"Because most of our hardware companies are exporting OEMs, they have avoided the market risk of anti-dumping to a certain extent. This has somewhat weakened the understanding of the risks of foreign markets. Therefore, enterprises have not paid enough attention to this, let alone I am not prepared for any countermeasures," Zhu Xueling said.
Zhu Xueling is the director of the Productivity Promotion Center of Xiaolan Town, Zhongshan City, Guangdong Province. The center is one of the few technology R&D service organizations established at the township level in China. Xiaolan Town is China's hardware industry base, and most of its products are exported. The small town of Xiaolan, which is located in Zhongshan, is a small city with a square area of ​​only 13 square kilometers. However, there are more than 5,000 industrial manufacturing enterprises, and there are more than 300 kinds of industrial products, covering most of the categories of light industrial products. The economic structure of "small commodities, large industries" has been formed. Strolling through this small town, where the primary industry only accounts for 1.5% of GDP, the tall buildings, spacious roads and factories that have been built have made you feel that it is just a small town.
In 2003, the total economic income of Xiaolan Town was 23.5 billion yuan, and the industrial sales revenue reached 20.5 billion yuan. As the traditional industry and pillar industry of Xiaolan, the sales revenue of the hardware and plastics industry in the town in 2003 was nearly 7 billion yuan. As an important hardware industry base in the country, after years of development, it has formed a hardware industry group with locks and igniting tools as the leading, upstream and downstream products and various types of accessories.
According to the recently released market survey data of the 2003 national market share of major industrial products and industry rankings, Vantage gas appliance industry ranked first, St. Yalen nail clipper industry ranked first, Guli lock industry ranked first, Huafeng locks The industry ranked third.
According to Ou Julun of the Xiaolan Town Economic and Trade Office, most of the hardware products in Xiaolan Town are currently exported, and most of the enterprises are OEM. "At the current stage, the market operation risks are getting bigger and bigger. Our business process is still learning to walk. In the initial stage, although the OEM production is low, it always has money to make, and relatively insurance."
The local government believes that many small and medium-sized enterprises are still unable to afford the huge expenditures of creating their own brands. If it is unrealistic to insist that each company to do its own brand, it will not help the company's own development. In this case, receiving OEM production is still a good development idea. However, OEM production is definitely not a long-term solution. When the company develops to a certain scale and completes enough original accumulation, it will still rely on its own brand to fight the world. The technical content of the industry is not high.
“Although Xiaolan has become a national-level hardware industry base since 2002, the number of enterprises and the total output value of the industry are still ok, but the scale and output value of individual enterprises are not large. More than 80% of the enterprises are local private enterprises. If there is a big business risk, such as rising raw materials prices, it will be difficult for small businesses to survive in the long run," Ou Mulun said. He told reporters that the rise in raw material prices at the end of last year had a great impact on the development of the local hardware industry. Regardless of the size of the company, due to the delivery of the original order price, large and small companies are losing money to maintain customer relationships for a period of time.
"Heartache", the manager of the solid locks responsible for sales described the words used in the original situation, "the big business method is more, but also able to cope with the past, while the small enterprises face the foreign orders but want to pick up Can not pick up, the big factory is losing money to earn credibility, small production is to stop production and reduce losses, at that time let the size of the manufacturers are heartache." Many operators of Xiaolan Hardware Commercial Street told reporters that because of the rising prices of raw materials, this year's hardware business is not good do.
It is understood that the cost of raw materials generally accounts for more than 50% of the cost of hardware products, and the highest even exceeds 80%. “The high proportion of raw material costs to total cost indicates that the technical content of this industry's products is low and the added value is not high; in addition, most of the hardware companies are small in scale, the brand awareness is not high or even branding, and it is very difficult to encounter big business storms. Danger," said Wang.
Although Xiaolan is a national hardware industry base, the common disease in this industry with low technology content and poor product renewal ability is still very obvious. At present, there are many domestic hardware companies and the products are similar in style. The international market is still relying on the traditional price advantage. Because of the rising prices of raw materials, corporate pressures have increased, but companies are still playing price cards. In the case of increased costs, they are also pushing down prices and falling into a vicious circle of low-price competition. As costs increase and prices fall, Only in the use of materials and quality ideas, the incident of cutting corners and materials has emerged. This year, some manufacturers exported foreign products because of quality problems have been returned, which damages the interests and credibility of the entire industry." Zhu Xueling said. Insufficient market risk preparation In recent years, with the acceleration of the integration of domestic and international markets, Chinese companies have increasingly integrated into the international arena, and China's hardware industry has a place in the world. The low-cost and multi-competitive competition strategy has made anti-dumping against foreign hardware products more and more frequent. For example, on January 31, 2003, South Africa decided to continue to impose anti-dumping duties on aluminum tableware originating in China and imported from mainland China and Hong Kong, China, excluding barrels; on July 24, 2003, Mexico decided to China’s imports of steel nails were investigated for anti-dumping investigations; in July 2003, Peru conducted anti-dumping investigations on iron hinges originating in China or imported from China; on August 20, 2003, Australia conducted hot-rolled sheets imported from China. Anti-dumping investigation; on August 12 this year, Turkey conducted anti-dumping investigations on automobile tire snow chains imported from China.
