Revelation of China-style development brought about by the development of American furniture hardware

With reference to the development of the furniture hardware industry in the United States, it may be possible to find a new outlet for the Chinese furniture hardware industry that is confused. During the transition period of the industry, we can look at the way out of furniture hardware in China from the furniture hardware industry in the United States. “Bronze is a mirror, but it can be dressed; a man-made mirror can be used to judge the gains and losses; with history as a mirror, we can see the rise and fall.”

First, the United States furniture hardware industry environment 1, the United States furniture hardware industry three shifts: the earliest from the northeastern region of New York, Pennsylvania and New England developed, and later transferred to the central and western regions, and then transferred to the southern region. Each transfer is actually moving to a region where the manufacturing cost is lower and the quality of hardwood resources is abundant. This kind of "manufacturing capacity transfer" is also the case in China's furniture hardware industry.

2. The negative impact of globalization on the US furniture hardware manufacturing industry is extremely serious. From 1992 to 2005, the import of all furniture hardware products increased from US$4.1 billion to US$23.65 billion, an increase of almost US$20 billion, or an increase of 477. % From 1997 to 2005, furniture and hardware industries other than kitchen cabinets had lost 108,000 jobs, which accounted for 21% of unemployed workers in the United States during this period.

3. The impact of changes in the concept of furniture hardware consumption on the furniture hardware industry in the United States: Like many mass-produced consumer products, civilian furniture hardware has become more of an “ordinary commodity” than a bulk category, and the sales volume depends on the price. Consumers no longer regard furniture hardware as a worthwhile thing to spend, and less and less money is spent on furniture hardware; at the same time, furniture hardware companies fight prices in the market, profits are greatly reduced, but the cost of production However, it has been rising. As a result, the investment in factories and equipment has dropped drastically. As a result, the technology and equipment of many American furniture hardware factories have fallen dramatically.

Second, the US furniture hardware industry faced with "cost increase, competition intensified, profit reduction, market shrinkage" when the operation of the face of rising costs, increased competition, lower profits, the market shrinking market environment, the United States furniture hardware manufacturers took much Operational strategies.

1. Turn off your own factories, become wholesalers and retailers: In the retail channel, they use their own brands to attract consumers and put products in low-wage-cost countries such as China. The profit comes from retail sales. The difference between the price and the manufacturing price.

2. Strengthen your own manufacturing capabilities and integrate imported products into your own product line. In addition, they also use lean production and the latest technology to improve their energy levels.

3. Concentrate on making customized products. From the production of “common products” to custom products, customers are willing to spend a little more money on customized products, and large importers cannot.

4, the development of new markets and product uses: wooden parts industry is a good case, they changed the product structure, the market positioning in the construction industry and kitchen cabinet industry, in order to deal with the decline in furniture hardware industry.

5, re-establish the industrial cluster of the furniture hardware industry, or establish an advantage center, so that the entire supply chain operates more closely to provide more value to the target customers.

3. Where can China's furniture hardware manufacturing industry follow?

1. Transformation from "Common Goods" to "Customized Goods" and Closer to Customers, Creating Value-Added Products and Services In the furniture hardware industry, many furniture hardware manufacturers and terminal customers lack links and rely too much on retailers. Get information on customer needs and expectations. Furniture hardware manufacturing must learn how to approach end customers, how to provide them with products, and to ensure their own profit.

This requires better marketing capabilities, better sales networks, lean manufacturing and flexible manufacturing capabilities, instant supply chain operations capabilities, supply chain management, innovative thinking and leadership, better education and training of employees, etc. In short, a new business model.

2. From the aspect of manufacturing, factories must be automated as much as possible to obtain maximum production efficiency and increase labor productivity. Therefore, new technologies and “lean manufacturing” may be needed to reduce costs; at the same time, Education and training, development of new products, and research have increased investment. This has led to the development of workers with special skills, the creation of advanced products, and the sale of good prices. If we continue to produce general merchandise products and provide low-level services, then we will continue to lose our market and hand over to regions where labor is richer and cheaper.

3. Establish related advantage centers or gather competitive advantages according to Mike. Porter's definition of "competition theory", "aggregation refers to a group of geographically close, interconnected companies that have synergistic institutions in specific areas that are linked together through common interests and complementarity" through supply chain development. Strategic partners work collaboratively in all aspects of the entire supply chain to make the most efficient use of resources.