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Five ways to change the development mode of China's hardware industry
 

The hardware products industry is an important livelihood industry with full market competition and closely related to people's lives, characterized by small products, large markets, and large industries. In recent years, the hardware products industry has achieved sustained and rapid development, becoming a major producer of global hardware products and a production and processing center, procurement center, and important international trade hub and supply center for global hardware products. However, as a whole, imbalanced development remains a prominent contradiction in the industry, with problems such as extensive development methods, outdated equipment and processes, an excess of medium and low-end products, and a shortage of high-end products. 


The industry concentration is low, and the small, multi, scattered, and weak industry structure will still be the focus of adjustment in the future. The task of transforming the development mode of the hardware products industry is arduous, and in summary, five major transformations need to be achieved. 1. Transform from extensive to intensive. Change the current situation of small, numerous, weak, and scattered industries, enhance product processing capabilities, enhance manufacturing equipment and processes, create brands, and embark on a path of intensive development. The core of the transformation from extensive to intensive lies in improving product processing capabilities and quality levels, and taking the path of independent innovation and brand development. 2. Transform from labor-intensive to technology intensive. Labor intensive industries can also introduce modern electronic information and other technologies into the industry. The hardware industry has a wide variety of products, each with its own characteristics. It takes a technology intensive approach, increases product technology content and added value, and has great potential for growth in high-end market development. 3. Transform from quantitative expansion to qualitative improvement. At present, the current situation of product homogenization and low-level repetitive labor in the industry has not been improved. To achieve the transformation from a major producer to a strong producer, it is necessary to overcome the current situation of too many low-end products and insufficient high-end products. 4. Transform from low cost and low price to high added value and high profit margin. Low price competition among peers is a behavior that harms the industry and harms both parties. To compete in technology, the industry should start with the connotation and added value of the product itself to gain market favor, in order to maintain an orderly and healthy ecological environment in the industry. 5. The focus of exports is shifting from OEM to gradually increasing the proportion of independent brands. We need to further consolidate and expand the international market, increase domestic market development efforts, walk on two legs, and prioritize both domestic and international markets in parallel. OEM production mainly involves receiving orders, processing, and delivering, lacking market dominance and bargaining power. Therefore, it is necessary to establish independent brands, gradually increase the proportion of independent brand exports, and enhance international competitiveness.

 
Source:      Time:2021/3/19 10:57:35
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