Both Ou Rulun and Zhu Xueling said that from the information feedback from enterprises, the impact of foreign anti-dumping on the local hardware industry has not been fully reflected. Zhu Xueling said that she will often receive some warnings about anti-dumping issued by the Provincial Economic and Trade Commission. The local government has also done relevant legal training, but the degree of emphasis of enterprises is not high, and the first-hand attendance is rare.
The reporter interviewed a number of local hardware companies and found that the anti-dumping in front of them seems to be far away from them. "I heard it, but it has little impact on us, so there is no need to prepare at present." A hardware factory The person in charge is very representative: "It’s close at hand, but the OEM is not affected."
Zhu told reporters that the government's intervention in the market with administrative orders is gradually fading out, followed by the business behavior of "enterprise autonomy, responsibility and self-restraint", the enterprise has a very large independent space. In this case, unless you encounter a very real problem, such as an anti-dumping lawsuit, you can't solve it if you can't solve it yourself. Under normal circumstances, companies will not consider such things.
She also talked about the extensive trade associations in Jiangsu and Zhejiang provinces. When joint ventures deal with business risks such as capital shortages and anti-dumping investigations, they have played a very important role, but it is difficult to play the same role in Guangdong. The hardware industry like Xiaolan Town is so large, but there is no industry organization. In the view of many companies, the government has taken the lead in some associations and it has not played much role, and there is no binding force. However, the enthusiasm of enterprises to form associations spontaneously is not high, but in fact, enterprises are in need, which is a contradiction. The problem. "This also explains to some extent the 'space vacancy' left after the administrative command-style management exits the market. Our intermediary organizations and industry organizations have not made up in time." The authenticity of this information has not been confirmed by the international electrical network. For your reference only.
Zhu Xueling is the director of the Productivity Promotion Center of Xiaolan Town, Zhongshan City, Guangdong Province. The center is one of the few technology R&D service organizations established at the township level in China. Xiaolan Town is China's hardware industry base, and most of its products are exported. The small town of Xiaolan, which is located in Zhongshan, is a small city with a square area of ​​only 13 square kilometers. However, there are more than 5,000 industrial manufacturing enterprises, and there are more than 300 kinds of industrial products, covering most of the categories of light industrial products. The economic structure of "small commodities, large industries" has been formed. Strolling through this small town, where the primary industry only accounts for 1.5% of GDP, the tall buildings, spacious roads and factories that have been built have made you feel that it is just a small town.
In 2003, the total economic income of Xiaolan Town was 23.5 billion yuan, and the industrial sales revenue reached 20.5 billion yuan. As the traditional industry and pillar industry of Xiaolan, the sales revenue of the hardware and plastics industry in the town in 2003 was nearly 7 billion yuan. As an important hardware industry base in the country, after years of development, it has formed a hardware industry group with locks and igniting tools as the leading, upstream and downstream products and various types of accessories.
According to the recently released market survey data of the 2003 national market share of major industrial products and industry rankings, Vantage gas appliance industry ranked first, St. Yalen nail clipper industry ranked first, Guli lock industry ranked first, Huafeng locks The industry ranked third.
According to Ou Julun of the Xiaolan Town Economic and Trade Office, most of the hardware products in Xiaolan Town are currently exported, and most of the enterprises are OEM. "At the current stage, the market operation risks are getting bigger and bigger. Our business process is still learning to walk. In the initial stage, although the OEM production is low, it always has money to make, and relatively insurance."
The local government believes that many small and medium-sized enterprises are still unable to afford the huge expenditures of creating their own brands. If it is unrealistic to insist that each company to do its own brand, it will not help the company's own development. In this case, receiving OEM production is still a good development idea. However, OEM production is definitely not a long-term solution. When the company develops to a certain scale and completes enough original accumulation, it will still rely on its own brand to fight the world. The technical content of the industry is not high.
