Analysis Of Hardware Enterprises' Difficulties In Entering Small Town Market

　　 China The hardware industry develops at an annual rate of 20%, with an annual output value of 400 billion yuan, which is higher than that of the household electrical appliance industry. The export volume of China's whole light industry accounts for 25% of the total exports of the country, and the export of hardware industry ranks the top three in light industry. China's hardware products are almost everywhere in the world, and China is becoming a great hardware industry.

It is very difficult for hardware tools to enter the market of small towns in China. In the face of the development of China's hardware enterprises in the small town market, we need to see some problems in the industry market. In the future development, the hardware and tools industry is looking for a new way out, creating a rural market and huge market development space to make the industry very optimistic.

　　 First The logistics cost is very high: because the population is highly dispersed, the transportation facilities are backward, and the sales network is not perfect enough. The population of the potential rich group in small towns is 135 million, which is equivalent to 137 million of the total population of a second tier city.

The average income of the two families is the opposite, but the former is scattered in 12 thousand small towns and 2000 village counties. The difficulty and cost of developing the market are very high. This is also the reason for the failure of Changhong home appliances to the countryside in 1990s. Therefore, we must have sufficient knowledge and preparation for the market development of small towns. Enterprises opening up small towns market is an inevitable trend of China's economic development. It is also the direction of the central development of county economic strategic planning. Therefore, enterprises must abandon the short-term behavior, and must adjust their strategic direction, organizational structure and operation mode to overcome difficulties and succeed.

Because the rural market is highly dispersed, the cultural differences are great, and the living habits and natural environment are very different. Therefore, they have different requirements for family decoration. They are not only different from cities, but also different from rural areas. In view of this situation, Luo Baihui suggests that hardware enterprises first study their habits and habits, and develop their products according to their characteristics. For example, they need to have stacking rooms to place tools, various kinds of sundries and food, and so on. Because of the differences in the use environment, there will be special requirements for the wearability of tiles and their characteristics. Only by understanding them and designing their favorite products will they be welcomed by the market.

　　 Secondly It is necessary to set up a sales network: the sales mode of hardware and tools enterprises must not be applicable to the rural market. Because of the vast rural area, it is necessary to develop a flat sales network, and enterprises should set up specialized leading organizations, organize the research market of force, formulate rural market development strategy, and train sales personnel, which is a long-term action related to the survival and death of enterprises, and any short-term behavior is doomed to failure.

The second is to reduce the cost of Logistics: in the early days of American development, the famous Sears company transported products to the countryside through mail order channels, and through this channel, the mail order manual specially designed for farmers was sent to the farmers through the post office. This is the market synergy, that is, the distribution of goods through the post office channel.

So our current way to reduce logistics costs can only be achieved through synergy. Especially in the current home appliances to the countryside, the car goes to the countryside has become a major trend. Hardware enterprises must study how to make use of these existing channels and share resources to share in reducing logistics costs. Building materials industry is the key to truly go to the countryside and reduce logistics costs. This requires the concerted efforts of the industry and even the industry to develop a new model to achieve the reduction of logistics costs.

The development of highly potential Township markets is a major trend, but also a fertile soil for cultivating brands. But opportunities and challenges coexist. Only enterprises will take hardware tools to the countryside as a development strategy instead of going through the temporary expediency of crisis, and change in the organizational structure of enterprises, invest resources in research, formulate new business models, train talents, and organize the strength to carry out, so as to seize opportunities and become winners.