fast track, and its investment and export both flourished and reached new heights. The financial turmoil of 2008-2009 was like a heavy blow to many hardware and electromechanical companies, giving hardware and electromechanics people a chance to think again. The bubble in high growth is difficult to withstand the industrial crisis, so how can we stand in the market competition? Lost place? To answer this question, we must understand the trends of world politics and trends in the development of the industry, as well as new forms, such as the impact of e-commerce on the hardware and electronic machinery industry.

Energy: China is developing a new resource tax system. With the relative reduction in China's energy resources, the pressure on energy prices continues to increase. The new resource tax system will inevitably increase the taxation of high-pollution and high-energy-consuming enterprises, and this part of the tax burden will eventually reflect the cost.

Environment: Producing products that meet environmental requirements requires not only an increase in the level of quality control but also an increase in investment in R&D and environmental equipment and testing equipment. Enterprises that do not attach importance to this aspect may experience environmental disasters like Zijin Mining. Ultimately led to the decline of corporate reputation and the cost of huge pollution control. Under the guidance of the concept of building an ecologically harmonious society, the government is increasingly demanding environmental protection. Previously, the way to increase by the cost of polluting the environment has become a thing of the past. Strict environmental regulations will inevitably lead to increased costs for wastewater and waste treatment. .

Since so many factors lead to price increases, in the near future, the price competitiveness of China's electromechanical products will drop sharply. How to ensure that products are competitive in the international market? In fact, in the composition of costs, we still have three factors that are not considered, that is, technology, information, and supply chain.

Technology: There is a core R&D team with tens of thousands of people. Although overall sales are not high for certain companies, the establishment of technology maintains Huawei’s product competitiveness and allows Huawei to achieve a higher profit margin than other companies. Technology is a very important aspect of product competitiveness. Intensify innovation and establish core technologies to maintain competitiveness. As we all know, Huawei has won the top spot for the top 100 companies in China's electronics industry for many years.

Information: The professional e-commerce b2b platform has received the attention of the industry. It has become a paradigm for the integration of resources in the electromechanical industry and horizontal connectivity, and has achieved very good results. The twenty-first world is an information society. The collection, sorting, extraction, and operation of information have become catalysts for enhancing the value of products. The rise of e-commerce has witnessed the importance of information for business operations. It has established a global platform for Chinese goods. On this platform, we compete fairly, and we have no fraud, only quality and price, and who have the information , whoever has mastered the customer, has mastered the initiative.