The Price Of Raw Materials And Shoes And Accessories Industry Need To Be Improved.

Starting in 2007, the international copper price rose by 66%; the London futures exchange's copper price rose from the initial 1800 dollars / ton to 7300 US dollars / ton, and its total price rose by more than 300%; the prices of nickel and other metal materials such as the production of stainless steel increased substantially; in 2008 May, ceramic enterprises began to raise prices. According to incomplete statistics, Foshan ceramic enterprises led the price surge, the average price increase of porcelain was 8.6%, and some of them were out of stock. Recently, Baosteel and Rio Tinto, one of the world's major iron ore producers, agreed on the benchmark price of iron ore for 2008 years.

As a result, Rio Tinto's PB powder mine, Yang Di powder mine and PB block ore will rise by 79.88%, 79.88% and 96.5% respectively on the basis of price in 2007. This result will undoubtedly push domestic steel enterprises to life and death.

These figures can be said to be shocking. The price of raw materials in the hardware industry is increasing, and the high price of hardware products is not surprising.

The mechanism of survival of the fittest brought about by the rise in price has begun to appear. I understand that in June of 2008, the largest building material market in Qingdao was closed down, and a building material dealer said that the profit of building materials has dropped to less than 10% this year. The sharp rise in prices of all kinds of raw materials is the main reason, and hardware accessories are also strikingly alarming.

When the market prospect is not optimistic and the SMEs are facing the crisis of survival, how to expand the strength of enterprises and control the direction of development becomes the main issue that must be solved by many managers in the hardware industry.

As we all know, the hardware industry has always been divided into labor-intensive industries. Low quality competition, slow development of new products and relatively low quality of employees are almost the characteristics of the whole industry.

In the domestic hardware industry, small and medium scale accounts for more than half. In this way, competition is likely to be very thin. If we can participate in competition through mergers, integration, alliances and so on, our strength will increase a lot and scale will be effective. This sentence is justified in many cases.

Hardware business managers should have a long-term vision, increase investment in early technology and talent, so that they can harvest high-quality products in the later stage, get rid of low quality and disorderly competition and stabilize their feet in the tide of market.