Due to factors such as raw materials prices, sanitary hardware industry not only without his "spring" has been the question of consumers, the profit of the "profiteering era" is really gone? Indeed, as the price of raw materials and the expansion of the consumer market, hardware industry market competition is becoming more and more big, hardware industry profits of violence era is gone forever.

Profits began to decline

Let's now the steel price, for example, steel prices in 2011 on March 17, a day of rose 100 yuan/ton, in less than a month of time, all kinds of steel prices rose 300 yuan to 500 yuan per ton. Rising steel prices to make profits of iron and steel production industry, had less common reflect profit almost to zero, the recovery of positive offset almost sold out.

Again in sanitary hardware, for example, a faucet products the biggest cost is the cost of raw materials, the current faucet products mainly based on copper material is given priority to, the copper price is 38000 yuan/tons, according to the personage inside course of study introduces, the cost of raw materials account for more than 70% of the whole production cost, calculated according to domestic gross margin of 30%, the cost of a faucet is about 200 yuan.

Many hardware mechanical and electrical enterprises including sanitary hardware are both good and bad are intermingled, common face embarrassment with low profits, the comprehensive analysis of no exception to the following:

1, not in the cultivation of professional market

General consumers to purchase hardware products is nearby principle, in you just bought a grocery store, daily supermarket, this not cultivate professional market and hardware industry.

The traditional hardware products trading is that there is no system of marketing strategy, and the lack of relevant regional protection, stable price system is impossible. And once formed professional hardware market, has the strong market supervision, can guarantee in hardware enterprises is worthy of the name, form a centripetal force of the buyer, avoid to produce, peer in, the phenomenon of blind stock.

2, no comprehensive brand ability

General circulation in the market of hardware products, design is single, obsolete, and shoddy workmanship, even no brand protection, which makes it impossible to obtain the trust of consumers.

Relevant market survey shows that 45.3% of hardware consumers in procurement