Home Hardware Industry and Feasibility Evaluation and Forecast Report on Investment Strategy - Published by China Golden Credit

Report Publisher: China Golden Credit International Consultancy "2024-2030 In-depth Analysis of the Entire Industrial Structure of the Home Hardware Industry and Feasibility Evaluation and Forecast Report on Investment Strategy - Published by China Golden Credit"

Professional and authoritative project feasibility report & business plan preparation service agency (in line with the requirements for the preparation of project feasibility study reports issued by the Development and Reform Commission) - China Golden Credit International Consultancy: With 13 years of project preparation service experience, it provides one-stop solutions such as project feasibility report & business plan preparation, design, planning, and consultation for various project establishment, investment and financing, business cooperation, loans, land approval, mergers and acquisitions & cooperation, investment decisions, industrial planning, overseas investment, strategic planning, and risk assessment. Helps project implementation and landing, and improves the passing efficiency of project units' project declaration.

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1. Development Overview of the Home Hardware Industry

Home hardware refers to metal components used in living scenarios such as kitchens, bedrooms, bathrooms, living rooms, and balconies, providing functions such as storage, decoration, connection, and movement. It is an important part of modern household items, featuring durability, rust prevention, moisture resistance, etc. It can be divided into basic hardware, functional hardware, storage hardware, etc. The specific introduction is as follows:

After more than 30 years of development, China's hardware industry has currently formed a well-matched and complete industrial cluster for home hardware manufacturing. With the continuous changes in social needs and the continuous innovation of materials and technology levels, enterprises in the home hardware industry have significantly improved in terms of scale, management, efficiency, product types, quality, and technological processes.

On the other hand, as a necessary consumer product in building and house decoration, under the background of consumption upgrading and the continuous increase in consumers' demand for mid-to-high-end home hardware products, the market size of China's home hardware industry has been continuously expanding. According to the report, in 2023, the market size of China's furniture hardware industry was approximately 226.11 billion yuan. It is expected that the compound annual growth rate (CAGR) of the market size in the next five years will reach 7.6%, and the market size will increase to 324.45 billion yuan in 2028, which is an important component of the future incremental market of China's hardware industry. The main production areas of China's furniture hardware industry are concentrated in economically developed regions such as the Pearl River Delta and the Yangtze River Delta in the eastern coastal areas.

2. Technical Level and Technical Characteristics of the Home Hardware Industry

1. R & D and Design Level

R & D and design are the power sources for the technological development of the home hardware industry. With the rapid economic development, people's quality of life has been greatly improved, and consumers' demand for household products has shifted from practicality to intelligence, comfort, and convenience. As an important bridge for the realization of household product functions, home hardware has higher requirements for the R & D and design of hardware products. For mature home hardware products such as hinges and slides, their basic functions have met the needs of downstream customers. How to further improve the delicacy and convenience of products and reduce product costs depends on the further R & D and improvement of home hardware enterprises.

At the same time, with the gradual development of the home furnishing industry towards customization and intelligence, the home hardware industry has gradually transformed from the original basic hardware OEM model to a provider of overall home hardware solutions. Therefore, a perfect design and R & D system and the ability to keep pace with the times in design and R & D are important guarantees for home hardware enterprises to provide better functional solutions for home hardware and a wider range of product choices, and are an important manifestation of the technical level of hardware industry enterprises.

2. Production and Manufacturing Capacity

Home hardware is a key component for achieving style changes and functional improvements in downstream home products. The grade and quality of downstream products largely depend on the precision of home hardware products. Therefore, the technical level of production and manufacturing is one of the key factors affecting the technical level of the industry.

Production and manufacturing capacity is a comprehensive reflection of an enterprise's production management level and automation degree. An enterprise's production management level comes from long-term experience accumulation, and a high-level automated production is a powerful guarantee for enterprises to achieve high-quality and efficient production. The production and manufacturing of home hardware products involve many steps, multiple batches, and large quantities. The investment in automated equipment and the automatic control of the production process can ensure the orderly progress of enterprise production, guarantee the stability of product quality, reduce product costs, and bring scale benefits.

