Exploring the "China Hardware Town": All the way to the thorns

Abstract Hardware tools have been produced in Daxin Town for half a century. Since the reform and opening up, the hardware industry in the town has risen rapidly, forming a group of key enterprises represented by Jiangsu Hongbao Group. Since 1986, medical equipment and other hardware products have been sold overseas in large quantities, and have successively obtained national,...

The production of hardware tools has been in Daxin Town for half a century. Since the reform and opening up, the hardware industry in the town has risen rapidly, forming a group of key enterprises represented by Jiangsu Hongbao Group. Since 1986, medical equipment and other hardware products have been sold overseas in large quantities, and have won the honorary titles of national and provincial quality products and advanced townships for export. In 1993, Hongbao Group and other enterprises successively delivered more than 100 technical backbones and 126 sets of hardware production equipment to the villages, helping 43 villages to run 43 hardware and knife and scissors production enterprises. 100 million yuan.

In 1996, China National Hardware Association officially named Daxin Town as a€?China Hardware Towna€?. The town's hardware production has entered a new stage of development. By the end of 2007, the town had a total of more than 400 hardware production enterprises with a registered capital of 200 million yuan, including 6 foreign-funded enterprises and 1 enterprise with annual sales exceeding 100 million yuan. 1, more than 50 million yuan, 17 over 10 million yuan; more than 10,000 employees engaged in hardware production, has formed five major categories of hardware tools, medical equipment, light knife, garden tools, kitchen utensils Main product structure, including: more than 160 enterprises engaged in hardware tool manufacturing, has formed more than 130 product series, more than 3,000 varieties, annual sales of more than 180 million, annual sales of 2 billion, accounting for the town's industry 46% of sales. The products sell well in more than 70 countries and regions such as Europe, America, Middle East, South Africa, Australia, Southeast Asia, etc., and enjoy high reputation overseas. The annual self-operated export reached USD 38.1 million.

Looking back on the development history of the hardware industry in Daxin Town this year, in order to strengthen and do the hardware industry, we mainly start from the following aspects:

First, policy support, leading, and actively provide space for the development of the hardware industry

After 1996, the collective hardware production enterprises of Daxin Town were all transformed, and the operating mechanism with clear property rights and scientific management was established, which fully mobilized the enthusiasm of production and sales. After the transformation of Jiangsu Hongbao Group, the original three hardware tools branch was jointly built into Hongbao Group Hardware Co., Ltd., which has three holding subsidiaries and established with the world's top hardware distributors and manufacturers. Business cooperation, rapid expansion of production, and became the first listed company in Daxin Town.

In 2000, the group company completed sales income of 778 million yuan, profits and taxes of 61.46 million yuan, an increase of 265% and 239% respectively compared with 1996 before the conversion. In 2007, the company realized sales income of 930.1 million yuan and profit and tax of 76.98 million yuan, up by 316% and 299% respectively over 1996. It has become the largest production base of domestic clamp products and ranked first among the top ten hardware industry in the country. Since the mid-1990s, Zhangjiagang City and the township government have created a good external environment for the development of hardware private enterprises in Daxin Town. Hardware production enterprises have developed rapidly, with 20-30 every year. The speed of the home has increased, and the number of hardware companies has grown from dozens of companies in 1999 to hundreds of current ones. The sales have more than doubled since 1999.

Jiangsu Hongbao Group Co., Ltd., Zhangjiagang Tianda Special Tool Co., Ltd. and other leading-level hardware enterprises on the scale and grade have laid a solid foundation for the development of Daxin Hardware Industry. The a€?Hongbaoa€? trademark has been recognized as a well-known trademark in China by the judiciary, and the a€?Xingonga€? brand products enjoy high reputation in the domestic and foreign markets. The rapid development of the hardware industry has also led to the development of a number of related supporting industries. The hardware production of our town has formed a one-stop production of raw materials from the factory to the packaging and exports. It has become an important base for the production of hand tools in the country. Jiangsu Hongbao Group Hardware Co., Ltd. is the largest hand tool manufacturer in the country with an annual output of hardware tools. Tableware knife, beauty knife bag, knife and scissors 18 million pieces, annual sales of 200 million yuan; Zhangjiagang Tianda Special Tool Co., Ltd. is the country's largest bolt cutter pliers, Rama production base, with an annual output of 6.5 million pieces, annual sales 1.08 billion yuan.

