Why The Lock Industry is Competitive?

In order to recover funds and relieve the inventory pressure, today's home market and customers arrange break-even sales. Then, the door and window locks sales increase accordingly. At present, the lock market performance is as follows: In terms of domestic sales, there is a good trend for door locks, handle locks, anti-theft locks, hinges, door suckers, etc. The according turnover is also high. Chain locks, cam locks, motorcycle padlocks and disc cam locks are quite popular with consumers and their sales amount is considerable. In terms of export, foreign businessmen mainly make inquiries and return orders, with strong wait-and-see atmosphere. The sales volume of traditional style is stable and the prospect is broad.

                                                Cam Lock

In most people's eyes, the value of a lock is low. The value of a general household lock is from  a few yuan to dozens of yuan. But from ancient times to now, every family needs locks. When people's impression of locks is still "Iron General", the domestic lock technology is changing with each passing day. China has become the world's largest producer and consumer of locks. The annual sales volume of the domestic lock industry is more than 40 billion yuan. The production capacity is more than 2 billion sets. And the annual export volume is more than 10 billion yuan. In the future, the lock market will continue to grow at a high speed of more than 20% per year. With the trend of global economic integration, China's lock industry has begun the road of internationalization and brand industry.

The sales volume of the traditional style is stable and the prospect is broad. As the new year is approaching, people's demand for traditional door locks has increased, such as spherical locks, handle locks, plug-in locks, etc. Most suppliers also produce door locks according to different demand levels in urban and rural areas, and the sales prospect is very good.

However, at present, about 88% of the lock products in the market comes from Zhejiang Province. Among them, about 28% are from Yiwu, and the proportion of manufacturers' direct sales is as high as 705%. The main products are middle and low-grade locks, and high-end products are scarce. As the lock industry is a labor-intensive industry, the entry threshold is low and the degree of specialization is not high. So, the competition is increasingly fierce.

Lack of the brand awareness

China's lock enterprises are small in scale and there are not many leading enterprises, which can not promote the development of the lock industry. China's lock belongs to the low-end market. Enterprises themselves lack brand awareness and do not pay too much attention to the establishment of brands. Some enterprises only limit their development by the factors such as workshops, capital and human resources.

Increase of raw material cost

The recent increase in steel costs has led to an increase in the cost of many downstream industries. The lock market is also no exception. The increase in the cost of raw materials has limited the development of some enterprises. It is possible that some enterprises will face bankruptcy, and some enterprises will increase the price of products to digest the cost increase. In this way, the profit space of enterprises will be smaller. And the competition of enterprises will increase. It will influence the establishment of the enterprise brand. So, the development of China's lock market is slow.

High-end lock products

A new round of technical competition has begun in the lock industry, and the development trend of high-end products with high technology is obvious in the future. In recent years, with the rapid development of pillar industries such as residential buildings, automobiles, medium and high-grade office buildings and hotels, as well as the increasing demand of national defense, public security and financial systems for highly defensive locks, high-end locks have become popular.

Because the high-end lock technology is high, more prominent humanization and personalized characteristics, the product profit is relatively high. In addition, the replacement speed of lock products is accelerated, and high-end locks will gradually become the mainstream of locks. According to the locks industry estimates, the market prospect of high-end locks will be considerable.

Establishment of enterprise brands

In the process of the enterprise development, the brand have a very close relationship with and the enterprise product price. The product price has always affected the sales revenue and the profit of the enterprise. In addition to the performance, the technical content and the use of the product, there is often an invisible thing that determines the price of the product, that is, the enterprise brand. In the trade field, buyers choose a certain brand of products. As long as the product has good quality, the brand has value. Even if the price is much higher than other similar products, consumers will still buy it and take the high price as a symbol of the noble identity.
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