The impact of Japanese strong earthquakes on China's hardware industry?

On March 11, a 9-magnitude earthquake struck Japan, which shocked the world. The subsequent tsunami and nuclear power plant leakage accidents have brought Japan into an "extraordinary period", the economy is in a "semi-瘫痪 state", and has had a great impact on neighboring countries. Japan is an island country, and many resources depend on imports. The “瘫痪” of the Japanese economy will have a huge impact on its neighboring countries with close trade links.

In the face of this impact, the Chinese hardware industry, which is dominated by export trade, is no exception. For this issue, the world's second largest hardware exhibition - China International Hardware Exhibition (CIHS) organizer, China Hardware Products Association executive vice chairman, Ms. Shi Lanlan gave a professional interpretation.

"Although we do not want to see the disaster, but for the Chinese hardware industry, the impact of the Japanese strong earthquake is 'mixed and mixed'." Shi Li said, "On the one hand, the export of China's hardware industry and Japan. Trade, especially in the circulation sector, has been greatly affected. The hardware product supply chain has almost collapsed. On the other hand, the disaster will surely pass. Japan’s huge post-disaster reconstruction market will be a great opportunity for the development of China’s hardware industry.

In recent years, the total trade volume between China and Japan has reached a new high. According to China Customs statistics, the total trade volume between China and Japan in 2010 was US$301.85 billion, a year-on-year increase of 30%. China has become Japan's largest trading partner. Hardware products occupy an important part in Sino-Japanese trade, especially tools, small mechanical equipment and mechanical and electrical products.

Taking electromechanical products as an example, Japan is the fifth largest national market for China's electromechanical exports. In 2010, China's import and export of mechanical and electrical products to Japan was 177.96 billion US dollars, accounting for nearly 60% (59%) of China-Japan trade. In the same period, China exported US$121.06 billion to Japan, of which US$60.05 billion was for mechanical and electrical products, up 28.5% year-on-year, accounting for 49.6%, and exports to Japan accounted for 6.5% of China's total exports of mechanical and electrical products.

"The current situation is: the export of hardware products to Japan may be greatly affected, but this is temporary. In the end, with the beginning of the recovery and reconstruction in Japan, the circulation will return to normal, and the huge demand for reconstruction of hardware products will be revealed. In addition to tools and electromechanical products, construction hardware, kitchen and bathroom hardware, and lock products will all see a sharp increase in demand.” Shi Li said, “This will be an extremely huge market. Hope China’s hardware Enterprises should be prepared from now on, intensify their efforts to research and develop the Japanese market, and strive to develop and produce products suitable for the Japanese market, and further expand the market channels for export to Japan."

“Now there is still half a year since the opening of the 11th China International Hardware Show (CIHS'11) on September 21st, the peak of the exhibition work is coming to an end, and then we will focus on the invitation work of professional visitors, just right. At that time, the impact of Japan’s disaster should have been dissipated and began to enter the peak period of post-disaster reconstruction.” Chairman Shi said, “For the huge opportunities in the Japanese market, we will be the Japanese hardware products buyer, construction and decoration project contractor, decoration company. Professional audiences such as large building materials/home/hardware stores will hold key invitations and provide certain policy support and convenient conditions to promote the export of Chinese hardware companies to Japan."

According to Director Shi, China International Hardware Show is the second largest hardware exhibition in the world. In 2010, the exhibition area reached 110,000 square meters, with 5,500 booths and more than 2,300 exhibitors, of which 208 overseas exhibitors came from 18 countries and regions. There are 43,829 professional visitors, including 2,994 overseas visitors, from 92 countries and regions, 36.2% of European and American buyers; 40,835 domestic visitors, 30.54% are importers and exporters, 31.23% are manufacturing end users, and 20.01% are hardware agents. 12.24% of suppliers and distributors come from hardware/building materials/home chain supermarkets or markets. 72.9% of the audience came from the corporate management and decision-making levels. The world's leading retailers include Wal-Mart, Home Depot, Kingfisher Group, LG Sourcing, Leroy Merlin, Saint-Gobain, Metro and other procurement.