In 2014, hardware companies will turn to the third-tier market

Behind the abstract "up" is the hardware business is getting harder and harder, the price of electricity is raised, the raw materials are rising, the overall cost is seriously exceeded, and the excess is difficult to pass downstream. When the hardware profit is gradually compressed, many hardware vendors realize the seriousness of the problem, and want to make a long-term...
Behind the "up" sound is the hardware business is getting more and more difficult, the price of electricity is raised, the raw materials are rising, the overall cost is seriously exceeded, and the excess is difficult to pass downstream. When the hardware profit is gradually compressed, many hardware vendors realize the seriousness of the problem. If we want to develop in the long run, we must re-select a new market. In this context, it is inevitable to choose a third-tier city as a safe haven.

Market mainstream turns to third-tier market

In the past five years, the construction of the professional market for the pan-home industry has gradually developed from first- and second-tier cities to third-tier cities, from economically developed regions to non-developed regions. As far as the current situation is concerned, the hardware market in the first- and second-tier cities is heavily invested, and the pace of transformation and upgrading is also relatively fast. In contrast, the size of the hardware market in third-tier cities is much smaller. Because the market size of the first- and second-tier cities is large, the area of ​​influence is wide, and the impact on the original market structure is strong, it is even more difficult for third-tier cities to re-establish a market structure centered on themselves.

However, many home and building materials markets in first- and second-tier cities have a large number of products, but the grades are not high, and most of them are comprehensive markets. There is no professional and distinctive business model. Such a situation is likely to cause disorderly competition in the industry and restrict the development of the industry. In recent years, the traditional hardware store operations have been uneven, and there are many problems in product quality and after-sales service. After extensive integration, hardware brand stores have begun to appear in first- and second-tier cities, and there is a trend toward third-tier cities. This marks the emergence of a higher-end and more complete sales system in the hardware industry, laying a good foundation for the development of the hardware industry in the third-tier cities.

At the same time, local companies in some third-tier cities are optimistic. Although they do not have a gorgeous "packaging", they are particularly active and free in the three-line hardware market. There is no dispute of "head breaking blood flow", and the "extraordinary gas" has been removed. There are a lot of "childishness" born and raised. There are quite a lot of new born calves, which are not afraid of tigers. They exude a strong attraction and mainstream the market. Gradually introduce the third-line market.

Market shuffling optimistic about the three-line market

The hardware industry is different from other building materials industries, and its products range from screws to locks, from pipes to steel. At present, the hardware market in the first and second tier cities is relatively mature, and there are considerable hardware operations.

The development of the hardware market in third-tier cities is relatively lagging behind. With the development of third-tier cities, many hardware merchants in third-tier cities are gradually on the right track, and then seek multi-channel development. However, in the process of “actively acting” and “creating the facade” of many merchants, there are still many merchants whose sales channels are still very closed and stagnated in the traditional sales methods. For example, nowadays in the Internet age, online marketing is gradually adopted by large-scale merchants, but many small and medium-sized businesses have not taken care of it. Closed channels have caused many opportunities to make new customers to be lost. Self-sufficiency has weakened the ability of these small and medium-sized businesses to resist market risks. Once the market environment changes, it is most vulnerable. Therefore, expanding sales channels and refining channels is a top priority for many small and medium-sized hardware companies.

As the international financial crisis spread from the virtual economy to the real economy, China's foreign trade exports have been greatly affected and impacted by foreign markets. Many hardware merchants' orders have shrunk sharply, and production and operation are facing serious difficulties. Not only first- and second-tier cities, but also third-tier cities. Many merchants seek transformation, export to domestic sales, and shift their development focus to the domestic market. However, the export of hardware merchants to domestic sales is also very difficult. The domestic market and foreign markets are very different. They are very different in terms of consumption habits, aesthetics, and value orientation. It is difficult to form a stable production and operation model. Building your own brand is particularly evident in first- and second-tier cities. Foreign customers pay more attention to factors such as cost and quality. In addition to dealers, most of the customers in the domestic market are direct consumers. They pay more attention to factors such as brand, product value, product style and price/performance ratio when purchasing goods.

In addition, in recent years, China's economic development has been very uneven, and consumers' demand levels are not the same. The demand level of consumers in first- and second-tier cities is relatively high, while the demand level of consumers in third-tier cities is relatively low. Unbalanced hardware companies that export to domestic sales provide entry points to the market. Therefore, the rise of the third-line market is a good news for those hardware companies that export to domestic sales.

With the advancement of the country's development of third-tier cities, the development of the hardware and building materials industry in the third-line market has become the trend of the times. As a large number of first- and second-tier cities move to third-tier cities, the demand for hardware and building materials in third-tier cities will gradually increase, and the third-line market will gradually mature. Hardware merchants should grasp the good opportunity of the rise of the third-tier cities, find a foothold in the third-tier market, stabilize the camp, and then develop.

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