Industry News

Prices or become the main theme of the 2017 hardware industry

2017/02/07

Friends of the second half of 2016 by a variety of price increases in the news screen refresh, we predict 2017 "up" will become the main theme of the industry.


Why will suddenly usher in a wave of price increases? RMB depreciation and other comprehensive factors, it is clear that hot money is flowing to the raw material market. Market speculation amplified the effect of rising raw material prices.


However, dare not rise? Whether the cost increase can be fully reflected in the ex-factory price?


McMaster-Carr's price hike is tough and difficult to achieve in today's market, industry entrepreneurs say. High-end products and new research and development of the product is relatively easy to raise prices, because the main requirements of its customers is the quality of the price is not sensitive to the new R & D products, it is the other functions to impress each other; In addition, to reduce intermediate links, Space approach.


People often used to describe the changing market vagaries, good and bad like a pair of twin brothers, while coexistence, mutual support. There is a saying way is always more difficult than the fog, even if not dispersed, a quiet gas and wisdom will always guide the people on the road to find a new smooth road.


For the hardware and electrical industry, this round of rising process is not necessarily a bad thing.


Has been relying on the situation of low-cost competition is expected to be eased.


The increase in business costs, especially in the material prices. Enterprises will inevitably increase the product innovation research, as well as from the product quality, high-end on the start, so that the value of the product to replace the price, increase investment in the brand.


Second, at the market level will abandon low-cost means of competition and dependence. Really go from the market and services to help dealers to operate and improve market operations and marketing capabilities.


Third, this is also an opportunity to test the ability of enterprises to deal with sub-risk. Enterprises must be adjusted from the business, on the one hand need to start from the market to transform, on the other hand, need to strengthen internal management, return to the nature of basic management. After a round of competition, enterprise comprehensive strength will be improved.


Fourth, to accelerate industry consolidation and resource concentration. Full competition will lead to changes in the competitive landscape. The integration between enterprises will inevitably occur, the industry a high degree of integration, to further accelerate the development of the industry. Reaction from the market point of view, a new round of pattern fission is taking place, its core is not out of the small and medium enterprises, McMaster-Carr but between the reshuffle and integration of the giant. Which for the industry to enhance the overall level is useful.


Up, inevitable.


Perhaps this is another golden period of development of the industry.