Lock market demand advantage to help the industry grow

The overall capacity of China's traditional lock market is about 70 billion, and the manufacturers are mainly concentrated in Zhejiang, Guangdong, Shanghai and Shandong. Among the categories, Zhejiang Wenzhou forms a traffic lock manufacturing base, Zhejiang Provincial Party Committee and the Pujiang County Party Committee and County Government. Under the direct leadership of governments at all levels and under the enthusiasm of various functional departments, we have walked through a unique development path.

The so-called features are cluster-type development methods. At present, there are more than 500 lock-making enterprises in Zhejiang. The number of production enterprises is large and the output is large. This is the biggest feature of the padlock industry in Zhejiang. The trend of rapid growth in the lock industry has attracted particular attention.

At present, the industry's sales are about 40 billion yuan, and the output is 1.9 billion. According to customs statistics, the average annual export growth rate of the lock industry during the “Eleventh Five-Year Plan” period reached 31%, which is twice the average speed of the hardware industry. Between 2006 and 2008, before the financial crisis, the total export value of lock products was 1.516 billion U.S. dollars, 1.963 billion U.S. dollars, and 3.589 billion U.S. dollars, respectively, with growth rates of 27.3%, 29.5%, and 82.2%, respectively. It can be seen that in 2008 the export of the lock industry reached a new peak. However, in 2009, due to the impact of the global financial crisis, the export of lock products also experienced a certain degree of decline. In 2009, the export of locks was 2.995 billion U.S. dollars, a year-on-year decrease of 16.6%. In 2010, with the improvement of the foreign financial situation, the export of locks reached US$4.003 billion, not only returning to the pre-crisis export level, but also increasing.

In the first half of 2011, the value of locks exports was 2.082 billion U.S. dollars, a year-on-year increase of 15.9%. Based on this, it is estimated that the annual export value should exceed the overall level of the previous year. In just five years, the export value of lock products has increased from US$1.516 billion to more than US$4 billion, and it still maintains a momentum of rapid growth. We have reason to have a high level of confidence in the future development of the industry, and there is still huge room for development in the lock market. However, due to the lack of brands and channels, domestic enterprises are only receiving delivery orders, who do not know how to sell products, how much they do not know, and where they sell.

Failure to understand the end market demand has led to passive production and low efficiency. So we must change this malpractice. On the import side, 2006-2008 imports of lock products reached US$321 million, US$340 million, and US$393 million, respectively, with growth rates of 34.9%, 5.92%, and 15.6%, respectively. In 2009, the import of locks was also affected by the financial crisis. The import volume was 369 million U.S. dollars, a year-on-year decrease of 6.1%. In 2010, the import value of locks reached US$504 million, an increase of 36.6%. In the first half of 2011, locks imported 273 million U.S. dollars, an increase of 16.2% year-on-year, and it is expected that annual imports will reach 550 million U.S. dollars. The speed of imports is increasing, indicating that there are more and more foreign products in China's high-end market.

The backward production process, serious overcapacity of products, low-end products, low-end and high-end products, unstable product quality, and a certain gap with developed countries, lack of high standards, high efficiency, lack of core technologies and independent intellectual property rights, and lack of world-renowned brands. In short, the lack of core competitiveness and international market leading capability, the irrational corporate structure, and irrational product structure have not brought into full play the leading role and exemplary role of the company. This phenomenon will not change and will not be sustainable in the future. Before the meeting, I visited the plum lock factory. Through the transformation of automatic assembly lines, plum blossoms have increased labor productivity by 600%. With an investment of 180,000 yuan, one to one and a half years will earn back the investment in equipment.

Regardless of their respective basic conditions or their respective scales, they all have their merits. Among them, Zhongshan’s lock companies are developing the most rapidly and have a deeper history. Wenzhou lock industry also has a strong momentum of development.