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What advantages does China's hardware industry have
Source: Published on: 2015-04-23

      1 Industrial cluster can save transaction cost

In the industrial cluster, enterprises are faced with a large number of suppliers of raw materials and equipment. Therefore, they can compare their products with each other. They can purchase various inputs, including raw materials, spare parts, machinery and equipment, various services and various human resources at a lower cost and higher requirements.

    2 Industrial cluster is conducive to the mutual promotion of industry and professional market. Industrial cluster is conducive to the formation of professional market, and the formation of professional market will further promote the development of industrial cluster.

First, because of the professional market which has a greater impact at home and abroad, it is conducive to the sales of products.

Second, because there are many professional markets, enterprises purchase raw materials, accessories are more convenient, and the price is very low.

Third, these specialized markets are not only product distribution centers, but also information distribution centers. People in the same kind of products at home and abroad gathered here, at the same time, the relevant information at home and abroad also concentrated here. With this information, the enterprises in the cluster can timely improve the varieties of designs and colors, and quickly adjust the product structure. Enterprises can continuously reduce costs, which provides external power and pressure.

   three Industrial clusters are more likely to stimulate the sense of competition

In the industrial cluster, the same kind of products are not produced by one enterprise, but by many enterprises. These enterprises will naturally form competition with each other. This kind of competition is face-to-face, many similar enterprises even door-to-door, door-to-door.

     four It is conducive to the deep division of labor among enterprises, which is conducive to specialization and refinement, to the improvement of efficiency and to technological innovation.

In the industrial cluster, the business model of enterprises is generally core competence plus outsourcing. That is to say, every enterprise will concentrate all its capital and energy on doing its best to make it the cheapest and best in China, and even the cheapest and best in the world. This is the core competence of the enterprise. Other work, including the production of other parts, product design, sales and other related business, are outsourced to other professional companies. In this way, each product is a summary of the core competence of many enterprises.

Over the years of development, Zhongshan's hardware supporting enterprises have been quite perfect, as small as a screw, which can be found in the north of Zhongshan. Hanxin mold rapid prototyping provides convenient services for the rapid transformation of products of enterprises. Stanley, the largest in the world, has provided a convenient service for the rapid transformation of products Hardware tools The enterprise is located in the north of Zhongshan, which has laid the foundation for the prosperity of hardware industry. According to the person concerned, a very common lock has forty Multiple parts, with one hundred and twenty-three In addition, there are many other processes in Zhongshan three hundred and sixty A number of packaging and printing enterprises, which is also an important part of the smooth delivery of products, the cluster internal industry supporting perfect. 4、 The service provided by government officials was in place. The measures taken by Xiaolan Town for related industries, such as discount of loan interest, unified export tax deduction, etc., as well as measures to help capture overseas market information and provide human resources services for enterprises, have become one of the guarantees for the base to become stronger and bigger.

   five Industrial cluster is favorable for attracting investment

After studying the industrial development mode of many places in China, we find that industrial cluster is the best investment environment. Industrial cluster itself represents the market and business opportunities. Industrial cluster is a good project incubator and business incubator. Some people with vision can constantly find the blank area of investment here. It is the investment in these blank areas that makes the industrial supporting system and service system of the cluster increasingly perfect, and the industrial chain continues to extend.

In addition, the entry cost and exit cost of establishing enterprises in industrial clusters are low. As there are hundreds or thousands of similar enterprises, some of which fail due to poor management or need to sell due to industrial restructuring, including selling some assets, it is easy to find buyers, because there are many high-quality enterprises in urgent need of expansion. Merger and acquisition of local enterprises is the best way for them to expand at low cost. It is not only conducive to attract external direct investment, but also conducive to the enterprises within the cluster to finance in the domestic and foreign capital markets.

   six Industrial cluster is beneficial to governance of credit deficiency

The lack of credit is a serious problem in China's current market economy. It is reported that the ineffective cost of market transaction caused by credit deficiency has accounted for China gross domestic product Of 10% reach 20% , direct and indirect economic losses up to five thousand eight hundred and fifty-five 100 million yuan. In the case of serious lack of credit, regional industrial cluster is an effective measure to reduce transaction cost and avoid credit loss.

Regional industrial concentration, many enterprises in the same industry and related industries are concentrated in the same city. They know the root of each other. No matter in default, fraud or debt evasion, it is not the outsiders who are harmed, but the local people. Once someone has the behavior of entrapment, such information will immediately spread in the local area, and it is very difficult for him to have a foothold in the local area.

Moreover, due to the close relationship between the buyer and the seller, the buyer takes the product without paying, and the seller sells fake goods, and the cost of debt collection and return is very low. If you don't pay, I can go to your house every day. I don't have to fly or stay in a hotel. I can ask for it every ten or eight minutes.

In the industrial cluster, the owners of enterprises are familiar with each other, and some of them are partners who grew up together. Long term business contacts have further enhanced mutual friendship and trust. People have formed a friendship network of mutual help and mutual trust due to geographical, kinship and business ties. Business activities between enterprises are carried out on the basis of this friendship network. In this case, there will be no fraud, fraud, malicious default and other dishonest phenomena between enterprises.

      7 Industrial cluster is favorable for creating regional brand

In the fierce competition of the market economy society, not only products need brands, enterprises need brands, but also a city and a county need brands. The brand of the product indicates the unique performance and quality of the product, while the regional brand indicates the industrial advantage and product characteristics of the region.

Just as products with great brand influence can gain more consumers, regions with great brand influence can attract more distributors, suppliers, investors and various 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 regional economy.

Industrial clusters are conducive to the creation of regional brands. When it comes to household appliances, people think of Shunde; when it comes to lighters, they think of Wenzhou; when it comes to neckties, they think of Shengzhou; when it comes to socks, they think of Zhuji Datang; when it comes to textiles, they think of Shaoxing, Zhejiang; when it comes to hardware, they think of Yongkang.

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