It is not easy for hardware to enter the market of small towns

The hardware industry belongs to China's traditional industry. After decades of development, it has initially formed an industrial system with relatively complete product categories and a certain production scale and development capability.

The hardware industry maintains a 20% annual growth rate, and the total annual output value reaches 400 billion yuan. The export volume of the hardware industry ranks in the top three of the light industry, and its products are spread all over the world. China is becoming a veritable hardware industry power.

It is not easy for hardware tools to enter the small town market smoothly. As the country advocates the development of new-type cities and towns, towns and cities have become the focus of close attention of the industry and the prospects for the future are good. Hardware and tool companies want to enter the small town market smoothly, there will be some difficulties and need to be resolved effectively.

As the transport facilities of small towns are not perfect and the population is more dispersed, the logistics costs are definitely higher than the current cities. It is an inevitable trend for China’s economic development to open up small town markets, and it is also the direction for the central government to develop strategic planning for the county economy. Therefore, companies must adjust their strategic direction, organizational structure, and operating model to overcome their difficulties and achieve success.

As a hardware company, to get products into small towns, you first need to go into small towns to understand the local residents' living habits, understand their specific characteristics, and then develop targeted products. Only by producing products that local residents really need can they eventually win the market.

It is obviously inaccurate for hardware industry companies to continue to develop rural markets according to the current sales model. The rural market has a wider area and it needs to develop a flat sales network. Companies need to organize certain forces to investigate the market and formulate practical strategies. Of course, reducing logistics costs effectively is also crucial. Synergy can effectively reduce logistics costs and achieve effective integration of resources.

Hardware tools companies need to seize the development strategy of products to the countryside, make changes in corporate organizational structures, invest resources in research, formulate new operating models, cultivate talents, and organize strengths to implement them.