The significance of Yongkang cross-regional hardware industry cluster

Abstract In a fiercely competitive market economy society, not only products need brands, companies need brands, they are a city, and a county needs brands. The brand of the product indicates the unique performance and quality of the product, and the regional brand indicates the industrial advantage and product characteristics of the region. Just like the brand shadow...

In a fiercely competitive market economy society, not only products need brands, companies need brands, they are a city, and a county needs brands. The brand of the product indicates the unique performance and quality of the product, and the regional brand indicates the industrial advantage and product characteristics of the region. Just as brands with more influential products can get more consumers, the areas with strong brand influence can attract more dealers, suppliers, investors and all kinds of talents. At present, China's major hardware industry bases have promoted the prosperity of upstream and downstream industries to varying degrees, which is very beneficial to the overall development of the regional economy.

Industrial clusters are conducive to the creation of regional brands. When it comes to home appliances, people think of Shunde; when it comes to lighters, people think of Wenzhou; when it comes to tie, people think of Zhangzhou; when it comes to socks, people think of Zhuji Datang; when it comes to textiles, people will Think of Shaoxing, Zhejiang; when it comes to hardware, people think of Yongkang.

After studying the industrial development model in many parts of the country, we found that industrial clusters are the best investment environment. The industrial cluster itself represents the market and business opportunities. Industrial clusters are a good project incubator and business incubator. Some visionary people can constantly find a blank space for investment here. It is the investment in these blank areas that has made the cluster's industrial supporting system and service system more and more perfect, and the industrial chain has been continuously extended.

In addition, starting a business within an industrial cluster not only has low entry costs, but also has low exit costs. Since there are hundreds or thousands of similar enterprises, some companies fail because of poor management, or they need to sell because of industrial restructuring, including selling some assets, it is easy to find buyers, because many high-quality enterprises urgently need to expand, Mergers and acquisitions of local companies are the best way to expand their costs. Not only is it conducive to attracting external direct investment, but it is also conducive to the financing of enterprises within the cluster in domestic and foreign capital markets.

Industrial clusters are conducive to the formation of professional markets, and the formation of professional markets will further promote the development of industrial clusters.

First, because of the professional market that has a great influence at home and abroad, it is beneficial to the sales of products.

Second, because there are many professional markets, it is convenient for companies to purchase raw materials and accessories, and the price is very low.

Third, these professional markets are both product distribution centers and information distribution centers. At the same time that people of the same kind at home and abroad are concentrated here, relevant information at home and abroad is also concentrated here. With this information, companies in the cluster can improve the variety of colors in a timely manner and quickly adjust the product structure. Companies can continue to reduce costs by providing external power and pressure.

In an industrial cluster, the business model of an enterprise is generally “core capability plus outsourcing”. That is to say, each enterprise will concentrate all its funds and all its energies on the point that it has the most advantage. It will make this the cheapest, best, and even the cheapest and best in the world. This is the core competence of the company. Other work, including the production of other parts, product design, sales and other related businesses, are outsourced to other professional companies. In this way, each product is a collection of core competencies of many companies.

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