Up to now, there are more than 2000 producers and processing enterprise in China engaging in cookware industry, with more than dozens of thousands of employees. And its annual sales volume reaches hundreds of million pieces, exportation proportion accounts for more than 90% of the total cookware market sales, the total export amount is more than 3 billion US dollar.
The cookware market began to develop in the early 20th century, and it became a sunrise industry for exportation in a few decades. Nowadays, the capacity of the cookware market continues to expand, and the total sales of cookwares are constantly increasing. As a necessity for household using, the cookware market has a huge overseas market space, and its sales volume are improving at a visible rate. No matter in terms of the product variety, design or production craft, it has made great progress.
At present, the cookware industry has basically formed a pattern of production and processing bases in Guangdong, Zhejiang, Shanghai and Wuhan, and Yiwu, the International Trade City as a sales platform. The market competition has risen from regional, category and partial to a three-dimensional battle between brands.
According to the report of the cookware industry association , the development prospects of cookware industry is very promising, but for ordinary operators, how to reduce operating costs, and how to enhance the added value of products, is still a problem to solve.
According to the incomplete statistics of the association, there are about hundreds of active operators in Yiwu market. The relatively small size of a single operating entity virtually amplified the pressure of operating costs. Taking the rent of the four floor of the District 2 of Yiwu International Trade City as an example, the annual rent of the better-positioned shops has risen to more than 300,000 yuan, coupled with rising human costs, and the pressure of operation is increasing. In addition, due to the growing number of employees in the industry, there is inevitably a price war between them, in order to win business. Sometimes they would rather take the order even if they would afford the loss.
As for the emerged problems, enterprises and operators should transform the focus into e-commerce in the future, so that some operators will try to get away from the traditional rental mode and reduce operating costs from the “throttling” aspect. Moreover, through the development of e-commerce, operators have the opportunity to expand more market share, in order to achieve the purpose of “open source”.
Shisenglan, the president of the Chinese Hardware Association, pointed out that the product quality should be able to withstand the test of different usage by customers, it is also the foundation of gainning the trust of the customers. The enterprise and operators should reinforce the understanding of product quality and brand concept, moreover, improving the product added value is the method to enhance the competitiveness of products in the domestic and foreign markets in terms of style design and fancy development.
At last, enterprise and operators should know about how to prevent possible economic disputes and trade fraud in the course of trade, so as to enhance their awareness of avoiding trade risks.
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