The Expectation of Global Hardware Market
March.21.2011

At present, Chinese daily hardware hex bolt industry has leaped into the front ranks of the world. 14 technology development centers for zipper, electric shaver, stainless steel utensils, iron pan, blade, bike locks and so on and 16 product centers for pressure cooker, electric shaver, lighters and so on have been established one after another. Currently, most of these GPS Antenna centers have become the industry pacesetters; some have become the vanguard of the world and have achieved good economic returns. It is understood that now 70% of China hardware industry are private enterprises at least, which are the main force of China hardware industry. China has gradually become the world's largest hardware processing country and big exporter, it also has become one of the world's largest producers of hardware and it owns a vast market and consumption potential.

In the international hardware market, due to the rapid development of production technology and labor costs rise, European and American developed countries transfer the common products to developing countries to produce, they only produce high added value products, while China has a strong market potential, so it is more favorable to become a big exporter of hardware. China's hand tools markets are mainly distributed in Zhejiang, Jiangsu, Shanghai, Guangdong, Shandong and Taiwan, in which Zhejiang and Guangdong are the most prominent areas. Zhejiang Yongkang has always been known as the "hometown of hand tools", people from Zhejiang also has very strong sense of market operations, from the original hot pot product and stainless steel insulated cup to last year's popular scooters all have brought great fortune for them. Guangdong is also about to become the world's power tools mould center. For the moment, there are more than 6,000 mould companies gathering in Shenzhen and the Pearl River Delta region, the employees are more than 200,000. The South China International Mould Exhibition has been held in Shenzhen for five consecutive sessions and it is China's most professional and international power tools industry exhibition, it has attracted more than 1,000 enterprises from 25 countries and regions to participate in.

DIY products have become the new darling of hardware relevant solar panel industry market. In recent years, the architectural hardware products design in developed countries is tend to easy installation and maintenance, so the self-assembly products and tools are very popular in the garden tools market. According to analysis, in the next two years, the domestic architectural hardware products will also develop towards intelligentization and humanization.

According to reports, the demand of the garden tools market in the world is growing continuously. The growth is stable in Europe and North America, especially in Eastern Europe; there is a slight rebound in Asian markets, the market potential is large. At present, the world sales of cutting tools is over 10 billion U.S. dollars, Europe, North America, Japan and Australia account for 75% to 80%.

In Asia, China is also an important market. It is predicted that the cutting tool demand in China is between 7 and 8 billion Yuan, in which the modern cutter with high-precision, high efficiency and high reliability such as cemented carbide and ceramic tool, their consumption sum is about 1.2 billion Yuan, 80%-85% of them are dependent on imports, the imports of cutter used for mold making is more than 90%. In the past year, the reason why the demand of the cutting tool market became slow is that the cutting tool life has increased, in addition, users have put forward request on the entire manufacturing process, a lot of machine tools and cutting tools have been replaced. And the increase of the multifunctional cutting air tools application has replaced many of the previous simple single-function cutting tools. In the future, users will be more emphasis on plant's research and development on cutting tool, not only in materials and surface coating technology, but also in the production process of cutting tool, which can help cutting tool manufacturers increase market competitiveness in their familiar fields.

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The Market Degree of China Auto Parts Is Higher Currently
March.02.2011

Under the promotion of national policy and people's demand, China automobile market is still carrying on last year's hot market since this year. However, incompatible with the complete vehicle enterprise's situation, China GPS Antenna industry is facing a great dilemma: auto parts enterprises are confronted with serious revenue problems, raw material prices increase, product backlog and the development of solar panel enterprises is very difficult. The number of enterprise is large, but the overall quality is not high, the exports have declined sharply, domestic market also has got into the position surrounded by foreign hex bolt investors.

