subject: Industrial Upgrading Of Lock Industry Under The Variation Of Raw Material Price [print this page] Locks and fittings is a traditional industry of China's hardware industry. Under the background of economic globalization, the lock industry seeks to shift development ideas, to meet the needs of different levels of consumers at home and abroad, to achieve sound and rapid development of the lock industry. Recently, prices of copper, zinc and other mental raw materials have been in a downward variation. In order to recover funds and reduce storage pressure, many manufacturers sell the products with a break-even price which led to an increase in the sales of door and window locks. The introduction of the measures which aimed to expand domestic demand eased some of the pressure caused by the financial crisis, and the sale of door and window locks was obviously increased. The CEO of tools.wjw.cn considered that an unprecedented development trend of locks and fittings was coming along. There are more home decoration businesses in autumn and winter, so products such as door locks, security locks, hinges and door stoppers are sold well, having a higher trading volume. The chain lock, motorcycle padlocks and disc locks and other products are also popular so the sale volume is quiet considerable. In terms of the export, foreign buyers mainly focused on inquiry and re-order, the wait-and-see atmosphere was relatively strong.
However, there were some problems in the door and window lock industry which should be paid attention to by the enterprises. They needed to constantly conduct industrial upgrade and improve the industry to an unprecedented height.
Lack of brand awareness
Most of the lock enterprises are small and there were few leading enterprises which can drive the development of the industry. The entrance of chinas lock industry is low, the enterprises are lack of brand awareness and brand establishment. Some enterprises operate in the form of family workshops, so their funding, manpower, technology, management and other factors restrict their development. Luo Baihui suggested that locks enterprises should strengthen the brand construction, improve the enterprises competitive and standard the lock market.
Lack of market normative
Currently, approximate 88% of the locks and fittings in the market come from Zhejiang province and Yi Wu takes accounted for about 28%. The rate of factory direct is up to 70.5%, and the products are mainly in low class. As the lock industry is labor-intensive with low entry barriers and low require of degree of specialization, the so the competition is increasingly intense. Because of the low threshold, the market is generally lacking normative. The homogenization phenomenon is serious which results in the awkward situation that products have not notable characteristics and authenticity is difficult to distinguish. Some lock enterprises start a price war since the increase of raw material costs which stimulate the disorder competitions and hold back the development of the lock industry.
Lock industry will be innovated in the marketing mode by putting the brand in the linking position, developing the active effects of traditional physical market, shops, stores and a variety of exhibition platforms and making use of modern network and IT to promote the role of network trading platform.
