Second and third tier cities will purchase or will "cool" hardware industry

Nowadays, the purchase of first-tier cities has been vigorously carried out. Some of the second- and third-tier cities have started to purchase immediately, and the intensive control of the real estate market has allowed the hot property market to enter the “frozen period”. The hardware, electromechanical and related upstream and downstream industries in the downstream of the industrial chain are generally affected. The sales volume of the ceramics industry continues to decline, and the window and door industry has locked in second-tier cities. The home appliance home improvement industry should be transformed. The hardware industry is implicated in “restricting purchases”.

Xiao Bian believes that under the pressure of the policy and the market, the purchase of the property market has actually "cold" but the hardware industry.

Lighting companies in the "winter" can not avoid the accumulation of grain to fight hunger, open water diversion. In the author's opinion, as the country’s monetary tightening is getting stronger, the effect of the purchase restriction on the property market becomes more and more obvious. The home building materials industry closely related to real estate bears the brunt. From the end of this year to the beginning of next year, there will be a group of lighting manufacturing companies and businesses. The freight department was forced to close due to lack of orders or poor cash flow. Therefore, the company must take precautions in payment settlement to avoid empty baskets.

At the same time, companies should also minimize investment in fixed assets and appropriately delay the expansion of new projects. In fact, if companies want to survive this long cold winter, it is still not enough to “tighten and defend”. Enterprises need to seize the time to “attack” attacks, such as increasing sales efforts and realizing inventory as much as possible; at the same time, companies can also Expand new sales channels to get more orders, such as opening an online shop.

The property market regulates and controls the hardware and building materials industry. At the beginning of this year, at the high-end forum held in Shunde, many experts and scholars at the meeting expressed their concerns about the real estate market. “As a downstream industry of the real estate industry chain, various property market regulation policies certainly have an impact on the household industry. Real estate and building materials are linked to a certain extent, but they will not respond so quickly.” After a lapse of six months New Express reporter found during the interview that the concerns of experts and scholars have become a reality.

“In the first half of this year, Foshan's entire building materials home industry sales were not very satisfactory. Some electromechanical companies’ sales even fell by 50%. Starting from the first-tier cities’ purchase restrictions in the first half of this year, most home-based companies turned the market to second and third-tier cities and foreign markets. "The guardian of the Foshan Office of the China Electromechanical Industry Association Lan Weibing told the author of the new Express.

Shunde Inspection and Quarantine Bureau recently announced home export data also show that the first half of Foshan's building materials market is subject to real estate regulation. “Shunde's household exports have experienced a period of rapid growth in the first half of this year after experiencing several years of rapid growth. At the same time, according to the statistics of the Shunde Home Furnishing Industry Association, due to the impact of the renminbi appreciation, January-7 this year. In the month, Shunde’s home-grown industry lost nearly 1.5 billion yuan in profits.”

Conclusion: The introduction of the property market regulation and control policy is a challenge and an opportunity for the entire hardware industry. The company fully seizes and utilizes the opportunities in the market and actively responds to challenges. It is crucial for hardware manufacturers and distributors to speak.

In the situation of “internal and external problems”, how to deal with lost hardware companies? Establishing a market mechanism and adapting to market changes are the long-term solutions. Under the pressure of policies and markets, consumers may be trending toward 4 or 5 cities. Electromechanical companies should promptly adjust product mix and subdivide sales channels to promote long-term development of the company.

Therefore, the hardware and electromechanical industry must be aware of market trends and lay a solid market defense.