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    Curious Home Hardware: "Millet" In Hardware Industry

    2014/12/25 10:51:00 27

    Hardware AccessoriesShoesClothing

    Since the financial crisis in 2008, China's manufacturing industry has been in a persistent crisis due to multiple factors such as market downturn, declining orders, rising labor costs and the appreciation of the renminbi.

    Despite the signs of a rebound in the international economic situation in recent two years, the domestic economy has been running at a low level, making it difficult for Chinese manufacturing enterprises to walk on exports and domestic sales.

    Under the background of the withering of the industry, the curious hardware company located in Yuexiu District, Guangzhou, is able to "expand against the potential" and expand the plant and expand its capacity in the manufacturing industry.

    Where is the secret of curiosity?

    To this end, the general manager Huang Xiang island's answer is: "deep tillage and meticulous work in the hardware market."

    "Under the tide of the Internet, the future development trend of Chinese enterprises is to become bigger and make industrial platforms, just like BAT three giants, or be specialized, and become a hidden champion in the field of subdivision, just like millet phone.

    Manufacturing enterprises should also learn from the Internet. We are the "millet" in the hardware industry.

    Huang Xiang Dao told China business newspaper reporter.

    Find big opportunities in small prices

    The curiosity is Zhong Maodao.

    Hardware apparel

    Limited company's brand, specializing in the production of clothing,

    Shoes and Hats

    The hardware accessories on the bags.

    Hardware is originally a subdivision industry in many industries, and the hardware that specializes in clothing is divided into subdivisions. Even in such a subdivision field, curiosity can sell tens of millions of dollars a year.

    Zhong Mao Island Hardware clothing has been engaged in hardware processing for over 20 years. Its headquarters is located in Shishi, Fujian province. Currently, there are factories in Fujian and Dongguan.

    Although China's manufacturing industry is concentrated in the Pearl River Delta region, Zhong Mao Island Hardware clothing is unknown, but its customers are famous for WAL-MART, Vitoria's Secret retailers and brand manufacturers.

    In 1990, in the small fishing village of Shishi, Fujian, the golden bell of Huang Xiang Island established the Zhong Mao Dao hardware Clothing Co., Ltd.

    The company took one word in the three names of the golden bell, Huang Xiangmao and Huang Xiang Dao as the name of the company, and the company's shares were also held by three brothers.

    The choice of clothing accessories as an opportunity to start business, Huang Xiang island said that Fujian Shishi was originally an industrial cluster of hardware accessories, from upstream raw material supply to mold development, to later polishing and gold-plated, with a full range of technology and tools suppliers, entrepreneurship here has inherent advantages.

    "There are many metal accessories on clothing, shoes and hats, such as zippers, buttons and buckles. These small items should have a high profit, so we will dress accessories as a breakthrough for entrepreneurship."

    Huang Xiang Dao said.

    "In the 90s of last century, the men's jacket had a metal tag, and the first product we made was this stuff.

    Through this product, we made a little money, so many people in the same village saw us and said, "we are thrive on the" tag ".

    Huang Xiang island has a fresh memory of the first product when he started his business.

    After earning the first barrel of gold, Huang Xiang Dao's three brothers concentrated on it.

    Clothing hardware accessories

    The production is extended from clothing to shoes and caps and even bags.

    Behind the founding of curiosity, it is the booming development of Fujian Shishi industrial cluster.

    At present, the Shishi excipient industry has more than 400 production enterprises, including clothing, shoes and hats, bags, household appliances, and decorative accessories for products such as automobiles, mobile phones and computers. Basically, it has formed a complete industrial chain from raw material supply to die casting, polishing, electroplating, finishing and finished products.

    According to statistics, the hardware accessories of Shishi garment accessories products account for more than 8 of the national market, and more than 1000 sales outlets all over the major cities of the country. The products are exported to more than 60 countries and regions in Europe, America and Southeast Asia.

