People usually think that the continuous price increase of raw materials will bring difficulties to the development of an industry and affect the vitality and speed of industry development. However, the actual situation is just the opposite. This is a misunderstanding of people's understanding of economic laws. The sharp rise in raw materials in the first half of this year not only did not hinder the development of the hardware industry, but more powerfully promoted the rapid improvement of the industry's brand, and the company entered a virtuous circle with high quality and better prices, and the survival of the fittest.

According to relevant data, in the first half of this year, the prices of many hardware products have been rising, and the increase has been particularly large. A large core board of the same specification of a certain brand has risen from around RMB 90 per piece to around RMB 110, an increase of up to 20%. Due to the imbalance between the supply and demand of raw materials, the price of hardware products continues to rise. According to the analysis of relevant experts, the increase in raw material prices is a concrete reflection of economic laws in the hardware industry. The global economic recovery and the continued strong growth of the Chinese economy are the fundamental reasons for the rise in metal raw materials prices.

The rising price of raw materials is forcing the price of hardware products to rise all the way. Does this make the entire hardware industry suffer a heavy blow? In fact, not only has it not been hit hard, but it has gradually emerged a positive situation of survival of the fittest and endless new products. Some insiders in the Yiwu market believe that raw material prices fluctuate reasonably within a certain range, re-integration and reshuffle of industry production capacity and industries, product price adjustments, and help companies out of years of industry low entry barriers and low product price competition and waste The vicious circle of resources is of great benefit.

In the past, low-price competition caused enterprises to use their efforts on low-end products. The assimilation of products was serious, and the superiority was invincible, and the inferior was not the fittest, which hindered the overall improvement of the industry. In the Yiwu market, due to the long-term low-cost competition in the hardware industry, most companies rely on lowering product prices to compete for the market and minimize profits. There are serious consequences such as low product prices, low value, and low profits. Therefore, companies lack sustainable development. The support of the industry cannot be improved, and the industry cannot be improved. Two or three years ago, the price of metal raw materials began to rise. In the first half of 2006, the price rose faster. Some prices rose several times within a month. This surprised companies and relied on low-cost and low-price competition for a long time. Profitable hardware companies are even more difficult to parry.

Under the pressure of rising raw material prices, companies have to find ways to change their strategies and adapt to the market situation for their own survival and development. Therefore, the hardware industry has gained an opportunity for improvement. It is understood that after the substantial increase in product costs, Chinese hardware companies including Yiwu market manufacturers have paid more and more attention to innovation, increasing the technological content of their products, and according to the principle of high-quality and high-price, correspondingly increased sales prices, and product quality and grade have been rapidly improved. The competitiveness of the industry is much greater than in the past. It seems that under the new market situation, companies in the hardware industry are increasing the added value and profit of their products by improving management and developing new products, expanding domestic and foreign markets, and truly forming a good situation of high quality, better price, and survival of the fittest. People are pleasantly surprised.