What are the Three Business Models of Hardware Fitting

Hardware refers to various metal devices made by forging, rolling, cutting and other physical processing of metals such as Zinc die casting, steel, and aluminum. According to the purpose of the product, it can be divided into tool hardware, construction hardware, lock security, kitchen and bathroom hardware, daily hardware, household hardware, and accessory hardware.

Some of the daily hardware products are tool-type consumer goods necessary for people's lives, and the other part of the hardware products are mostly not final consumer goods, but as auxiliary products of industrial manufacturing, semi-finished products and tools used in the production process.

Due to my country's abundant raw material resources and low labor costs, my country has become one of the world's major hardware production and trading countries. At present, the world's main production and trading countries for hardware and tools are distributed in three continents: Europe, America, and Asia, forming a competition pattern between developed countries and emerging industrial countries. Among them, hardware products in developed countries mainly produce high-end hardware products, and the base of low- and medium-grade hardware products is mainly in Asia.

There are three main business models for hardware production: original equipment manufacturer; original design manufacturer; original brand manufacturer. The hardware industry has a long history and is a labor-intensive enterprise with a certain technical content. In the context of booming supply and demand, its role in increasing employment and local economic benefits is significant. Therefore, after long-term development in China, a large number of scales and strengths have been formed. Hardware company. Most companies still focus on OEM production, and a few companies with strong strength and clear strategies have carried out ODM and even part of OBM production.

In the choice of business model, the company's R&D strength is the main factor. A small number of companies that are shifting their model focus to ODM or even OBM are in the high-end position of the industry, with large scale, high product quality, high technology content, and strong profitability. The remaining companies are at the middle and low end of the industry and have poor profitability. With the increasing importance of technical factors, industry competition is becoming increasingly fierce, and the differentiation between Hardware fitting enterprises is increasing.