The present situation of auto parts has fully explained that, the current market degree of blow molding machine has been relatively high. The low threshold has resulted a large number of private capitals to enter into, the number of enterprise is very large, but the overall quality is not high. China's auto parts only pay attention to output and production, but pay no attention to quality and R&D, some solar water heater company's factories are large, but special research and development centers are not established. Therefore, the bag making machine enterprises independence R&D capacity is weak; the anti-risk ability also is poor.

How to guide the plastic valve industry to go out of the all-time low as quickly as possible and rapidly rise in the tide of globalization? Experts believe that in the current economic situation, if parts enterprises want to obtain long-term development, they must rely on national policies support, accelerate company merger and restructuring through industry’s revitalization and planning, optimize the allocation of resources and then form the competitive power. Mr. Xu Changming, the director of the Information Resources Development Department of China Information Center, he believes that the merger and restructuring of parts enterprises is more urgent than the complete vehicle, if there are no large parts enterprises, the cost can’t be declined and the quality can’t be improved, so the whole industry's development will be extremely difficult. Domestic parts and components blow molding machine enterprises are small, weak in strength and lack of R & D capabilities, under this background, if they want to develop rapidly they must speed up merger and restructuring, and form the scale effect.

Under the influence of financial crisis, the development of foreign auto parts enterprises is still not optimistic, only in cip Germany, nearly a hundred of auto parts enterprises are in hot water because the capital chain rupture, they seek buyers and investment opportunities in China, many of them have good technology and stable pvc fitting sales channels. Wang Zhile, the research fellow of International Trade and Economic Cooperation Research Institute of Ministry of Commerce, he suggested that Chinese car parts enterprises should learn from the experience of developed countries' large-scale two-way investment, and actively promote the process of auto parts industry globalization. They should actively participate in overseas mergers and acquisitions, attract international resources and promote domestic parts industry upgrading.

Currently, some domestic slitting machine companies and parts manufacturers have walked out of China. China's domestic auto parts enterprises are improving their own technical strength through overseas acquisitions, the strategy to break the situation that foreign enterprises control key technology and market is becoming more and more evident. As for how to determine the acquisition objects, industry experts believe that many valuable foreign car companies will face bankruptcy, they have advanced technology and their customers market is also very attractive -- for Chinese car accessories companies, this is a good opportunity. A company should know its core competence first, then to evaluate whether the overseas M & A is the best choice and to choose what kind of acquisition targets. Auto companies should give more consideration to quality problems; however, to improve quality the advanced technology is needed, which is a key part that should get in the merger and acquisition.

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China Auto Parts Enterprises Facing Various Internal and External Troubles
January.24.2011

Chinese hot automobile market of 2009 has made China quickly become the world's largest automobile market; it has become an automobile superpower, but not automobile great power. The core of developing China's automobile industry is to achieve the leaping development of auto parts industry, and master the core technology of components. Currently, the diseased full zero relationship of auto is increasingly becoming the tightening hoop-incantation that restrict the development of Chinese auto parts enterprises, so to explore new cooperation model between automobile companies and parts manufacturers is imminent.

Now under the influence of capital, the supporting systems and administrative regions, the industry segmentation in domestic enterprises is serious, the technology is backward and the development is very difficult. Before more policies and measures that can encourage and support auto parts enterprises publishing by the state, the predicament of Chinese auto parts in the sandwich layer is difficult to change. Now with status advantages, domestic vehicle companies find various reasons to skimp car parts enterprises' deserved payment, which they earn through supplying products to vehicle companies, in auto industry this is an open secret that vehicle manufacturers exploit component part enterprises. When vehicle companies lack adequate funds for their investment, they also require component part enterprises to provide substantial circulating funds for them, the amount is different from millions to a hundred million Yuan, in order not to undermine the cooperative relations, component part enterprises are forced to keep their resentment to themselves.

The strength of Chinese auto parts enterprises is not strong, now in China there are nearly two million Chinese-funded parts enterprises, accounting over 80% of the total number of domestic parts enterprises, but the sales is only 20%, 90% of products are concentrated in the low-end. A survey shows that it is difficult for most of Chinese-funded parts enterprises to enter supplier ranks of joint venture car accessories products, the part suppliers with foreign capital background selected by American auto enterprises in China are close to 100%, the proportion of German and Japanese auto enterprises is 88.9% and 89.5%, but domestic own-brand auto enterprises is 52.8%.

