Export-oriented development of hardware manufacturing industry

As China continues to integrate into the global economy and its economic power grows rapidly, it has become one of the most dynamic regions in the world. With a well-established economic infrastructure, a mature industrial system, and relatively low labor costs, China holds a clear comparative advantage in becoming a major global hub for hardware manufacturing. Its export-oriented development model is increasingly evident.

With an oversupply of domestic hardware and kitchen products, quality concerns have intensified, making distribution channels a critical factor in competition. As a result, the battle for control over these channels has become more intense than ever.

On one hand, manufacturers of kitchen appliances are strengthening their grip on retail outlets. They aim to shorten sales cycles, reduce marketing costs, and create more professional and efficient distribution systems. This allows their sales strategies to adapt to multiple markets simultaneously, enhancing flexibility and responsiveness.

On the other hand, the evolution of the sales sector has elevated the status of large home appliance chain stores. These retailers now exert greater influence over pricing, which was once dominated by manufacturers. With their wide market reach, bulk purchasing power, and cost advantages, they are increasingly shaping product pricing, payment terms, and delivery schedules—putting pressure on production companies.

International markets are also raising their expectations for Chinese hardware products. There is a growing demand for better quality, improved packaging, and faster delivery times. These standards are gradually extending to the production process itself, as well as environmental protection, energy efficiency, and cultural considerations. As competition intensifies, profit margins across all stages of the hardware supply chain are shrinking, limiting the room for price reductions.

More companies are beginning to realize that relying solely on price competition is not sustainable in the long run. Many are now investing heavily in technology, developing high-tech products, and focusing on product differentiation as a core strategy for growth. By identifying new market demands and creating new sources of revenue, they aim for continuous and stable development.

The marketing approaches of the hardware industry and everyday consumer goods have both seen significant changes. Unlike fast-moving consumer goods, hardware marketing typically involves bulk trade with distinct sales characteristics and channel structures. For instance, industries like basic chemical chlor-alkali, machine tools, dairy products, and tires all exhibit unique patterns. New product launches often require careful follow-up, and the following features define hardware marketing:

First, the target audience: Hardware marketing usually targets specific industry users who make institutional purchases rather than individual consumers. These buyers are focused on productive investments, which makes their purchasing behavior quite different from that of regular consumers.

Second, product structure: The hardware industry is highly specialized, often involving complex and integrated systems. Whether it's construction machinery or central air conditioning, the level of technical expertise required is high, along with substantial capital investment.

Third, the marketing model: Due to the technical complexity of the products, direct sales are often necessary. While many domestic dealers rely on market opportunities, their overall quality tends to be inconsistent. Most distributors act as sales representatives, engaging directly with end users, providing technical support, and working closely with manufacturers. To maintain stability, companies must focus on direct sales.

Therefore, the marketing approach should center around the end user, driven by project orders, and guided by the manufacturer’s strategic direction.