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Market Type Analysis on the China Fastener Industry Chain

 
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2013-11-27

Here we will briefly introduce the 4 mainstream market types in China’s fastener industry. We hope this will guide fastener companies in understanding their market positions and preparing for strategic deployment.

 

1. “Just enough to live” Type

This is the most common type of fastener stores you will see in every corner of China. Stores of this type are usually small in size and they are the main force in the downstream retail system of the fastener industry. They usually lack marketing ability and do sales passively rather than be the goers. Because they cannot lift the sales price, they usually do whatever they can to find and purchase low-priced products, regardless of the possible lower quality. Therefore, “price” becomes their definitive choice.

 

2. Distributor Type

Top-level distributors are characteristic of comprehensive specifications, large stockpile, and low price. They function as selling, distributing, transshipping products to small and medium stores in a specific region. In most cases they have 2,000 square meter warehouses and delivery vehicles, with annual sales of over RMB50 million.

 

3. Roamer Type

Roamer type has neither physical stores nor an expert look, and it is a rare type. Operators of this type usually originate from nation-run corporations. They are well-informed, have powerful acquaintances, offer comprehensive service, and pursue high price and high profit. Traditional supporting plant plants and construction projects have a certain part to do with the roamers.

 

4. Professional Type

Also dubbed as “Fastener System Type”, it is generally comprised of foreign-owned companies in China such as Bossard and Wurth. It neither distributes nor does wholesales, but operates as a professional agent providing technical support and direct service to clients. This cannot be compared to the simple direct sales because it sells product, service, brand, and reassurance altogether. Its end-clients generally consist of foreign large corporations and those conducting national public constructions.

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