The export market is shrinking and the single sheet helps Xiaolan lock industry tough

The author recently found in an interview with Xiaolan that although the "big test" has passed, the "small test" has come one after another, and the company still faces the pressure of operation. However, it has not fallen too long, and it has its own The tricks.

Hardware manufacturing is the traditional industry of Xiaolan. After years of development, Xiaolan has formed a cluster of locks and gas appliances, and has a complete market share of upstream and downstream products and various accessories. It has a high market share in China and is far away. It is sold to Europe, America, Southeast Asia and other parts of the world, and "Small Locks" is known for its high quality. Under the financial crisis, Xiaolan’s lock industry has been affected by the impact. What is the status quo?

"August orders are already full"

“The orders in August have been filled up.” Zhongshan Fuyu Hardware Products Co., Ltd., located in Lianfeng Industrial Zone, Xiaolan Town, has finally “shouldered to see the moon” after a few months of losing money. Yu Guoqiang, the company's administrative manager, described the survival of the past few months with “running blood”.

"I have never tried such a panic, like the sky has fallen." The general manager of the company, Liang Fujian, described himself as attending the autumn fair last year and saw the mood of the exhibition when he was cold. "We sent emails to foreign customers, and there was no response." ”

In order to ensure the operating rate of the factory, "we also do a model list of locks." Yu Guoqiang said that this move is to retain the workers on the one hand, "no work, even if you pay wages as usual, workers will leave"; On the other hand, "The customer has a consumption inertia, and today you have made a lock, and may give you a bigger order tomorrow." Currently, the August order also includes a lot of loose orders.

Even in the most urgent need for orders, Fuyu has always maintained a bottom line - first collect money, and then ship. When the market is good, "first delivery, then collection" may get more orders, however, the financial crisis has caused many peers who have tasted the sweetness to suffer. According to the author's understanding, after the financial crisis, Xiaolan had a large hardware company that lost tens of millions of yuan and was badly hurt.

"Cash is the king, in order to ensure that the company has weathered the storm." According to Yu Guoqiang, whether it is buying a large number of steel during the low price of raw materials , or more than 1 million mold costs for developing new products every year, Fuyu relies on "free capital, rolling development of".

Although "Blood has stopped", Liang Fujian and his team still dare not slack off. "The Southeast Asian market is slightly low-end, orders can only maintain the operation of the factory, the European and American markets are high-end markets, and the company's profits are located." At the moment of "prudent trial of water", there must be new growth points to ensure that the company has just improved, on the one hand, to open up new demands in the European and American markets, and on the other hand to increase the added value of the Southeast Asian market.

It was also in the autumn fair that made him feel that "the sky fell down", Liang Fujian had an unexpected discovery: "The tens of thousands of copper doors do not have a good lock." After half a year of research and development, Fuyu has The new fist product - 89 series Tiandi lock, the price is thousands of dollars, has obtained the certificate of the Ministry of Public Security mechanical anti-theft lock, is applying for the Ministry of Public Security production license and the US secondary lock certification.

"In an increasingly competitive environment, if you don't improve a little every day, you will die." Yu Guoqiang said.

Full recovery needs to be next year

However, trying to use Fuyu's “solutions” to illustrate the recovery of the lock industry is not convincing. "There is no economic recovery, but the time is long, and the customer has added a small amount." A hardware industry owner in Xiaolan Town, who asked not to be named, said that there was no obvious change in the export market. In addition, “although the domestic market still has potential for development, the original export-oriented enterprises are now turning to domestic sales, and they still need to explore channels. It takes time and needs to be recognized by merchants and consumers.”

According to industry surveys, 10% of the enterprises in Xiaolan lock industry have closed down; some business owners in the lock industry claim that orders have been reduced by 10-20%...

"The financial crisis has caused about 10% of the enterprises in the Xiaolan hardware industry to close down. The remaining half are still losing money, and the other half are recovering." A person familiar with the situation described the current situation.

The market is not as optimistic as we are, but the “big test” brought about by the financial crisis has passed. A person in charge of a lock company told the author that most of the corporate customers are in the “hemostasis” stage after the “hibernation period” of customers from November to March last year, especially some loose orders, which are gradually helping the company to be normal. The land started to operate, although the scale will be smaller than before.

