In the new retail era, the era of finished furniture is slowly opening, and the building materials and hardware industry is welcoming many changes: the finished housing policy will lead to channel reshaping and redistribution of interests. Traditional wholesalers and e-commerce will merge into the “deep water zone”. Further rush to eat small cakes.

This is also an era in which "danger" and "machine" coexist. There are hidden opportunities under the crisis. Under the policy of finished products, the possibility of transformation and upgrading of merchants is highlighted. The development model of the new retail era still has huge room for exploration.

How to seize the new enthusiasm of the building materials hardware industry and bring together new kinetic energy? The 2017 Central (Autumn) Building Materials Hardware Fair and Building Materials Hardware Industry Summit Forum will be held on October 26th in Zhengzhou South China City.

Transformation: Intensive cultivation after constant production

After moving to Zhengzhou South China City in 2014, the business philosophy of Li Sui, the head of the German Jinlan Kabo (China) Co., Ltd., has undergone a qualitative change. In the past, he simply sold the goods. After 2014, he has changed the way he thinks about problems and the way he thinks about doing business. He began to understand the production process, including the product testing report and OEM software system.

“In the past, the brand was missing, and the market lacked trust. After coming to South China City, they were making up for it.” He felt that the major change in business philosophy had brought his company into an era of intensive cultivation.

"There are perseverances in the permanent producers. In the South China City, it is a self-owned property shop. It is completely different from the mentality of renting a business premises. With a sense of belonging, I dare to dare to do it, to look at the problem from a global perspective. "Today, his development direction is clear, that is, he wants to focus on his own brand.

Also changing is Zhang Zheng, the general agent of Henan Xingchen Pneumatic Co., Ltd. in Henan. His previous channel of promotion was limited to waiting for customers to come to the door. Today, he not only does business, attends exhibitions, but also opens online stores. In an interview at the store in South China City, Zhengzhou, Zhang Zheng said that the upgrade of the business concept will also encounter problems. For example, although it has already touched the net, the problem of talents has been plagued by him, even if the online store operation position has a monthly salary. With a high salary of 10,000 yuan, there are few suitable talents who understand both e-commerce and the pneumatic industry. In the midst of the transformation, how can talents be found and how can business be further improved?

Crisis: the impact of the finished house era on the building materials hardware industry

The reason why businesses are changing is related to the development trend of the industry. For example, the finished house policy is a major event that affects the development of the current building materials hardware industry.

In August this year, Henan's seven departments jointly issued the "Guiding Opinions on Accelerating the Development of Finished Residential Buildings", stipulating that starting from January 1, 2018, all municipalities and counties in the province will start construction of commercial housing, all of which must be designed and constructed according to finished residential buildings.

The era of finished products has arrived. The adjustment of the upstream production mode will also have an impact on the downstream chain of real estate. A decoration company based in Henan Province said that this is a good news for large-scale decoration enterprises and enterprises that have been doing engineering renovation. The implementation of policies will make the market size of home improvement enterprises bigger and the market environment will be Changes will be changed from a single-family renovation to a real estate agent to purchase and batch decoration.

But the days of small households may not be so good. Some merchants said, "Some manufacturers, specializing in the establishment of the engineering department, directly to the housing enterprises, the real estate company's engineering, they directly look for manufacturers to do. Originally 'dog vigil, chicken Sichen', but now the market is not rules The factory will do the work of provincial agents, the provincial agents will do the retail work, and the retailers will do a little work. In this way, the dealers will become history."

However, some people in the industry hold different views. The era of finished products has not reduced the overall demand of the market. This is only a re-distribution of resources and channels, and a redistribution of interests. The second renovation and renovation will become the focus of the industry in the future.

Then, how do the home decoration-oriented decoration operators deal with them? Which building hardware dealers will be affected? What kind of response should they make?

Market: small scattered market to scale development

The professional market for building materials and hardware is also facing a change. It is understood that in 2013, there were more than 30 Zhengzhou building materials hardware and electromechanical market. As the market moved out, there are now more than a dozen markets of different sizes. However, many of these markets have some common problems.

For example, the market is not concentrated, most of the shops have no property rights, and the business operations are unstable; the market size is small, and the scale effect of wholesale procurement and operation cannot be formed; the market operation management level is uneven, and there is management confusion.

Looking at the country, some markets are already struggling to upgrade. Some building materials hardware markets are moving from single to fine, from single operation to integrated operation, from traditional marketing to experiential marketing.

There are also markets that are developing in depth in the “headquarters economy” or “creative” industries. They rely on high-quality fairs every year to attract many enterprises and scientific research institutions from all over the world to participate in the conference, which has led to the establishment of scientific and technological achievements.

In Zhengzhou, Zhengzhou South China City has also rapidly formed a scale agglomeration effect, becoming the largest professional building materials and hardware market in the central region. “The government plans and guides rationally, the enterprise construction and operation dominates, regulates the industry operation, and forms a scale gathering effect.” Ma Fushan, deputy general manager of Zhengzhou Huanan City Investment Promotion Center, summed up the demonstration role of Zhengzhou South China City.

Jin Rong, director of Zhengzhou Huanancheng Hardware & Electromechanical Marketing Department, also said that in the future, the hardware and electromechanical industry will gradually develop towards market scale, standardization of operation management and segmentation of business categories. At the same time, online and offline will be combined, and entities and e-commerce will develop simultaneously.

As the largest professional building materials and hardware market in the central region, how can Zhengzhou Huanan City play a greater role in the context of the finished housing policy and the new development trend of the industry, especially in the context of Zhengzhou's construction of a national central city?

Touch the net: revealing the operating rules of the new retail era

How to integrate deeply with e-commerce is also a compulsory course in front of the building materials hardware industry. The market is working hard. For example, in July this year, South China City Network and Jingdong Cloud teamed up to create a hardware industry B2B trading platform--South China City Network Hardware Mall, selected and aggregated a large number of world-renowned hardware brand manufacturers and hardware brand agents, from production and distribution. To the full integration of terminal resources, to avoid dealers to increase the price, to achieve the quotation of the advantages of the entire network.

Superimposed by the powerful IT technology advantages of Jingdong Cloud, the backstage of South China City Network Hardware Mall has powerful big data functions. Buyers can quickly find quality-assured hardware brand products, easily collect purchasing data, reasonably adjust purchasing decisions, and predict future sales. Do a good job in product inventory to ensure that platform products can meet the procurement needs of buyers in different production cycles.

The pace of integration of merchants and e-commerce needs to be accelerated. The channel structure formed by traditional manufacturers, distributors and retailers cannot fully adapt to the new development trend. Forward-looking merchants must adopt new models to optimize and adjust themselves.

Dongguan Zhenming Hardware & Plastic Technology Co., Ltd.  specializes in R&D, production and sales of luggage hardware. Products include dog buckle, alloy jewelry, hardware label, shoe buckle, shoe buckle accessories, shoe buckle hardware, luggage buckle, luggage hardware buckle , luggage hardware accessories, etc.