Hardware tools are ushering in rapid growth
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The hardware industry is experiencing a major transformation driven by the rise of new distribution channels. This shift has forced traditional manufacturers to rethink their strategies, including repositioning agents and distributors, as well as restructuring long-standing cooperative relationships. As a result, companies now face growing risks of market control. Distribution channels are becoming more streamlined, with the emergence of new hardware malls and large-scale markets. Some operators and big distributors have even launched their own brands, which often clash with the retail strategies of established enterprises. Consequently, traditional channels are evolving into more diverse and specialized platforms, reflecting the fast-paced development of the sector.
The issue of unmarketable hardware locks and the struggle to sell low-end products is closely tied to branding challenges and the diversification of sales channels. Industry experts suggest that a clear trend is emerging in China’s hardware market: the circulation model is undergoing significant and rapid changes. In recent years and looking ahead, the industry is expected to operate in a state where both circulation and terminal channels work together seamlessly. While traditional channels still hold considerable influence, especially in secondary and tertiary markets, the landscape is shifting toward greater integration and efficiency.
Several companies, such as Huitailong, Yajie, Dinggu, Yashida, and Modern, have successfully navigated this changing environment. However, achieving success through franchise models remains a hot topic among marketing professionals. Store-based operations have shown great potential, but what truly makes a store thrive? Successful stores typically share several key characteristics:
1. They combine sales with comprehensive in-store services, helping to build a loyal customer base for lock products.
2. They support the stability and growth of the sales network, ensuring continuity and smooth operations for the company.
3. They enable quick communication with terminal dealers and consumers, allowing for efficient product updates and real-time market feedback.
4. When customers purchase from these stores, they are exposed exclusively to the brand’s lock products, giving the company a 100% sales opportunity and significantly boosting transaction rates.
These factors highlight why store-based models are becoming increasingly vital in the evolving hardware industry.