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Domestic hardware industry urgently needs transformation and upgrading
The domestic hardware industry, which plays a crucial supporting role across various sectors, often remains unnoticed. Yet, from transportation bicycles to indoor lighting and bathroom fixtures, it is an essential part of everyday life. In recent years, the hardware and electromechanical market, once full of energy in the provincial capital, has experienced a decline. What has led to this downturn, and how can the market be revitalized? To find out, reporters visited the local hardware and electromechanical market.
Leng Xin, who has worked in the hardware and electronics industry for 16 years, shared her experience. Before opening a store at Shengli Street Hardware Market, she had to relocate after the area was demolished. Now, she runs a shop in a large-scale hardware and electromechanical market near the South Second Ring Road. However, she admits that business has been tough in recent years.
Annual sales have dropped significantly, and many surrounding shops are struggling. Some have even posted notices of transfer. A hardware store operated by Hu’s distributor hasn’t been open for days. Since 2009, its turnover has steadily declined. Profits have dropped from 60% to just 20% now. While retail sales remain stable, bulk procurement is no longer viable. Watching the market continue to cool down, he says, “If this trend continues, I may have to cancel my sales agreements with manufacturers early.â€
The bleak market conditions and high inventory pressure have increased the pessimism among hardware market operators. The market's reach has also shrunk. Currently, there are several hardware and electrical machinery markets in the city, such as Runde International, Freeport, Huazhong Jin, Dingjian, and North China Hardware & Electrical City. However, their overall size is small, and their decentralized layout makes it difficult for foreign buyers to find everything in one place, leading to a reduced radiation radius.
With the rise of the Linyi hardware market in Shandong, many merchants from Shanxi and Shandong have shifted their operations there. He Lianhai, General Manager of Runde International Hardware & Electromechanical City, noted that while Shijiazhuang has advantages in location and transportation, customers from Taiyuan, Datong, and Yuci are bypassing the city and going directly to Linyi for their purchases.
Market dispersion has weakened the overall competitiveness of the hardware sector. Once a leader in the national hardware and electromechanical market, Shijiazhuang's hardware market had a wide influence, reaching as far as the northeast, north, and northwest. The Shengli Street Hardware Market, known for its long history and strong reputation, used to see massive transaction volumes, with many merchants achieving annual turnovers in the millions. Some even surpassed 100 million yuan in sales.
However, with urbanization and the expansion of the city, the hardware and electromechanical market located in the city center faces limited growth space. Its relocation from the urban core is becoming a common trend. But the dispersal of the old market and the lack of a new, influential market have made it hard to build a unified force, greatly reducing the overall impact of the Shijiazhuang hardware market.
As the market becomes less attractive, its overall competitiveness continues to decline. Operators now realize that the traditional hardware and electromechanical market must undergo transformation. A long-term, sustainable development model requires a high-grade, large-scale, professional hardware and electrical wholesale market.
Zhang Weimin, Deputy General Manager of Shijiazhuang International Trade City, believes that while North China has a large demand for hardware and machinery, the current market lacks leadership and scale. The construction of a high-end hardware and electronics trading city, along with the ongoing upgrades of existing markets, represents the future trend of the industry.
Zhu Renhe, Chairman of the China Wujiadeng Chemical Industry Business Association, also emphasized that the era is pushing trade markets toward more intensive and comprehensive development. The trend of hardware and electromechanical markets is an irreversible shift in the industry.
Local authorities have also acknowledged the need to support relevant departments while respecting market laws. They believe that certain outdated markets should be phased out according to market dynamics.
In response, stronger markets like Runde International are expanding their operations, adjusting strategies, and building brand recognition to become industry leaders. At the same time, the International Trading City, a key commercial project under construction, plans to develop three high-standard hardware and electromechanical markets. These will include independent shops, shopping malls, boutique stores, and aim to establish a logistics distribution system. The project also includes multi-functional platforms such as guarantees, international trade, e-commerce, exhibitions, and comprehensive business support, all aimed at driving the industry forward.