Domestic hardware market capacity is increasing
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China has become the world's largest center for hardware manufacturing and also the biggest consumer of hardware products. From a data perspective, the hardware industry has experienced rapid growth, with large and small businesses all vying for a share of the huge market. However, despite the large number of products available, the hardware market is still in an immature stage. Luo Baihui, secretary-general of the International Mould, Hardware and Plastics Industry Suppliers Association, pointed out that "on one hand, consumers lack strong brand awareness when it comes to hardware, and on the other hand, the market lacks standardization."
Luo Baihui explained that many home improvement consumers today choose products based on advertisements rather than real knowledge. Most are unfamiliar with the types, materials, and styles of hardware, often relying solely on salespeople’s recommendations. In hardware consumption, due to a lack of professional knowledge, consumers are unable to fully judge the quality of products through sensory perception alone. Even professionals find it difficult to distinguish between different materials, let alone ordinary buyers.
He added that the growing capacity of the hardware industry has led to the emergence of numerous small and large companies, creating a chaotic and competitive environment. With low prices in the market, most production companies operate without scale or efficiency. Some hardware products sold in local stores lack proper certifications, with prices as low as just a few yuan per piece, disrupting the formal market structure.
According to Luo Baihui, the production process of hardware is relatively simple, requiring little technical expertise. The industry is highly mechanized, and even a small team of a dozen people can produce hardware. This has led to a surge in new manufacturers. In addition to unqualified small workshops competing for market share, some companies originally producing other products have also entered the hardware sector. Over the past two years, many home improvement companies have expanded into the hardware field, while some furniture and flooring companies have shifted due to intense competition, further increasing the number of hardware producers.
Overall, hardware companies tend to be smaller in scale, less mechanized, and have lower employee quality and production efficiency. Product homogeneity is a major issue. Ultimately, competition in the hardware industry boils down to brand recognition, channel distribution, and after-sales service. Brands play a central role in consumer choice and are crucial for long-term survival and development. Tags: hardware industry, hardware market, brand development, market capacity.
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