"From the perspective of the enterprises in the association, the company can only say that it has already come out of the bottom." The relevant person in charge of the Xiaolan Hardware Industry Association told the author that orders for non-export enterprises in the association are steadily rising, especially in Southeast Asia. The market is gradually picking up earlier. "It is quite a 'hibernation period' from November to March this year, and it has successfully experienced the 'big test' brought about by the financial crisis. It is very difficult to fall down again. We are very confident!" Liang Fujian said in an interview with the author.

However, the days are just a little better, and the overall increase in international steel raw material prices has brought the hardware industry to another test. “As raw materials have risen, it is difficult for product prices to rise immediately. It will take time for the manufacturing industry to really get out of the woods.” A business owner said.

Another fact that cannot be avoided is that the export-oriented enterprises, mainly in the European and American markets, are still not optimistic about the recovery of orders. Most enterprises still believe that this "depreciation" will be resumed at least next year.

According to the author's understanding, in the past three months, a group of Xiaolan lock companies that dominate the European and American markets have made a lot of market research in Europe and the United States. The survey results show that although the Dow Jones index has been rising for half a year, the actual situation in the European and American markets is still relatively weak. From the situation reflected by the partners and trading companies, it seems that the recovery of purchasing power in the European and American markets will take some time. This is the main basis for the industry to expect full recovery of the market until next year.

"But this series of research has enabled enterprises to have a fuller understanding of the market." The person in charge of the above-mentioned lock-up company said that this crisis is a process of survival of the fittest, and high-quality and high-quality products will always lead the market.

Can regional brands dilute the haze?

It is reported that the Xiaolan Lock Association has jointly registered a trademark called “Zhongshan Lock” in the State Trademark Office. It is expected that the locks with the “Zhongshan Lock” collective mark will be available this year. Zeng Zhitian, executive vice president of Xiaolan Lock Industry Association, said to the media that he hopes to implement the strategic development model of “enterprise + alliance standard + detection of real insurance room + collective trademark + brand promotion”, and strive to build a regional brand of “Zhongshan Lock”. At present, some business leaders of the Lock Industry Association have raised funds to establish “Zhongshan Xiaolan Locks Co., Ltd.”, which is responsible for the operation, management and brand promotion of collective trademarks.

Enterprises including Fuyu Company agree with this practice of Xiaolan. “Zhejiang and Shandong lock bases are mainly based on batch locks, and the products are relatively low-grade; 'Small manufacturing' is a high-end product in the market.” Liang Fujian, who has been in the lock industry for more than ten years, believes that in finance Under the crisis, only by relying on quality to win, enterprises relying on brand can survive in the big waves. Therefore, Xiaolan’s hardware companies should cherish the reputation already possessed by “Zhongshan Locks” and rely on regional brands to drive the market. Marketing .

However, the problem still exists.

"There are ten companies and eight companies that have their own brands, self-development capabilities, and dare to fight in the market.

"Informed sources told the author, "If you take 10,000 yuan and rent a factory, you can open a lock factory. "This is the "screwdriver factory" commonly known in the industry. It is reported that there are about 13 lock factories in the area of ​​2 square kilometers around Fuyu. Such lock factory has a very weak survivability, and most of them counterfeit other companies' products. To survive. "The cost of counterfeit and shoddy products is too low, only 50% off or even 20% off. Yu Guoqiang said.

The author understands that some parts factories in Jiangsu and Zhejiang provinces are very happy to cooperate with Xiaolan's lock factory in order to raise the price through the reputation of “Xiaolan manufacturing”, but it has reduced the quality of the entire Xiaolan lock industry.

How can these factories, which are not even considered by corporate brands, be bound by “regional brands”? “Regional brand is risky. This risk may end up being caused by the government and the whole industry is damaged.” An insider asked the author: “What if there is a quality problem with the product of the “Zhongshan Lock” brand?”

He believes that "the government also needs to do more to increase the supervision and crackdown on counterfeit and shoddy products and ensure that the reputation of regional brands is not harmed."

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