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Negative factors to be eliminated in hardware Industry

Author:screwdriver bits Comefrom: Date:6/20/2019 2:57:16 AM Hits:0 Comment:0

After several years of industry adjustment, China's hardware industry has entered a relatively stable stage of development. However, in this relatively stable stage of development, industry insiders said that there are still some non-positive factors hindering the smooth development of the industry, the existence of these negative factors will not be resolved, the hardware industry will be difficult to further develop. So, what are the factors that affect the progress of the industry at present? First, it is difficult to determine the thin profit point as a traditional industry field, hardware tools industry entry threshold is relatively low, manufacturers, dealers can easily enter it. It is precisely because of its low threshold that most enterprises can not get higher profits through the cultivation of professionals and innovative products in the process of innovation and reform. At present, the leader of hardware tools is monopolized by several giants, and even if the new enterprises and dealers put into the market, but because of their lack of personnel and innovation, they can not maintain the profitability of the hardware industry for a long time, even if the development is good, it is only a small profit operation. Second, credit sales should not alleviate the fact that according to one Mr. Zhang, who has been engaged in the distribution of hardware tools for many years, the retail industry of their hardware tools is a small business, and the quality of the business depends entirely on upstream support. As a dealer with annual sales of about 10 million, he has accounts receivable of more than 1 million a year. However, as a hardware manufacturer with annual sales of 10 million, it has accounts receivable of as much as four or five million. The capital risk is very great, one of which is careless, which will lead to the collapse of the enterprise, let alone any permanent development. In addition, unable to adapt to the requirements of the Internet age, unable to create new sales channels will affect its long-term development. Under the impact of the Internet tide, various industries have presented a new development model, which is characterized by the combination of online and offline three-dimensional sales model. When a hardware tool enterprise can not set up its own e-commerce channel under the new social requirements, then its development prospect will be imaginable and difficult.

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