I am from Linyi, Shandong. I plan to invest about 300,000 yuan to open a factory. I plan to work in the hardware industry. Do you have any experience? I hope experts can help clarify! ! ! Thanks

Linyi is still a hardware industry and trade city. Generally speaking, the hardware factories there are relatively low-end. People in the industry joke that almost all the products with poor quality in the country come from Linyi. Of course, this is just a sentence. Just kidding. It is not difficult to see two problems from this sentence: First, Linyi products have a relatively wide radiation coverage across the country; second, the price and quality of Linyi products need to be improved;

Let’s talk about one group first Data (from China Hardware Products Association and Linyi Municipal Government):

At present, Linyi’s hardware industry economy accounts for 41% of the industrial economy, becoming an important force for the sustained economic growth of Hedong District. Hedong District develops Jiuqu, Xianggong, There are 4 hardware manufacturing and processing subdistricts and 82 hardware processing professional villages in Fenghuangling and Taiping. There are 590 hardware manufacturing and processing enterprises, more than 2,100 processing households, and more than 20,000 employees. It has cultivated Menngling Group, Qiangsheng Tools, and Lux There are 5 companies with an annual output value of more than 100 million yuan, including Da Hardware and Aite Hardware, 21 companies with an annual output value of more than 50 million yuan, 36 companies with an annual output value of more than 30 million yuan, and 58 companies with an annual output value of more than 10 million yuan.

In 2008, the hardware industry in Hedong District achieved sales revenue of 7.38 billion yuan and profits and taxes of 590 million yuan; the district has 26 enterprises with self-operated export rights, and the annual export earnings reached 120 million US dollars. Taking the hardware market as an example, Hedong Hardware City alone has 1,651 operating households, 1,656 stalls, more than 900 business front rooms, nearly 40,000 direct employees, and 12 major categories of merchandise and more than 1,100 subcategories. In 2009 The annual market turnover reaches 8.3 billion yuan, and its products mainly radiate to Inner Mongolia, Shanxi, Hebei, Jiangsu, Anhui, Shandong, Henan, Beijing, Tianjin, the three northeastern provinces and all over the country, and even countries such as Japan, South Korea, and Southeast Asia.

From this point of view, the overall community background of Linyi’s hardware industry is very good. It is suitable for investment in this field.

Then, we have to see which aspect of hardware is more suitable. Personally, I think Lanyi Hardware does a lot of hand tools, and also a large part of agricultural miscellaneous products. Tools;

Currently, Linyi Hardware Tool Factory has three parts: one is for branding: the better ones include Bunker and Ingram Micro, most of their products are branded and packaged It is what the industry calls OEM, that is, the product is produced by someone else, and you make your own brand to promote it; generally speaking, from the perspective of the brand's operating philosophy, there is still a gap with the first-class domestic brands (personal comparison of Bunker value).

The other category is to produce and sell by themselves, and also supply to those who make brands: I know that the investors with some strength are: the investors of Yichuan Industry and Trade Company (can’t remember the specific name); These factories are factories that actually produce. At the beginning, their products were mainly OEMed for some brands and exported. Now most of them are starting to focus on making their own brands.

There are also a large part, those in very small workshops, and this proportion in Linyi is still very large. Mainly produces products targeted at low-end users. For example, the agricultural products mentioned above.

The first two categories have higher capital requirements, technical requirements, management, operations, and talent requirements, while the investment threshold for the third category is very low. Three or five people can make it with just a few pieces of equipment.

Then let’s take a look, what specific product should we make? Hardware products cover a wide range of areas. From the terminal point of view, the most common ones are automobile maintenance, mining, machinery, and household products; from the product itself, they include measuring tools, knocking tools, wrenches, twisting tools, etc. . This needs to be carefully considered, and then comes the market. How to sell? I think Linyi generally has one factory and one store. That means opening a factory elsewhere and then opening a store in the hardware city for sales. This method is suitable for There are certain benefits for a start-up factory, but you still have to participate in some exhibitions or go to various places to run the market