Home Appliances and Hardware: Two Worlds in and Out

In the Yiwu market, hardware is an industry with a high degree of extroversion, while the home appliance industry is relying on the growth of the local market. However, the hardware appliance industry association formed by these two industries is one of the leading industry associations with nearly 2,000 members in Yiwu.

In recent years, as the popularity of the Yiwu market continues to improve, Yiwu hardware and electronic appliances quickly enter the international market with their advantages of high quality and low price, and their export volume has grown rapidly. At present, most of the production enterprises on the Yiwu market have foreign trade and export business. Sales of hardware tools, locks, and small household appliances have turned to foreign trade, and products have been sold to more than 200 countries and regions. Wal-Mart, Metro and other international supermarkets have already taken Yiwu market as a purchasing base for hardware appliances.

From 2001 to the present, Yiwu Hardware Appliance Industry Association has more than 8,000 business households and more than 1900 members, and its member products are sold in more than 200 countries and regions.

Home Appliances

In the low-profit era, Yiwu’s domestic appliance industry survives

Different from the export-oriented type of the hardware industry, Yiwu's home appliance industry is relying on the domestic sales industry in Yiwu.

In the past 20 years, Xinhong Appliance, which was founded by Yao Xinhong, has always been one of the highest-recognized home appliance stores in Yiwu. 10 years ago, Yiwu North Union appliance market is still thriving; 10 years later, along with Suning, Gome and other home appliance chain giants have settled in succession, Yiwu appliance market continues to grow, and many household appliances like Xinhong appliances shopping mall began in the cracks In survival.

See policy to eat, household appliances industry market trends changeable

From 2011 to 2012, the days of Xinhong appliances have been harder than in previous years.

As a downstream industry of the real estate industry, the continuous real estate control policy is just like Mount Tai pressing for the home appliance industry, which has crushed many small home appliance dealers. “New home renovation customers and project engineering customers account for the bulk of our sales customers, and are also major profit growth points.” Yao Xinhong told reporters that compared to Yiwu, it is still relatively lucky that a new countryside construction in full swing is for Yiwu. The home appliance market has injected a lot of vitality, to a certain extent, saving the home appliance industry.

“Since the past two years, the sales of home appliances have been affected by policies. For example, policy subsidies for 'home appliances going to the countryside' and 'replacement of old ones' are very affordable for consumers. Most consumers will This type of subsidy product was chosen. At the end of last year, the policy of “changing the old for new products” was stopped. This year we still have some impact on the sales of our home appliances.” Zhu Yun, sales manager, said that “home appliances going to the countryside” is mainly targeted at rural residents and “replacement "There is no ** restriction, the scope of application is wider, and more consumers are attracted.

In addition, the "energy-saving subsidies" activities launched in June are expected to have a certain impact on the home appliance market. In June of this year, the National Development and Reform Commission announced on the official website the list of enterprises and products for energy-saving flat-panel TVs, air conditioners, washing machines, refrigerators, and solar water heaters that are "Energy-saving products benefiting people's projects." According to the relevant regulations, consumers who purchase energy-saving products with the “Energy-saving Products Benefiting People Project” logo can enjoy energy-saving subsidies ranging from 100-400 yuan.

Small home appliances market was snatched by e-commerce "half of the country"

"The home appliance industry is in the era of low profit." When talking about the current state of the Yiwu home appliance market, Yao Xinhong described it.

It is understood that the home appliance industry is different from other industries, and there are few fake and shoddy products. Whether it is a hypermarket or a small seller, the same brand, the same model, only the price and after sales can be higher. Consumers are also very practical, which one buys which price is lower. This is also the main reason for the price competition in the home appliance industry entering the white-hot stage. Under the present pattern of low profit, even home appliance chain giants like Suning and Gome have little advantage.

In the past, the home appliance industry only sold a few large items, but now the sale of small household appliances is booming. Only one kitchen, from the past, "the three old" (hood, gas stoves, rice cookers) developed to the current Soymilk, juicer, microwave and other 30 or 40 species. However, this market for small household appliances was quickly seized by e-commerce. "Basically, in addition to refrigerators, televisions, air conditioners, and other large-scale logistics-based, after-sales and other reasons is difficult to shake the domestic appliance market, some small home appliances have been occupied by e-commerce."

