After a period of barbaric growth, the hardware tools industry encountered a bottleneck in its development.A series of problems, such as low price competition, thin profit and prevailing credit selling, hinder the development of the industry.

After a period of barbaric growth, the hardware tools industry encountered a bottleneck in its development.A series of problems, such as low price competition, thin profit and prevailing credit selling, hinder the development of the industry.

Thin profit margins are hard to find

Competition at the lower levels of the industry will remain fierce.Due to low barriers to entry, there is a constant influx of potential entrants from both manufacturers and sellers.Coupled with the temporary residence of the enterprise, lack of talent, lack of innovation, many enterprises have encountered the growth of the ceiling, until the end of the boss is exhausted, enterprises are in a dilemma.

As the big corporate brands are basically carved up, the new generation of sellers are bound to look for new brand agency, which has created a huge market demand, but also has given rise to manufacturing enterprises to constantly create new brands.

Although new enterprises keep emerging and a large number of brands are put into the market again and again, but for many enterprises and manufacturers, the profits are getting smaller and smaller.Under multiple pressures, traditional dealers have had a tough time, with sales and profits sliding and profit margins hard to find.

The prevalence of credit sales has become a chronic disease in the industry

Since retailers in this industry are basically small businesses at the beginning, they basically rely on upstream support to develop.It is an indisputable fact that a seller with annual sales of about 20 million, receivables of one or two million;A manufacturer with annual sales of 30 million or so, the receivables are basically 10 million.As long as the management is a little careless, the enterprise will be dragged to death, drag down, not to mention innovative development.

Channel changes under "Internet +

Under the impact of the Internet tide, the hardware and electrical industry is also engaged in the exploration of "Internet +".Many brand owners and dealers have tried to use mobile Internet technology to expand sales channels and establish three-dimensional online and offline sales networks, and have received tangible benefits.

Numerous hardware enterprises have set up online stores on taobao and Tmall.In addition, there is micro-marketing. At present, the online development momentum is relatively good, with an upward trend year by year.

The addition of the Internet has a good curative effect on the traditional stubborn diseases of hardware tools and great practical significance for further regulation of the industry.On the one hand, cure the existing defects of the industry; on the other hand, further regulate the industry. I believe that the Internet will be a good medicine for the hardware industry.