In recent years, China's cabinet Market \"cake\" is growing, and there is a very large room for improvement. The booming cabinet market will inevitably bring huge demand for hardware accessories. Hardware accessories in the whole cabinet, although the proportion is not large, but they are an important part of the cabinet, directly affecting the comprehensive quality of cabinets, use function and life, but also affecting the beauty of the cabinet.
With the improvement of people's consumption level, the demand of Chinese consumers for cabinets is also getting higher and higher, which will undoubtedly drive the development of cabinet hardware industry. The market capacity of cabinet hardware is also very huge. Industry insiders analysis, cabinet hardware is about to become a new round of kitchen consumption hot spot, cabinet hardware industry will be one of the most competitive industries in the future, and will give birth to a number of well-known hardware brands.
Production costs continue to climb
At present, the relationship between domestic cabinet hardware enterprises and their upstream and downstream is more a competitive relationship. The supplier gains benefits mainly by raising the price of input factors and lowering the quality of unit value. For cabinet hardware manufacturers, raw material cost accounts for a higher proportion of total cost, so raw material enterprises have a strong bargaining potential. Unfortunately, due to the relationship between the national economic system, raw material enterprises are generally large state-owned metallurgical groups, their market position is stable, and there are many buyers. Therefore, when the prices of raw materials such as aluminium and copper have risen in recent years, most of the costs are passed on to the production enterprises.
Offline profits are more compressed
And can the cost of cabinet hardware manufacturers be passed on to consumers through channels? The answer is very difficult. Why? Because of the fierce price competition. The technological gap between brands in the mid-end market and manufacturers in the low-end market is narrowing, so many small and medium-sized enterprises are striving to enter the mid-end market, and price competition is their most direct way. Although domestic first-line cabinet hardware brands are striving to close to the high-end market, due to the low quality of design and research, and inadequate patent protection, competitors A large number of imitation and plagiarism, making the domestic first-line cabinet hardware brand has also fallen into the quagmire of price war. Terminal prices can not be pulled up, raw material prices have risen, cabinet manufacturers offline profits have been compressed.
End Channel Messaging
Off-line, the most common terminal form of cabinet hardware products is the building materials market, that is, retailers authorized by brand merchants face consumers directly by entering the building materials market. As of December 2012, the number of building materials market in China has exceeded 10,000. Not only is the product display and sales methods uniform, but also there are many shops in a market selling the same brand of goods. The intensity and chaos of market competition can be seen.
However, it is worth mentioning that the opening of e-commerce channels is bringing changes to the supply chain of cabinet hardware enterprises. As the channels are more flat, part of the channel cost saved is beneficial to consumers, and the other part is feeding back to producers, so the pressure of raw material cost can be eased. But online channel accounts for a small proportion of the industry's sales, and online price competition is quite fierce, coupled with express delivery costs, promotion costs, channel dividends are difficult to sustain for too long.