New Rural Construction and Marriage Economy Pull Consumption of Household Appliances

Fortunately, Yiwu’s market cake is still growing. It is understood that the demand for home appliances driven by the new rural construction is a huge consumer market. Taking an ordinary family of three as an example, a full set of home appliances including televisions, refrigerators, air conditioners, etc., will cost at least 20,000 yuan or more. As an important part of the wedding economy, the amount of home appliances consumed often ranges from 20,000 to 50,000 yuan. However, this part of sales is mainly concentrated in April, September, November and other peak seasons.

Zhu Yun said that today's consumers are very rational in the purchase of home appliances, and their price and functional requirements are also very clear. There is very little impulsive consumption. “In the past, some consumers purchased a home theater when purchasing home appliances. However, the expensive audio equipment moved back home and the opportunities for use are very poor. Now, except for some consumers who are more passionate about music. In addition to audio and other equipment for the audio-visual room, there are not many consumers who purchase audio equipment alone."

Hardware articles

Domestic sales meet resistance, the hardware industry quietly layout foreign markets

Wang Fanglun is a major player in the lock industry in Yiwu Hardware Market. In 2007, Wang Fanglun spent a lot of money to buy out the “505” trademark right from the Shanghai advance lock factory. Relying on the “505”, a market-recognized old brand, Wang Fanglun began a massive expansion in the domestic market and continued to nurture his own brand. After several years of painstaking efforts, he not only established a sales network with more than 200 first and second-tier distributors in China, he also cultivated more than 10 lock brands including Fangya and Qianjin.

Business operators use e-commerce to extend their "tenacity" abroad

In the first half of this year, the sluggish international trade environment caused many hardware operators to encounter the "winter" of foreign trade industry in advance.

"There are few market orders, and the popularity is not high. Even if there are old customers placing orders, the number is also reduced a lot compared to previous years, and the purchase price is also delayed. The many hardware operators in the Yiwu market began to look to the domestic market." Perhaps Affected by this part of the impact of foreign trade to the domestic market, may also be affected by the impact of domestic real estate control policies, Wang Fanglun felt that the domestic share of hardware products showed a downward trend.

When everyone turned to the domestic sales business, Wang Fanglun began to lay out foreign markets. "Last year, I obtained more than 1 million yuan of foreign orders through foreign trade e-commerce, which shows that our products can be sold at a good price in the foreign terminal customer base. Therefore, this year I increased the investment in this part of e-commerce. "Like many traditional enterprises, Wang Fanglun finally chose e-commerce as the main position to open up the foreign trade market.

The show helps the hardware industry to break the difficulties of foreign trade

In addition to the identity of the boss of the lock industry company and the party branch of the trade association, Wang Fanglun is also the deputy director of the organizing committee of China International Hardware & Electric Fair. In his opinion, the Hardware Appliance Expo brought many benefits to the hardware industry in Yiwu. “I myself participate in the Canton Fair, the Hardware Fair and so on every year. The large and small exhibitions will run for 78 years a year. At the exhibition, not only can I promote my new products, but I can also get a general understanding of the dynamics of the domestic and international hardware industry. So that they can change their own production and business strategies at any time."

Of course, the show harvested not only information but also large orders. "Almost every exhibition can get hundreds of thousands of dollars of orders. As for intention orders, it is even more impressive." Wang Fang Lun said.

"This year's hardware market has a very special phenomenon: orders on the market are bleak, but orders are frequent at the show. Like Yiwu's leading company, Xintian cookware, in April the Hardware Appliance Fair, orders have not been completed." For this Phenomenon, Wang Fanglun's analysis may be related to the timing of the show's adjustment. “In previous years, it was held in a staggered manner with the Canton Fair's extension period, and this time, the hardware and electronics expo has been linked to the Canton Fair's exhibition period, and taking a trip to Yiwu to participate in the exhibition has also become a choice of many Canton Fair professional buyers.”

Improve overall strength and meet new opportunities

"This year's overall environment is already the same. Whether it is domestic sales or foreign trade, the hardware industry has been hit by no small impact. But as a company, what we still have to do now is to increase our own strength so that it will be possible for the economy to pick up. Quickly attack and seize the largest cake in the market.” Wang Fanglun told reporters that at present, many companies in the hardware and electronic appliance industry in Yiwu are actively improving their hard and soft strength. On the one hand, it is to improve production equipment, increase the degree of mechanization of production and the production capacity of enterprises, and expand sales channels; on the other hand, it is to cultivate talents.

In order to solve the problem of talent shortage in hardware companies, the Hardware Appliance Industry Association also cooperated with the municipal authorities to prepare two electrical maintenance classes and provide free training for maintenance technicians.