How Traditional Hardware Breaks Development Bottleneck

The article discusses how traditional hardware industries in China have faced significant development challenges due to a lack of innovation and reliance on outdated business models. Since the country's reform and opening up, the economy has experienced rapid growth, and the hardware sector has followed suit. By 2010, the scale of hardware imports and exports reached an all-time high, leading to an explosion of new companies entering the market. However, this surge also intensified competition, and many businesses struggled to survive. Traditional hardware companies often rely on a single competitive model—buying low from manufacturers and selling at a slight markup. While this approach seems safe, it lacks long-term sustainability. Experts warn that such businesses are like "rootless weeds," vulnerable to being outcompeted by more agile and innovative players. To break free from this bottleneck, companies must invest in independent research and development (R&D) and production capabilities. This not only helps control costs but also enables faster responses to market trends and opportunities. In addition to R&D, diversifying sales channels is another key strategy. Traditional hardware companies used to wait for orders, but now they need to be proactive. Leveraging multiple sales platforms, both online and offline, allows them to reach a broader audience and reduce dependency on any single channel. The rise of e-commerce has transformed the way products are sold, making it easier for hardware companies to expand their reach. One of the most impactful changes has been the integration of the internet into hardware sales. Just 15 years ago, buying hardware online would have seemed absurd. But with the rise of platforms like Alibaba, online shopping became mainstream. Today, even hardware products are being sold through e-commerce, opening up new avenues for growth. Companies that embrace digital transformation can access customers across different devices—PCs, smartphones, tablets—and share real-time product updates anywhere, anytime. By innovating in sales channels and embracing technology, some hardware companies have managed to stand out in a crowded market. Experts believe that the future belongs to those who combine traditional industries with information technology. As the digital age continues to evolve, the integration of hardware and IT will not just be a trend—it will become a necessity for sustainable growth.

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