Hardware companies must seize policy opportunities to get out of the consumer market

China's GDP grew by 7.1% and it was driven by consumption by 3.8 percentage points. For a long time, the growth rate of consumption in domestic demand is far lower than that of investment. However, compared with the previous “seeing only investment but no consumption”, 3.8 percentage points is not easy to come by. The continuous growth of consumption shows that there have been some positive sounds in China's consumer goods market, but does it mean that the domestic consumer goods market, including hardware and tools, has gradually come out of the doldrums?

Since the second half of 2008, the domestic hardware market has been struggling to survive under the influence of many unfavorable factors such as the severe impact of the international financial crisis, economic growth slowdown, decline in corporate profits, and lack of consumer confidence. When the market warms up, it has always been the concern of business owners.

Experts suggest that there are some good aspects of the market recovery, but it will take time before the bottom is reached.

The reason is that although consumption has maintained steady growth, due to the current employment pressures in China, people’s income growth has also been affected by the financial crisis. In addition, although China’s efforts to increase its efforts have been building, it is still difficult to solve residents’ Worrying'. All these problems have an impact on the growth of consumption.

In addition, during the economic crisis, due to the excess production capacity of low-income residents resulting in excess production, the operating rate of enterprises is low. The difficulties of the enterprises have also exacerbated the increase in the unemployment rate. Workers’ wages have declined and their consumption has become more hopeless. The two are each other cause and effect, and they can't be solved.

In particular, after the shrinking of external demand, GDP growth depends on domestic demand. There are two internal needs, one is investment demand, and the other is consumer demand. Increasing investment demand can maintain GDP growth. In contrast, domestic consumption is more likely to be confined to the support of the country’s industrial policy. It is not so much a consumption increase as it is known as investment.

When China's GDP grows by 7.1% and the economy draws 3.8 percentage points, hardware companies should seize the favorable policy opportunities of expanding consumption and stimulating domestic demand, strive to expand the market, expand supply, boost confidence, and get out of the consumer market.