Market Shares of Chinese Moulds May Reach RMB 300 Billion
Chinese lock industry has a wonderful future with more than forty billion yuan of annual sales volume. It produces over two billion products and more than 10 billion exports per year. In future, China lock industry will still increase at an over 20% speed rate each year.
The falling profits of lock market indicate that this industry needs to be strengthened. Chinese hardware products, especially moulds and dies, are inadequately professional and exquisite because of their individual workshop production pattern, while foreign countries are not. This makes it available for foreign-funded enterprises to enter Chinese market. Raw materials prices are increased so that profits are reduced. Raw material of hardware products is steel, of which the prices are continually rising. Hardware products sold in the market are rough, simplex and old-fashioned, with insufficient brand protection. All these reduce products’ credibility to consumers, who pay special attention to brands of hardware products. The aspect of brands is considered to be the primary requirement for customers when purchasing goods. Therefore, there is no doubt that comprehensive performances of brands decide the whole development of hardware industry.
With the coming of the 12th five-year plan, experts predict that the market share of China's mould and die industry may reach 300 billion yuan. Integration of locks field is imperative.
Accompanied by the coming of knowledge economy, global economy, information society and changeable competitive factors, China lock manufacturing industry is confronted with competition crises from international market. As a whole, there are many small but comprehensive companies, and few lock manufacturers with proprietary intellectual property rights and patents. These results in the unstable quality and inferior products flooding the market. Chinese lock enterprises should focus on improving the quality of locks and pushing the whole industry to great integration.