Since the state current policy of auto industry is to restrict the foreign ownership can not exceed 50% in vehicle joint venture enterprises, bur there are not many restrictions on foreign investment entering Chinese auto parts industry, so the foreign parts magnates have set up wholly owned or joint venture enterprises in China, which has further occupied the market share of Chinese local parts enterprises, now it has accounted for 80%. The world-renowned parts companies are strengthening their expansion in China gradually, most China's domestic dirt bike companies are marginalized, and they are facing great risk of bankruptcy. At present, China's core component parts such as auto electronic fuel injection system, engine, ABS, airbags, automotive transmission and so on are heavily dependent on foreign imports.

In recent years, the market share of local parts suppliers in this part is declining gradually. Since the 2008 financial crisis, the profit margins of global skyrunner enterprises has dropped significantly, the profit before interest and tax is close to zero, some parts enterprises have gone bankrupt. The fierce market competition has forced foreign capital parts suppliers to accelerate the expansion in China, the world famous parts companies have established wholly-owned or joint venture plants in order to grab Chinese auto market in force. Chinese hot auto market in 2009 has attracted almost all the world's parts magnates to make Chinese market as an important market. After the world's major vehicle manufacturers such as Germany, the United States, France, Italy, Japan and Korea entering China, they have formed their own new and closed auto parts support system according to different GPS Antenna technical standards. It has resulted in serious phenomenon in Chinese auto parts industry that the development is dispersed, which has greatly limited Chinese electric bikes industry to centralize and form scale. Some joint ventures or wholly owned enterprises begin to develop toward the low end after they have achieved scale advantages in the early stage, for example, Bosch has started to develop hex bolt corresponding parts products aiming at low-end auto models in order to meet the matching requirements of Chinese own brand electric bike enterprise, when China's own brand parts companies are going upgrade, which is likely to make Chinese local fitness enterprises face a new round of survival crisis.

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Electric Tools: Europe and America Are The Major Markets For Exportation
December.29.2010

In recent years, China electric tool industry has been vigorously developing the international market and has made remarkable achievements, and it has become the world's largest producer and exporter of electric tools. The statistical data of the Customs shows that Chinese electric tools export amount has exceeded more than one times than Germany, the global export volume of which ranked second in the world, and ranking first.

As the electric tools industry calls for small investments and yield quick returns, also its production relies on assembly, in recent ten years Chinese electric tools enterprises have mushroomed, although the industry's production level is increasing continually, but at the same time it also has brought white-hot price garden tools competition, which even has reached the unprofitable situation. In last year, under the drive of the global coiled silicon steel sheet, copper, aluminum and other raw material price rising, the international market price of Chinese electric tools had fully reversed the situation of declining year by year, the average unit price all increased, and the rate was significantly. Although the majority of the electric tools price increase garden tools offset the raw materials price increase, there is no simultaneous increase in profits, but at least it shows that China electric tools industry is developing toward improving product quality and going on the way of becoming big pvc fitting exporter.

In last year, China exported electric tool kitchen utensil products to 161 countries and regions, although the market is wide, but the concentration is high. Calculated by export volume, nearly 80% of the electric tool products are exported to Europe, America and other developed countries; nearly 50% are exported to three major power tools markets--America, Germany and Britain. The export volume of the top 10 export markets accounted for nearly 75% of Chinese total exports. The world's largest electric tool importers are American and German bag making machine market, and their imported electric tools from China are listed first in the country. In the two markets, Chinese power tools market share are 55% and 30% or more respectively. In these countries building hardware supermarkets and stores you can see that the average electric tools solar water heater are basically produced and imported from China. As the feature that people in these developed countries are willing to make something by themselves (DIY), which plastic valve has decided both Europe and North America are the main export areas of Chinese electric tools for a long period of time.