“Although Xiaolan has become a national-level hardware industry base since 2002, the number of enterprises and the total output value of the industry are still ok, but the scale and output value of individual enterprises are not large. More than 80% of the enterprises are local private enterprises. If there is a big business risk, such as rising raw materials prices, it will be difficult for small businesses to survive in the long run," Ou Mulun said. He told reporters that the rise in raw material prices at the end of last year had a great impact on the development of the local hardware industry. Regardless of the size of the company, due to the delivery of the original order price, large and small companies are losing money to maintain customer relationships for a period of time.
"Heartache", the manager of the solid locks responsible for sales described the words used in the original situation, "the big business method is more, but also able to cope with the past, while the small enterprises face the foreign orders but want to pick up Can not pick up, the big factory is losing money to earn credibility, small production is to stop production and reduce losses, at that time let the size of the manufacturers are heartache." Many operators of Xiaolan Hardware Commercial Street told reporters that because of the rising prices of raw materials, this year's hardware business is not good do.
It is understood that the cost of raw materials generally accounts for more than 50% of the cost of hardware products, and the highest even exceeds 80%. “The high proportion of raw material costs to total cost indicates that the technical content of this industry's products is low and the added value is not high; in addition, most of the hardware companies are small in scale, the brand awareness is not high or even branding, and it is very difficult to encounter big business storms. Danger," said Wang.
Although Xiaolan is a national hardware industry base, the common disease in this industry with low technology content and poor product renewal ability is still very obvious. At present, there are many domestic hardware companies and the products are similar in style. The international market is still relying on the traditional price advantage. Because of the rising prices of raw materials, corporate pressures have increased, but companies are still playing price cards. In the case of increased costs, they are also pushing down prices and falling into a vicious circle of low-price competition. As costs increase and prices fall, Only in the use of materials and quality ideas, the incident of cutting corners and materials has emerged. This year, some manufacturers exported foreign products because of quality problems have been returned, which damages the interests and credibility of the entire industry." Zhu Xueling said. Insufficient market risk preparation In recent years, with the acceleration of the integration of domestic and international markets, Chinese companies have increasingly integrated into the international arena, and China's hardware industry has a place in the world. The low-cost and multi-competitive competition strategy has made anti-dumping against foreign hardware products more and more frequent. For example, on January 31, 2003, South Africa decided to continue to impose anti-dumping duties on aluminum tableware originating in China and imported from mainland China and Hong Kong, China, excluding barrels; on July 24, 2003, Mexico decided to China’s imports of steel nails were investigated for anti-dumping investigations; in July 2003, Peru conducted anti-dumping investigations on iron hinges originating in China or imported from China; on August 20, 2003, Australia conducted hot-rolled sheets imported from China. Anti-dumping investigation; on August 12 this year, Turkey conducted anti-dumping investigations on automobile tire snow chains imported from China.
Both Ou Rulun and Zhu Xueling said that from the information feedback from enterprises, the impact of foreign anti-dumping on the local hardware industry has not been fully reflected. Zhu Xueling said that she will often receive some warnings about anti-dumping issued by the Provincial Economic and Trade Commission. The local government has also done relevant legal training, but the degree of emphasis of enterprises is not high, and the first-hand attendance is rare.
The reporter interviewed a number of local hardware companies and found that the anti-dumping in front of them seems to be far away from them. "I heard it, but it has little impact on us, so there is no need to prepare at present." A hardware factory The person in charge is very representative: "It’s close at hand, but the OEM is not affected."
Zhu told reporters that the government's intervention in the market with administrative orders is gradually fading out, followed by the business behavior of "enterprise autonomy, responsibility and self-restraint", the enterprise has a very large independent space. In this case, unless you encounter a very real problem, such as an anti-dumping lawsuit, you can't solve it if you can't solve it yourself. Under normal circumstances, companies will not consider such things.
She also talked about the extensive trade associations in Jiangsu and Zhejiang provinces. When joint ventures deal with business risks such as capital shortages and anti-dumping investigations, they have played a very important role, but it is difficult to play the same role in Guangdong. The hardware industry like Xiaolan Town is so large, but there is no industry organization. In the view of many companies, the government has taken the lead in some associations and it has not played much role, and there is no binding force. However, the enthusiasm of enterprises to form associations spontaneously is not high, but in fact, enterprises are in need, which is a contradiction. The problem. "This also explains to some extent the 'space vacancy' left after the administrative command-style management exits the market. Our intermediary organizations and industry organizations have not made up in time." The authenticity of this information has not been confirmed by the international electrical network. For your reference only.
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