Hardware and electrical machinery must seek new ways out, actively seeking change and preparing for the winter.

China has gradually become a major global producer and exporter of hardware, and is now one of the world's largest hardware producers, possessing a vast market and consumption potential. However, the current downturn in the hardware and electromechanical industry is ostensibly due to external factors such as the entry of multinational corporations into China. The underlying issue, however, lies in the low industry concentration and severe homogenization of competition within the hardware and electromechanical sector. Although China has over 200,000 hardware and electromechanical enterprises, the scale of enterprises with significant output remains insufficient, and the proportion of enterprises producing high-tech, high-value-added hardware and electromechanical products is relatively low.
　　Lan Xiaohua, a special researcher at the Chinese University of Hong Kong, pointed out that Chinese hardware and electromechanical stainless steel enterprises, especially growth-oriented ones, must be clear-headed and seize strategic development opportunities, setting reasonable market marketing goals and avoiding going against the current, which would lead to their demise. Some small hardware and electromechanical enterprises have been rapidly squeezed out, abandoning brand management and becoming contract manufacturers for larger brands. Lan Xiaohua, a renowned brand marketing expert, stated that the annual compound growth rate of hardware and electromechanical enterprises has reached 30% over the past decade, but now faces a completely new situation. 'Current orders are mostly passive; we hope to achieve 30% to 40% active business in the next two to three years to survive,' said Ye Gui, secretary-general of the Yangjiang Hardware Association, in an interview. He revealed that while the first half of the year performed better than expected, with sales growth of 19%, sales have been unoptimistic since July, with October orders lower than last year. Based on the current market conditions, he is not optimistic about the fourth quarter or the hardware tool market in 2013.
　　Hardware and electromechanical brands should no longer follow the trend but should emphasize their own differentiated styles while pursuing popular elements. Lan Xiaohua suggested that enterprises should abandon short-term behavior and adjust their strategic direction, organizational structure, and operational model to overcome difficulties and achieve success. Lan Xiaohua pointed out that the future of the hardware industry lies in providing professional and personalized product services. Enterprises need to develop their core competitiveness, fully reflect differentiation, increase investment in product research and development, and make products truly accepted and loved by consumers. The "2013 China (Wenzhou) International Industrial Expo," hosted by the Wenzhou Municipal People's Government and China National Machine Tool Corporation, will be held from March 15-17, 2013, at the Wenzhou International Convention and Exhibition Center. Currently, 1,000 companies from 29 countries and regions have registered to participate, with the exhibition scale, number of exhibitors, and international participation all increasing by more than 9% compared to the previous session, setting a new record. According to reporters, the emergence of new products, improved technology content, targeted research and development for specific markets, diversified marketing, product serialization, increased emphasis on brand image and innovative design, all indicate that the Chinese hardware industry remains optimistic about its future development prospects. It is encouraging that many well-known domestic and foreign innovative enterprises and functional hardware and electromechanical brands actively participated in the exhibition, creating an atmosphere of technological hardware and electromechanical products and quality life. In the face of new challenges, 'innovation for survival' has become the motto of many hardware and electromechanical enterprises. 'The hardware exhibition's upward trend shows the confidence of our enterprises. Our enterprises have confidence in their products, the market, and themselves,' said Zhu Renhe, chairman of the China Five Golden Hardware Association. He added that this year may be difficult, but next year will be even more challenging, with downward pressure on the industry, and hardware and electromechanical enterprises must recognize the situation, actively seek change, and prepare for the winter.