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How Hardware Enterprises Can Maintain Their Footing Amid Industry Consolidation
Across the entire hardware market, we observe a proliferation of brands—ranging from large to small, established to niche. This multitude of brands signifies both the sector's rapid expansion, with market dividends attracting hardware enterprises, and a warning of brand saturation. The industry's overinflation, lacking strategic planning, is evident. As the hardware sector continues to evolve and refine itself, an inevitable ‘shake-up’ revolution may unfold in the future. In this battle, the key to which brands endure and which fade away lies within the hardware enterprises themselves. So, how should hardware companies position themselves to remain steadfast during this ‘shake-up’?
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Across the entire hardware market, we observe a proliferation of brands—ranging from large to small, established to niche. This multitude of brands signifies both the sector's rapid expansion, with market dividends attracting hardware enterprises, and a warning of brand saturation. The industry's overinflation, lacking strategic planning, is evident. As the hardware sector continues to evolve and refine itself, an inevitable ‘shake-up’ revolution may unfold in the future. In this battle, the key to which brands endure and which fade away lies within the hardware enterprises themselves. So, how should hardware companies position themselves to remain steadfast during this ‘shake-up’?
Analyse the product market and reflect on your hardware offerings
Nowadays, any hardware enterprise typically carries dozens of product lines, with those offering OEM or customisation services boasting even broader ranges. The off-season presents an ideal opportunity to streamline product portfolios. This involves ensuring timely volume increases for core products without overstocking, implementing limited promotions to avoid damaging prices and undermining peak-season strategies; Non-core products should be leveraged to their fullest potential, particularly strategic items. Tailored strategies per outlet can be considered to maximise sales and unlock each distribution point's potential. Key development products require steady advancement, with concentrated resources on promotion to position them as highlights for the peak season. This will bolster market confidence and propel the peak season to new heights.
Analyse and organise the market, preparing in advance
Regarding predictions of an impending shake-up in the hardware sector, enterprises can proactively prepare by conducting a comprehensive market review. Identify key markets, secondary markets, and developing markets, formulating distinct strategies for each. Ensure robust investment in key markets to achieve significant returns, safeguarding normal business operations. Secondary markets represent the primary drivers of market expansion. As these markets are poised for growth, efforts should accelerate to rapidly unlock their potential. Nurturing markets require a slow, steady approach. Avoid forcing growth prematurely. Once key priorities are established, proceed methodically, prepared for a protracted campaign. Market analysis prevents companies from grasping at straws in haste, prioritising short-term sales over long-term sustainability, ultimately collapsing before dawn breaks.
Effective time management enhances efficiency
During the off-season, many hardware manufacturers experience relatively idle production lines. This period presents an opportune moment to undertake custom orders, which not only maintain production capacity but also invigorate routine operations. Such initiatives simultaneously capture market demand and exert pressure on competitors. This approach safeguards core product lines while eroding rival sales.
Off-season: The prime time for foundational work
‘Lay foundations during the off-season; drive sales during the peak season.’ This underscores the critical importance of foundational work during the off-season. Another implication is that the off-season affords teams ample time to build these foundations. When the peak season arrives, even fulfilling deliveries becomes challenging; attempting foundational work then is both untimely and unsustainable. Off-season foundational development must be planned and strategically laid out.
Off-Season: Sales Focus Remains Essential
‘Laying foundations during the off-season’ does not mean neglecting sales. Achieving sales targets remains equally crucial. The notion that insufficient off-peak sales can be compensated for during peak periods is rather naive. Today's competitive landscape differs from the industry's golden age. If you don't sell your goods, others will. The market share is shrinking, yet the number of players vying for it is increasing. Peak-season sales volume is finite. Therefore, a sales mindset must be cultivated during the off-peak period too. However, from a company's cost-effectiveness perspective, off-peak sales may not be cost-efficient, as competition is fierce and the effort required to drive consumption is greater.
The ongoing ‘shake-up’ within the hardware sector signifies both the industry's need for rectification due to unregulated development and its progression towards greater refinement. Consequently, this restructuring represents an unavoidable and necessary process for both the sector and individual enterprises. For hardware enterprises to survive this reshuffle, they must take proactive steps: first, engage in self-reflection by analysing their product market and implementing adjustments; second, study market trends to anticipate shifts and formulate strategic plans in advance; finally, during off-peak periods, focus on strengthening foundational capabilities while maintaining sales momentum. Survival of the fittest remains an immutable law of market competition, and only the most capable hardware enterprises will thrive and endure in the future.
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