Judging from the current economic situation at home and abroad, the fastener industry will still face greater pressure in the second half of the year. So, how should fastener companies "withstand" the pressure and "steady growth"? The author interviewed three more influential companies in the industry to hear their countermeasures. I believe that some of the ideas and methods among them can bring certain help to each company.


Jinyi Industry: insist on changing from manufacturer to supplier


"Jinyi in the first half of this year is not very good," Tu Zhiqing, deputy general manager of Jinyi Company, revealed to the author, "the accumulated operating income in the first half of this year was 1.134 billion yuan, a year-on-year decrease of 26%, and a loss of more than 70 million yuan." In 2012, the sluggish economic situation at home and abroad, even the largest manufacturing company in the industry, Jinyi was also affected to a certain extent.


When talking about how Jinyi copes with the current pressure and how to grow steadily, Tu Zhiqing talked about two points: first, to develop new products; second, to improve the sales model. In fact, these two points are the development goals of Jinyi for a period of time in the future - to gradually promote the transformation of the enterprise from a manufacturer to a supplier.


"Developing new products is what we must do. Traditional products are mainly low-end ordinary fasteners, which do not make money. The era of low-end fasteners has come to an end. So it is definitely not possible to rely on low cost. Price competition is also not enough, it can only rely on product development to develop some products that ordinary tight companies can't do." Tu Zhiqing said.


Jinyi Company took the opportunity of stock issuance and listing in 2007 and the implementation of fund-raising projects, only to seize the opportunity of my country's high-speed rail construction, and focus on developing various types of high-speed rail buckle accessories.


This year, Jinyi proposed to "continue to strengthen the manufacturing industry". In addition to the relatively mature high-speed rail market, Jinyi has also continued to develop in the direction of subway, urban rail, heavy-haul railway and aerospace. It is understood that this year Jinyi has won bids for Shanghai Metro Line 13 and China's first heavy-haul railway project. Tu Zhiqing said: "These are our strengths, and other companies do not have them. And this market is very large, and we have to work hard." The advance to the field of high-end fasteners has indeed brightened Jinyi Company a lot.


The second aspect is to improve the sales model. "We need to pay close attention to the construction projects of the hardware logistics system. Once these projects are completed, we can integrate fastener products, not only our own products. In the future, we can use Jinyi's brand and Jinyi's sales. Channels to expand the market." Tu Zhiqing told the author.


The construction of the hardware logistics system can directly provide customers with a basket of services, and the sales revenue of Jinyi Company will continue to increase. Tu Zhiqing said that if these two aspects are done well, Jinyi will be able to keep it and take it to a new level.


Of course, there are certain difficulties in the implementation of these two aspects, especially the latter. Tu Zhiqing said: the development of new products is not a big problem, because we are relatively mature, and we cooperate with colleges and universities to solve some technical problems, mainly in terms of logistics system construction, which is really suitable for high-end logistics talents in the fastener industry. Not easy to find.


In addition, Tu Zhiqing said that no matter whether it is a large or small enterprise, facing the current situation, the enterprise can only withstand the pressure: do a good job in internal management, open source and reduce expenditure at the same time.


Zhejiang Dongming Stainless Steel: Seek Progress in Stability with Confidence


Zhejiang Dongming Stainless Steel Products Co., Ltd. is also a Taiwanese-owned enterprise. After more than ten years of development, it has become a leader in the mainland fastener industry. The author interviewed Cai Zhengxiong, deputy general manager of the company.


Cai Zhengxiong said: "The situation was really severe this year and last year. Dongming should say that it can barely maintain the original level. The main task at present is to stabilize growth." He introduced several specific measures of Dongming:


1. To maintain the stability of human resources, it is necessary to ensure that there is no flow of personnel, because it takes time to train a technical person; at the same time, uphold the consistent style of Dongming - be conscientious and conscientious, and do what you need to do with peace of mind.


2. In terms of raw material procurement, it is necessary to judge the market trend. Buy less when going downhill to reduce the cost of capital.


3. Strengthen service, mainly in logistics. Faster delivery and better service.


4. Communicate more with suppliers, distributors, and customers in the business chain of the enterprise. Everyone must reach a consensus and overcome difficulties together.


In addition, Cai Zhengxiong also mentioned the internal management of enterprises. He said: "The business operation must have the concept of sustainable development. Now it's time to calm down and take care of it. Management, such as personnel training and many other aspects, can be sorted out and planned. Now Dongming is carrying out refined management, The circulation industry has to do better.”


During the interview, Cai Zhengxiong constantly emphasized that enterprises should have confidence. He said: "Business management is like swimming in the sea, one wave after another, it cannot be calm. Therefore, we must strengthen our confidence and seek progress while maintaining stability, and we must look at every impact with optimism and firmness. Continue to swim leisurely or you will be washed ashore and eliminated."


Cai Zhengxiong said that while he hoped that the economy would improve, the company was also carrying out technological transformation and business transformation. Transformation is to pave the way for better future development. Dongming's future direction is also very clear, that is, to make high-value-added refined products.


Zhejiang New Oriental: Seize the opportunity to cultivate internal skills


As an "old-fashioned powerhouse" in Haiyan fastener enterprises, New Oriental has always had a stable market share and corporate benefits. Until the financial tsunami that swept the world in 2008, New Oriental suddenly felt the various disadvantages of being in the lower end of the industrial chain.


"It must be transferred, and it must be transferred immediately", became the strongest voice in the heart of Chen Zhengliang, chairman of New Oriental. He said that the crisis is a back-pressure mechanism, prompting companies to make choices. Today's New Oriental is both galloping on "land" and conquering "space", and the road of transformation is getting wider and wider.


However, in the face of the severe economic situation this year, New Oriental is not without waves. It is reported that the order of the company's old customers has dropped by about 30% year-on-year. Fortunately, the development of new accounts has made up for this loss. In addition, New Oriental mainly exports to the United States, Russia, Australia and so on. Markets like the US have now picked up significantly. So overall, New Oriental has not been under too much pressure.


Regarding the measures to stabilize growth, Chen Zhengliang also mentioned the internal management of enterprises. He said: "I think now is a good time. Enterprises can calm down and practice their internal skills and focus on enterprise management. Because if it is like an order, there is a big gap between the past and the present, and you will lose money if you do it now or not."




"At present, the industry is indeed facing a lot of pressure," Chen Zhengliang sighed. "China's fastener advantages are gradually weakening, labor costs are rising, and the country's requirements for environmental protection are getting higher and higher. Now the advantages of Vietnam, Malaysia, and Thailand are It's slowly showing up."


Chen Zhengliang said that stable growth is the top priority of enterprises, and at the same time, stable growth is closely related to structural adjustment and transformation. He said: "When an enterprise adjusts its structure, on the one hand, its plans, trends, and positioning must change with the changing situation. It doesn't mean that a five- or 10-year plan is just fine, because the situation is always changing. Under the current circumstances, enterprises need to make good plans; on the other hand, the product structure must move towards the mid-to-high end. Transformation and upgrading is a long process, and capital investment, management and other aspects must be paid attention to. After these two points are achieved, enterprises will face It's better to deal with challenges."


So why don't low-end businesses move to the high-end? Chen Zhengliang pointed out that transformation and upgrading is not an easy task. The investment in hardware, software and equipment is relatively large. However, the strength of small enterprises is limited, so there is no such large investment. On the other hand, small enterprises do not have a long-term vision. Large enterprises need to consider long-term development and are supported by the government and banks, so it is relatively easy to transform and upgrade.