Second, set up a chamber of commerce, innovate technology, and actively explore new ways of industry development

The rapid rise of the hardware industry in our town in a short period of time has played a positive role in promoting the development of the hardware industry in the town. However, we are also clearly aware that some enterprises have encountered some contradictions and difficulties in their development. Problems, such as outdated production equipment, backward technology, resulting in irregular production and management, product quality can not be guaranteed, etc. In order to further deepen reform, transform government functions, and regulate the management of the hardware industry, Daxinzhen Hardware was established in October 2000. The Chamber of Commerce and colleagues were accepted as group members of the China Hardware Association. Over the years, the Town Hardware Chamber of Commerce has actively assumed the role of managing the hardware industry in the town. Based on the purpose of serving the enterprise, it has carried out a series of active and effective work.

In January 2007, the Chamber of Commerce held a general election, formed a new council of chambers of commerce, and completed the transformation of the government-run Chamber of Commerce to the Chamber of Commerce. The first is to hold regular economic operation analysis meetings. In 2007, the Chamber of Commerce and the Town Economic Service Center organized an economic operation analysis meeting every quarter. Through the economic operation analysis meeting, the member companies timely grasped the status quo of the town's economic development, and summarized and analyzed the staged operation of the enterprise. Members provide opportunities to exchange their own business conditions, management experience, and investment development ideas, help solve the difficulties and contradictions encountered in the development of the company, learn from each other's strengths, and promote each other, so that the development of the company will continue to grow on a benign track. Be strong. The Chamber of Commerce has a wide range of equipment in the hardware industry, such as outdated equipment, backward technology, weak innovation ability and lack of market competitiveness. Organizing business owners to study and study at home and abroad, this has enabled the business owners to broaden their horizons and expand the product market. After the establishment of the Chamber of Commerce, each year, the town's member units will be organized to participate in hardware tools fairs and fairs held at various levels, with no less than 10 booths at a time. Organized enterprises to participate in the China International Hardware Products Expo held annually by the China Hardware Products Association in Shanghai. By participating in trade fairs and expositions, the hardware products of our town enjoy a certain reputation at home and abroad, thus enhancing the market competitiveness of the products; the third is to organize enterprises to carry out technical exchanges and economic cooperation with domestic and foreign counterparts. Since the establishment of the Chamber of Commerce, it has organized the key backbone enterprises of hardware products in the town to visit Shanghai, Wenzhou, Zhejiang, Foshan, Jiangyin and other places to study and learn from their peers. In November 2003, we concluded a friendly chamber of commerce with the Wenzhou Hardware Chamber of Commerce and strengthened the exchanges between the two associations. At the same time, the Chamber of Commerce also contacted the Taiwan Handicrafts Industry Association through online access to information, and in the name of the Chamber of Commerce, more than 30 people from three groups went to Taiwan to conduct market research and inspections, attract investment, introduce economic partners, and achieved gratifying results. Taiwan-funded enterprises settled in our town; fourth, organized various training activities. In order to continuously update and improve the knowledge and management capabilities of member companies, the Chamber of Commerce adopts the method of coming in, going out, often organizing member companies to conduct class training, organizing special lectures, etc., and conducting multi-level and multi-form training from time to time. Activities to continuously improve the management level of the industry.

The fifth is to guide enterprises to enhance their technological innovation capabilities. The Chamber of Commerce is generally concerned with the status quo of the old hardware products industry, such as outdated equipment, backward technology, weak innovation ability and lack of market competitiveness. Organizing business owners to study and study at home and abroad, this not only enables the business owners to broaden their horizons and expand the product market. And compared with one year, the hardware package of the whole town hardware has been greatly improved, introducing Taiwan's high-speed punching line, forging production line, Russia's hot forging production line, computer marking machine, mold processing center, etc. Cash production equipment and colleagues' production processes have also been greatly improved. The use of cash CAD software for product design has greatly improved product quality and technical content. Many merchants have praised that the production of Daxin Town is close to the level of Taiwan, and some enterprises even surpass Taiwan enterprises. Sixth, it is necessary to do a good job of propaganda for member companies. In 2007, the Town Chamber of Commerce funded the promotion of member companies in the "Zhangjiagang Merchants" magazine. Over the past year, the Hongbao Stainless Steel Pipe Factory, Printing Machine Factory, Worsted Factory, Fashion Factory, Hongbao Real Estate, Xinkai Stainless Steel Products, Enterprises such as Xinfang Group carried out propaganda reports in the magazine "Zhangjiagang Merchants", which has improved the visibility of enterprises to a certain extent.

