Hardware Firms Expand Business to Rural Markets
Intense competition in household market promotes many hardware brands shift their attentions to the third or fourth tier of cities. With this trend, the hardware industry expands its market to the rural regions. Among them, many die casting manufacturers also focus on producing household die casting parts.
It is known that, there are millions of consumers that obtain certain capacities live in many inconspicuous towns. As a matter of fact, the total household incomes of families in towns have been higher by over 20% that those in the first-tier cities and second-tier cities. What's more, the quantity of families that have more than 350 thousand RMB of annual incomes will grow by 7.6 million per year in the next tow decades. This growth rate is faster than cities.
Hardware field provides all products that people use in their houses. Products like doors, locks, windows, lights and every kind of fasteners are all offered by enterprises in this line.
In the potential rich of town, the young people account for a larger proportion than their rate in big cities. Among them, nearly 55% range from 18 years old to 34 years old. One third of them had received at least post-secondary education. Therefore, the rich in towns have special consumer demands and features. They pursue rational consumption, which bring great business opportunities for the hardware field.
During the process that expanding business into rural markets, hardware firms should offer the real good products and show people their the superior characters. For many top-notch brands, both the powerful brand images and accumulated technologies are their advantages.