China's small and medium-sized hardware companies and dealers are caught in a crisis of survival

**Abstract** In today's unpredictable global economic environment, domestic housing prices and household goods are on the rise. How can small and medium-sized hardware companies navigate this challenging domestic market, especially with the implementation of capitalist protection policies and the removal of export tax rebates? Meanwhile, how can large enterprises adapt and successfully enter international markets? The Chinese hardware industry still faces significant challenges, such as low independent innovation capabilities and weak brand recognition. Can it break free from the constraints of foreign development models and find a sustainable path forward? Since China joined the WTO, the wave of economic integration has accelerated the transfer of global manufacturing to mainland China. This trend is expected to continue, positioning China as a major global manufacturing hub. Recently, at the China International Building Decoration Expo, it was revealed that the construction-related decoration industry is undergoing a major transformation. Despite the vast potential in the domestic construction and decoration sector, most companies remain small and fragmented. Notably, there is currently no listed company within the domestic hardware industry. "Even though the door lock market alone is worth 40 billion yuan, the entry barriers are so low that countless companies operate in this space," said Cao Hantian, managing director of a Guangdong-based hardware firm. He added that many businesses have closed down in the first half of the year, signaling that the domestic hardware industry is entering a phase of consolidation. Only large enterprises with strong R&D capabilities and brand strength will emerge as winners. **Industry Trends** According to data from the China Building Decoration Association, the output value of China’s building decoration industry grew from 660 billion yuan in 2002 to 2.1 trillion yuan in 2010, reflecting a compound annual growth rate of 15.57%—far outpacing the 11.46% average annual consumer spending growth during the same period. The decorative hardware industry is closely linked to the construction and decoration sector. The rapid expansion of the latter should drive the former. However, factors like domestic property market restrictions, high CPI, and the European debt crisis in 2011 have cast doubt on the outlook for the decorative hardware industry. Many small and medium-sized firms are struggling to survive. Industry experts argue that this crisis highlights long-standing weaknesses in the sector. There are numerous small and medium-sized decorative hardware companies, but most lack systematic management, technical talent, and clear development strategies. As a result, their growth has been severely limited. Over decades, the Chinese decorative hardware industry has evolved through stages such as factory direct sales, product wholesale, regional distribution, and brand agency. However, throughout these phases, a single marketing model has dominated, with few companies breaking away from this pattern. This has led to a lack of strong local brands in the sector. **Urgency for Transformation and Upgrading** In recent years, issues like resource shortages, rising costs, and fluctuating exchange rates have made the challenges for the decorative hardware industry more evident. It's time for a real transformation. Most company leaders understand this well. Many previously export-focused businesses are now shifting their attention to brand building and adjusting their strategies according to market dynamics and their own strengths. A manufacturer who has long engaged in OEM production shared: "Due to years of exporting or producing for foreign clients, many Chinese hardware companies have good product quality. But the key is to move away from the old model of heavy production and light branding. Strengthening brand management and corporate image awareness will help them gain the market position they deserve." An industry expert noted that small and medium-sized decorative hardware companies should first focus on internal management improvements and establish efficient mechanisms while prioritizing brand development. Second, they must invest in technology and talent. By maximizing the conversion of scientific research into productivity, they can reduce costs despite rising raw material prices, ensuring product innovation and fashionability, which is crucial for building a strong brand image. Third, companies should collect market information and conduct regular research to guide product development based on consumer needs, ensuring that new products meet market demand. Finally, they should shift from a single-product marketing model to a “one-stop” approach, integrating upstream and downstream industries to stimulate consumption. This not only revitalizes the market but also brings greater profitability to the company. We believe that after such transformations, small and medium-sized decorative hardware companies can target third- and fourth-tier markets, aiming to become industry leaders in those regions. This will provide a solid foundation for future expansion into first- and second-tier markets.

Hydraulic Valve

A hydraulic valve is a device used to control the flow and pressure of hydraulic fluid in a hydraulic system. It is typically made up of a valve body, which contains the necessary ports and passages for fluid flow, and a valve spool or poppet, which is responsible for regulating the flow of fluid.

Hydraulic valves can be classified into various types based on their function and design. Some common types include:

1. Directional control valves: These valves control the direction of fluid flow in a hydraulic system. They typically have multiple ports and can be used to control the movement of hydraulic cylinders or motors.

2. Pressure control valves: These valves regulate the pressure of the hydraulic fluid in a system. They can be used to maintain a specific pressure level or limit the maximum pressure.

3. Flow control valves: These valves control the rate of fluid flow in a hydraulic system. They can be used to adjust the speed of hydraulic cylinders or control the flow to different actuators.

4. Check valves: These valves allow fluid flow in one direction while preventing it from flowing back in the opposite direction. They are commonly used to maintain pressure in hydraulic systems or prevent backflow.

Hydraulic valves are essential components in hydraulic systems, as they enable precise control and efficient operation. They are commonly used in various industries, including manufacturing, construction, agriculture, and automotive.

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