    Stick to the subdivision industry.

    Like other small manufacturing enterprises in Shishi, curiosity has existed in the form of "small workshop" for a long time after starting a business.

    And curiosity from a small workshop pformed into a formal manufacturing enterprise, starting from 2002.

    Before and after 2002, the curious family made two major events related to future development.

    First of all, set up their own electroplating factory; secondly, go out of the small fishing village of Shishi, Fujian, and come to Guangzhou, the forefront of foreign trade.

    Although hardware parts are a subdivision industry, they also have strong technical nature.

    Products should undergo a series of processes including design, mold development, die casting, polishing and electroplating.

    Prior to that, we did not have our own electroplating factories to outsource this link to other factories.

    It is easy to lead to unstable product quality and long construction period.

    With our own electroplating factories, we have grasped the upstream and downstream chains of the whole hardware accessories and have their own competitiveness.

    Huang Xiang island said.

    Coming to Guangzhou to develop (8.47, 0.23, 2.79%) has brought more customers, especially orders from international customers, to the curiosity industry. Its sales scale has increased from several hundred million yuan to tens of thousands of dollars.

    Huang Xiang Dao

    The development of Guangzhou is an important strategy for the curious to break away from the Red Sea price.

    "Fujian stone lion" as a hardware accessories industry cluster, some manufacturers are often mixed and mixed, so we all fight price war, so that the whole industry is plunged into the red sea of low price competition.

    In order to jump out of the Red Sea, we have formulated a strategy that is in line with our own: price advantage, fast shipment and stable quality.

    Low price is a major feature of China's manufacturing industry, and is also a sharp weapon to win overseas buyers. Therefore, the curious price advantage is its first product feature.

    The so-called price advantage is not the low-end price competition, but on the basis of ensuring product quality, the price is lower than the market price by 20%.

    The significance of shipment is that it can cope with the ups and down of the international market in time.

    Therefore, many buyers require suppliers to deliver goods in time to cope with market changes.

    Thanks to the control of the entire chain of jewelry accessories processing, the curiosity can quickly reach three days to a week to produce products, and 1/3 times less than competitors.

    In the context of economic crisis, some manufacturing enterprises are often "watching the dishes".

    For high quality customers or large orders, enterprises will take good service and quality, while some small orders are often Jerry built.

    In this regard, the curious family has adopted the same standard for every customer, providing high quality products and services.

    This measure, on the surface, tends to increase the cost, but actually increases the repeat purchase rate of customers and gets a lot of repeat customers.

    At present, China's manufacturing industry is encountering a cold spell.

    Unlike many factories that shut down, curiosity has increased factory size and capacity.

    Huang Xiang island said that the magic weapon for the curiosity of rivals is to stick to the industry.

    "We have gone through a detour, trying to enter the building materials hardware, and lost millions of dollars.

    So we decided to focus on the field of clothing accessories.

    At present, we have achieved the leading position in this field.

    For example, we have special design teams besides production.

    We can design thousands of new products every year and provide customers with a variety of choices.

    Huang said that under the background of economic crisis, subdivision of industries is a natural haven.

    Expert comment

    stay

    Chinese Enterprises

    In China, many of the companies that are leading the market are probably the most successful ones in Haier.

    Haier's focus on fridge success is related to their predecessors, but it is very wise to choose one direction in the early development process.

    In all the enterprises that I have studied, most of the more successful enterprises, except raw materials trade, are taking the road of market segmentation. This is not a trend, but a situation that is inevitable in the fierce market competition.

    Take LED as an example, some people think that LED has not done well, fierce competition and declining profits, but there are still many LED enterprises successfully break through. They have no secrets. The only thing to say is to focus on a certain product or a certain type of product.

    In fact, "diversification" and "whole industry" are beautiful poppies.

    Being strong and not big is the business philosophy of small and medium-sized enterprises, and is also a rare business wisdom.

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