Changdian explains the three major trends of hardware

      After more than 30 years of development, China's hardware industry has become more mature and occupies an important position in the world market. At present, the output of many hardware products in China ranks first in the world, such as lighters, zippers, wrenches, pliers, etc., which have good sales records abroad. At the same time, after years of development, the characteristics of the development of China's hardware industry cluster have gradually emerged.

      China is one of the largest hardware producers in the world, has become a major hardware processing and export country in the world, and has broad market and consumption potential. With the development of social economy, the cluster development of hardware industry has obvious characteristics under the new situation.

      The development of China's hardware industry cluster can be divided into three types. First, Daxin Town of Zhangjiagang City, a typical representative with a long history, is an industrial satellite town with an early start of township enterprises in southern Jiangsu Province. It started with hardware, and has a production history of more than 70 years. The second is the industrial cluster. The typical representative is Yongkang City, Zhejiang Province, a large hardware industry cluster with an annual sales revenue of more than 100 billion yuan, which has become a local pillar industry. The third is market development. The typical representative is Xiaolan Town, Zhongshan City, Guangdong Province. After years of development, it has formed an industrial cluster with locks and gas appliances as the leading products and complete upstream and downstream products and various accessories. These three types of industrial clusters have their own advantages and characteristics. They not only make great contributions to local areas, but also support the development of China's hardware industry and go abroad.

      The advantages of industrial cluster are very obvious. It can effectively solve the problem of high management costs and agency costs, and avoid the problem of high transaction costs and logistics costs caused by long-distance transactions. Industrial clusters are conducive to the deep division of labor among enterprises, while the deep division of labor is conducive to specialization and refinement, efficiency improvement and technological innovation. At the same time, it is conducive to attracting investment, saving transaction costs and stimulating competition awareness.