China's hardware industry development must pay attention to value effect

2020-07-21 11:11:31

In the past 30 years of reform and opening up, the achievements of scale effect have made great achievements, and the society has made a lot of contributions. The hardware industry in Guangdong has developed rapidly in recent years, forming tool hardware, daily hardware, electromechanical hardware, stainless steel hardware, abrasives and hardware. The industry category, and formed a large number of distinctive industrial bases, such as Zhongshan Xiaolan locks, Yangjiang cutters. Zhongshan Xiaolan has formed an industrial cluster with locks and gas appliances as its leading, upstream and downstream products and various accessories. The hardware city of Guangdong Hardware City, Guangdong Mechanical and Electrical Hardware City and other hardware cities constitute the center of trade activities, gathering wealth and gathering, has produced a strong scale effect, which provides a strong backing for the rapid development of Guangdong. Hardware industry expert Luo Baihui believes that the marketing and development of hardware companies need to take into account the scale effect. For example, the scale effect formed by the Pearl River Delta region and the resulting benefits are obvious to all. Some large hardware companies should pay more attention to the scale effect. Value, this is the only way for the development of hardware companies.

1. Leading effect.

One step ahead, step by step. Step by step, this effect is applicable to the hardware market. In a specific environment, because a particular technology or brand is ahead of other companies in the same industry, it will inevitably drive the development of the entire enterprise. For example, hardware locks, hardware locks can be everywhere in the hardware market, branded, unbranded, and in short, once a hardware lock company has an advanced patent technology, a new product has been invented. This new product is put on the market and has achieved good economic benefits. This leading product will inevitably drive the overall development of the hardware lock enterprise and give priority to the success of the industry.

2. Locking effect.

When users move from one brand of technology to another, they will pay a certain cost for this transfer. When the transfer cost is too high and the user is discouraged, the user is in a locked state. When a high-tech product is successfully developed and won the market, it is easy to grasp the future market and take the initiative in the fierce competition. This is also applicable in the hardware market, first investing, because the hardware cost is too high, it will inevitably be discouraged by users, but once this hardware product is recognized, then this hardware product will inevitably lead the industry and promote the development of the industry.

3. Matthew effect

This is an era of winners, the rich enjoy more resources - money, honor and status, but the poor become nothing. The poor get poorer and the rich get richer. People with more friends will make more friends with frequent contacts, while those who lack friends will always be lonely; people with a reputation will have more opportunities to show up, so they will become more famous.

4. Gear effect.

If a large enterprise does not develop, it will leave the small enterprise far behind. The gear effect is also applicable in the hardware market. Some large enterprises have advantages in resources, money, connections, information, etc. Once developed, they will take a big step; while small enterprises are affected by resources such as funds, talents, and information. The development of restrictions is relatively slow, and even stops. Such large enterprises are increasingly surpassing small businesses in the same industry and gradually become the dominant players in the industry.

5. Aggregation effect.

The more companies with good performance and abundant funds, the more banks want to give their qualifications to it, this is the accumulation effect of funds. Under the financial crisis, some large hardware companies have excellent performance. Once there is a funding problem, whether it is through the bank or other companies' shareholdings will alleviate the current predicament, it will inevitably make it easier to gather funds; some small hardware companies will encounter financial problems. It is almost impossible to move. Chinalco invested US$19.5 billion in Rio Tinto, and the highest record of overseas investment by state-owned enterprises was once again refreshed by Chinalco. Although Chinalco bought a 12% stake in Rio Tinto on February 1, 2008 for US$14.05 billion, it has become the biggest loss of Chinese companies' overseas investment so far. Apart from other complicated factors, no one can deny that Chinalco is a sign that Rio Tinto is one of the world's three largest iron ore giants. The famous students are already out of the way. Chinalco is risking its blood and is still serious. Joined Rio Tinto. The better the performance, the easier it is to gather funds.

6, scale effect.

When the production of the enterprise reaches or exceeds the break-even point, it will form a scale benefit. Because any production is costly, it generally includes fixed costs and variable costs. To achieve profitability, sales revenue must be greater than production costs, and the fixed cost of this is constant, so the more production, the less fixed costs are allocated to individual products, and the more profit.

Editor in charge: Sun Gongxue

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