How far will the price increase of materials affect the hardware industry?

People often think that the continuous increase in raw material prices will bring difficulties to the development of the hardware industry, affect the vitality and speed of the development of the industry, in fact, this is a misunderstanding of people’s understanding of the economic laws, and the negative impact is only a short time. In the long run, the substantial increase in raw materials will forcefully promote the rapid increase of the brand in this industry. The superior quality, price, and survival of the fittest will enter the virtuous circle.

Since the beginning of last year, the prices of hardware raw materials have been rising, and the increase has been particularly large. Due to the unbalanced supply and demand of raw materials, the prices of hardware products have also been rising. According to expert analysis, the increase in raw material prices is a concrete reflection of the economic laws in the hardware industry. The global economic recovery and the continued strong growth of the Chinese economy are the fundamental reasons for the increase in the price of metal raw materials.

Patterns to increase raw material prices continue to force hardware products prices all the way up, whether this makes the entire hardware industry hit hard? This is not the case. Even if a hardware company is frustrated, it will be a price for progress, because it will lead to a positive and upward situation in which the survival of the fittest and new products emerge in an endless stream. Yiwu market, some industry sources believe that raw material prices within a certain range of reasonable fluctuations, the industry's capacity and industry re-integration and reshuffle, product price adjustment, to help companies out of the industry for many years to enter the low threshold and low-priced competition and waste of products The cycle of resources is of great benefit.

The survival of the fittest and the elimination of low-price competition in the past made the effort of the company often used in low-end products, and the products were assimilated seriously, and arrogance and inferiority were not eliminated, which hindered the overall improvement of the industry. Due to the long-term low-cost competition in the hardware industry, most companies are relying on reducing product prices to compete for the market, minimizing profits, causing serious consequences such as low product prices, low value attached, and low profits. As a result, companies lack the support of continuous development and cannot progress. The industry cannot improve either. Two or three years ago, metal raw materials began to rise in price. By the first half of 2006, prices rose faster, and some prices rose several times within a month. This made enterprises very surprised, and long-term competition depends on low costs and low prices. Profitable hardware companies are even more difficult to parry.

Extending the market Under the pressure of rising raw material prices, companies have to find ways to change their strategies and adapt to market conditions for their own survival and development. The hardware industry has therefore been given an opportunity to improve. It is understood that after a substantial increase in product costs, China's hardware companies pay more and more attention to innovation, increase product technology content, according to the principle of higher prices and better prices, the corresponding increase in sales prices, product quality and rapid increase in quality, industry competitiveness has greatly exceeded the past. It seems that in the new market situation, companies in the hardware industry will increase their added value and profits by improving management and developing new products, and exploring domestic and foreign markets to create a good situation in which quality, price, and superior survival will be eliminated. People are pleasantly surprised.