The blow molding machine export patterns of some electromechanical products with large trade surplus are mainly processing trade, but the export of Chinese electric tools has remained the general trade mode for many years. In last year, the electric tools adopted the general trade export pattern, which is the same as the previous year; it maintained the ratio of 54% in total exports. The slitting machine trade of processing with imported materials and assembling trade are also relatively stable, accounting for 30.23% and 14.94% respectively. It is gratifying that the three cip trade patterns all have achieved the simultaneous growth of the blow molding machine export volume, export value and unit price, thereinto, the unit price of general trade and processing and assembling air tools trade has increased more than 10%.

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China Hardware Industry Is Winning The Market's Golden Developing Period
December.07.2010

The Tenth China International Hardware Exhibition recently hold in Shanghai has attracted global industries' attention not only for its second largest size in the world, it also has taken ten years to sharpen a sword, and it has become the most mature, international and professional blow molding machine development. Moreover, from the perspective of its unprecedented scale, China's hardware industry has been out of the financial crisis, and is winning the market's golden opportunity.

According to Mr. Feng Xiangjun, the Managing Director of Chinese Branch of Germany Cologne Exhibition, which also is one of the organizers, both the exhibitors and visitors of this year have increased. Exhibitors have increased by 10,000 square meters, a museum exhibition area, domestic and foreign buyers have increased more than 20%, which indicates that Chinese power tools industry, whether exhibitors or distributors, have went out of the all-time low, and it recovers faster than the rest hardware markets in the world. The domestic market demand is very strong especially after the government promoting export enterprises to transform toward domestic market.

In the hardware exhibition, many Chinese hardware companies have shown their new hardware tools and other products. This year new established innovative product display area became the most talked about high-light of the whole exhibition, both domestic and overseas professional visitors or exhibitors and buyers have a great interest in the new blow molding machine products display area and the kitchen and toilet new product display area, all of them are excited and satisfied for seeing so many new products and new design. Many enterprises said that the orders situation of this year is very good, the factories are in full production, but they all have attached great air tools importance on joining and visiting such hardware exhibition because it has great influence in international market, there are power tools buyers purchasing on the spot, but also can see the new development trend of the industry from it, very worth it. For example, the new hardware products of this year's exhibition have shown smart, short, slim, stylish, humane and other characteristics, which represents new trend of current hardware products development.

The international hardware market of this year also has great recovery, more than 200 exhibitors from 19 countries and regions have participated in the exhibition, with an increase of 15% compared to last year, they hope to find Chinese cip buyers through the platform of hardware exhibition. Derek, the Asia-Pacific Region President of Cologne International Exhibition Limited Company, he introduced that China International Hardware Exhibition and Cologne Hardware Exhibition held in Cologne account for two-thirds of the global hardware industry exhibition and market demand. For international bag making machine business buyers, such exhibition is the best way for them to enter Chinese tools market. According to the recommendation of the room, garden and leisure Industry's Vice President of Cologne International Exhibition Company, a lot of buyers of European companies come to China to visit Hardware Exhibition, they usually go to visit slitting machine factory after the exhibition.

It is reported that the rebound of hardware market began from the Cologne Fair in March of this year, which is the first international hardware exhibition since the crisis. Exhibitors have digested large number of stocks after two year's dormancy, so with the economy beginning to recover, many industries including the construction industry need to purchase a large number of plastic valve for their new development, many Asian, Europe exhibitors returned to the exhibition and started to place orders, so the annual growth rate nearly reached to more than 10%. Shanghai pvc fitting Show has extended this market trend, because many foreign hardware companies were out of garden tools production in the crisis, workers were dismissed, they still faced some difficulties if they want to resume garden tools production in short term, so many buyers flocked to Shanghai Hardware Show to find appropriate products, which has brought more golden opportunities for China hardware companies.

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