Third, build carriers, attract investment, and strive to provide a development platform for the hardware industry

In the early stage of the development of the hardware industry, the hardware production enterprises in the town were scattered throughout the country, and some even set up factories in the front and back of the house, which has an impact on the environment, but also is not conducive to the development of enterprises. The town party committee and government clearly saw this point. At the end of 2000, Daxin Hardware Industrial Zone was opened to allow hardware companies to have a better development space. This industrial zone covers an area of a€?a€?6,000 mu. After years of development and construction. More than 50 million yuan has been invested in the construction of basic equipment. The number of enterprises entering the zone has reached 112, of which: hardware enterprises account for more than 70%, and foreign-funded enterprises. The right of our town relies on the hardware industry area to occupy a carrier, and the hardware industry as the main body to increase foreign investment. On the one hand, we built our own hardware investment network, and then on the Internet to engage in investment, on the other hand take the initiative to attack the door to attract investment. With preferential policies and good services, we will attract more merchants to invest in our town. This year, our town has attracted hardware companies from Taiwan, Thailand, South Korea, the United States, Malaysia, Germany and other places to invest in our town. Their advanced production equipment, advanced production technology and advanced management experience will all be upgraded. I really have a huge driving force in the hardware industry.

Although the hardware industry in the town started early, it has developed late. Compared with advanced countries and regions such as Japan, Taiwan and Wenzhou, there is still a certain gap. First, the product grade is low and the variety is single. Most of the hardware companies in the town produce middle and low-end hand tools; second, they lack the scale and top grade enterprises. Among the more than 180 hardware manufacturers in the town, there are only one company with sales of more than 50 million yuan, and only 17 enterprises with more than 10 million yuan. The proportion of large-scale enterprises is still small; Need to be further improved. At present, in the product development, the phenomenon of a€?takenisma€? is relatively common, and the ability to truly own their own products is still poor, and customers are more likely to produce samples. How to do a good job in this article in the hardware industry is a long way to go. After China's accession to the WTO, the globalization of the world economy has become more and more obvious, and the competition in the hardware industry has become increasingly fierce. We feel that it is particularly important to build a corporate brand with technology and challenge the market with quality products. The next step is to:

1. Further accelerate the establishment of the hardware industry system, strive to play the role of the chamber of commerce, strengthen the self-discipline and coordination role of the industry, and provide enterprises with the necessary technical support, personnel training, information consultation and other services.

2. Strengthen technological innovation and create markets with brands. This is the basis for the development of the hardware industry. First, we must improve the technical level of the employees of the enterprise, cultivate more scientific and technological talents who understand technology and management, and improve the overall quality of the enterprise. Secondly, we must introduce advanced production equipment, and some key equipment must be improved as soon as possible. The degree of automation, to the direction of high precision, high efficiency, high-grade, to provide strong power for the production of hardware industry; once again to accelerate the application of information technology in the field of hardware, actively promote the application of CAD, CAM, CAPP in the enterprise, through the product Data management to improve the level of manufacturing standardization, openness and integration. Through technological innovation, we constantly improve the technical content and grade of our products, so as to focus on cultivating brands that have certain influence in industries such as a€?Hongbaoa€? and a€?Xingonga€?, and open the international market with their own brands.

3. Increase investment promotion efforts and form a new pattern of diversified development. We seized the characteristic industry of hardware, increased investment, introduced some large enterprises at home and abroad to invest and set up factories in our town, and let their advanced technology, advanced equipment and advanced management drive the town's hardware enterprises to a higher level. In the same way, it also makes my town's hardware products more colorful.

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