Fastener companies need to go out of low-price competition

Due to the unreasonable structure of traditional fastener products in China, the low product grade and low added value have caused prices to be difficult to increase. Although the global financial crisis and overseas anti-dumping actions have caused a significant drop in the growth rate of China’s fastener exports, we must also realize that it is the irrational structure of our fastener industry that will cause this situation.

The rise in raw material costs has caused companies to increase product prices, but the premise of product price increases is the increase in technology and brand strength. This is a continuous process. This is a bottleneck for small and medium-sized fastener companies. They need to survive hard. “Transformation and upgrading are the inevitable choices facing Chinese fastening companies. Although the cost will increase after product upgrades, the increase in product prices can completely offset the increase in costs.” Luo Baihui, secretary-general of the International Mould, Hardware & Plastics Industry Suppliers Association pointed out The fastener products of special industries have advantages, such as fasteners used in aviation, military, and railway industries. The special nature of these products determines the superiority of their prices, so domestic fastener companies can focus on developing this. Market.

At present, there are tens of thousands of fastener companies in China, but only 60 of them have an annual output value of more than 100 million yuan. Compared with overseas companies, our strength is obviously weaker. Therefore, China's fastener manufacturing enterprises must step out of the old path of low-cost competition, and then pay attention to brand building and enhance the company's core competitiveness.