3. Application of Information Technology

There are many types of home hardware products, and their production has the characteristics of multiple steps, multiple batches, and large quantities. The application of information technology can realize the full-process management of products from R & D and design, order placement, procurement management, production delivery, warehousing and logistics, etc. On the one hand, the application of information technology helps enterprises control product quality in all aspects and ensure the stability of product quality; on the other hand, the full-process management of production helps improve and optimize organizational processes, improve the level of production and operation management, and achieve the purposes of controlling costs, improving efficiency, and reducing losses through the application of information technology. Therefore, the application of information technology is an important means for home hardware enterprises to improve efficiency, strengthen management, and obtain enterprise competitiveness.

3. Development Trends of the Home Hardware Industry

① Digitalization of the Production Process

There are many types of home hardware products, and the production process involves many steps, multiple batches, and large quantities. Therefore, stable and efficient automated production is a necessary way to improve production efficiency, obtain scale advantages, and enhance enterprise competitiveness. In this context, home hardware enterprises continue to improve the automation level of the production process, replace manual labor with automated equipment, and automate the production process. By building a digital platform, they aim to build more intelligent factories. In the future, the manufacturing technology of home hardware will continuously integrate with high-end technologies such as the new generation of information technology. A complete digital system will be established in the R & D, design, and production processes of home hardware products, thereby improving the operating efficiency of mechanical equipment, and the industry will continue to move towards "digitalization" and "intelligence".

② Intelligentization of Hardware Products

With the progress of industrial level and technology, the improvement of people's quality of life and the pursuit of a better life, consumers' requirements for household products have gradually transitioned from traditional firmness and durability to meeting the above requirements while also satisfying their pursuits of comfort, convenient loading and unloading, and intelligent control. This leads the downstream hardware industry to not only meet the traditional mechanical properties, rust prevention, moisture resistance, and fatigue resistance of moving parts of hardware, but also assist household products in meeting consumers' demands for intelligent, comfortable, and convenient home spaces. Currently, the home hardware industry has gradually added elements such as controllers and sensors to products to realize product intelligence. With the further popularization of emerging concepts such as smart homes, in the future, the promotion and application of smart homes will become one of the main driving forces for the growth of the home hardware market.

③ Home Hardware Enterprises Compete to Build Their Own Brands

There are a large number of domestic home hardware enterprises, and the competition is fierce. European home hardware enterprises such as Blum have formed brand advantages due to their long-term industry experience and early branding paths, and therefore enjoy extremely high brand premiums. In response, domestic home hardware enterprises have gradually realized the importance of the branding path. Therefore, domestic home hardware enterprises represented by Dongtai Hardware, Hangao Group, TUTTI, Xinghui Co., Ltd., and Guangdong Jusen have begun to build their own hardware brands to provide high-quality home hardware products to the market.

④ The Industry Concentration is Expected to Further Increase

The home hardware market is currently in the early stage of brand concentration development. A large number of small and medium-sized enterprises constitute the main participants in China's low-end home hardware market. These enterprises have small production scales, weak brand awareness, insufficient independent R & D and design capabilities, and obtain survival space through low-price competition. Their products have low technical content and serious homogeneity.

With the increase in labor costs and the intensification of market competition, the profit space of unbranded, non-independent R & D-capable, and low-value-added home hardware enterprises that rely on low-quality and low-price competition to obtain market space will be further squeezed. While leading home hardware enterprises in the industry rely on scale advantages to better concentrate on researching and developing core products, increase the proportion of automated production, greatly improve production efficiency, achieve cost advantages, and stand out in industry competition. Home hardware enterprises that do not have scale advantages will gradually be absorbed, merged, or eliminated. The industry will gradually develop towards standardization and large-scale, and the industry concentration will further increase.