Domestic cabinet hardware market profits are compressed

In recent years, the cabinet market in our country has gradually expanded and there is room for improvement in the future. The hot market of cabinets will inevitably bring about huge demand for hardware accessories. Hardware accessories directly affect the overall quality, function and life of the cabinet, and also affect the aesthetics of the cabinet.

Cabinet hardware market profit is compressed

With the improvement of people's consumption level, China's consumers have higher and higher requirements for cabinets. This will undoubtedly drive the development of the cabinet hardware industry. The market capacity of cabinet hardware is also very large. Cabinet hardware is about to become a hot spot in the new round of kitchen consumption. The cabinet hardware industry will be one of the most competitive industries in the future, and will also spawn a number of well-known hardware brands.

Production costs continue to climb

It is understood that the relationship between domestic cabinet hardware companies and their upstream and downstream is more of a competitive relationship. The supplier mainly gains benefits by increasing the price of input factors and reducing the quality of unit value. For cabinet hardware manufacturers, raw material costs account for a high proportion of total costs, so the potential bargaining power of raw material companies is very strong. What is even more unfortunate is that due to the relationship of the national economic system, raw material companies are generally state-owned large-scale metallurgical groups. Their market position is stable and there are many buyers. Therefore, when the prices of raw materials such as aluminum and copper rose in recent years, most of the costs were passed on to Manufacturers.

Offline profits are even more compressed

With fierce price competition, the process gap between domestic mid-market brands and low-end market manufacturers is narrowing. Many small and medium-sized enterprises are striving to enter the mid-range market, and price competition is their most direct way, although domestically First-line cabinet hardware brands are struggling to move closer to the high-end market. However, due to the low quality of design and R&D, and inadequate patent protection, competitors have imitated and plagiarized a large number of products, making the domestic first-line cabinet hardware brands fall into the quagmire of price wars. The price of the terminal could not be increased, and the price of raw materials rose again. The offline profits of cabinet manufacturers were reduced.