Discussion on the Current Situation and Future Trend of Hinge Manufacturers_Company News 2

In light of recent events such as furniture exhibitions, hardware exhibitions, and the Canton Fair, industry professionals have been gathering to discuss the trends and developments in cabinet hinges. As an editor and industry peer, I have engaged in conversations with customers from various regions around the world to gain insights into the current situation and future trends of hinge manufacturers. Today, I will share my personal understanding on three key aspects.

Firstly, there has been a significant oversupply of hydraulic hinges due to repeated investments. Ordinary spring hinges, such as two-stage force hinges and one-stage force hinges, have been eliminated by manufacturers as they have become outdated. The production of the hydraulic damper, which supports hydraulic hinges, has become highly mature with numerous manufacturers producing millions of dampers. Consequently, the damper has shifted from being a high-end product to a widely available one, with prices dropping significantly. The low profit margin has led to a rapid expansion of damping hydraulic hinge manufacturers, which has resulted in a surplus supply.

Secondly, we are witnessing the emergence of new players in the hinge industry. Initially, manufacturers were concentrated in the Pearl River Delta, then in Gaoyao, and later in Jieyang. More recently, individuals in Chengdu, Jiangxi, and other regions have been exploring the opportunity to purchase hinge parts from Jieyang at low costs and directly assemble or produce hinges. While this trend is still in its early stages, the growth of China's furniture industry in Chengdu and Jiangxi could potentially fuel these endeavors. In the past, I would have advised against opening hinge factories in other provinces, but given the support from the furniture sector and the expertise of Chinese hinge workers after years of development, it is not implausible for them to return to their hometowns to establish successful ventures.

Furthermore, some countries that have imposed anti-dumping measures against China, such as Turkey, have sought Chinese companies to process hinge molds and import Chinese machinery for their own hinge production. This trend is also observed in Vietnam, India, and other nations, which may have an impact on the global hinge market.

Thirdly, due to the poor economic climate, reduced market capacity, and rising labor costs, hinge manufacturers are struggling with intense price competition. Many hinge enterprises experienced losses last year, leading them to sell hinges at a loss to remain operational. In order to survive, companies resort to cost-cutting measures, compromising on product quality and cutting corners. This situation has created a vicious cycle, with low-quality hinges flooding the market. Consumers are realizing that the joy of a low price is short-lived, while the consequences of poor quality are long-lasting.

In light of the market chaos, large hinge brands have an opportunity to expand their market share. The low prices of hydraulic hinges have made it easier for furniture manufacturers to upgrade their products, creating growth potential. However, consumers are increasingly aware of the need for brand protection and are willing to invest in products from reputable brands. This shift in consumer mindset is likely to increase the market share of established brands.

Lastly, international hinge brands such as blumAosite, Hettich, Hafele, and FGV are making significant efforts to penetrate the Chinese market. Historically, these brands did not prioritize marketing in China, but with the European and American markets weakening and the Chinese market thriving, they have redirected their focus. These international brands are now investing in Chinese marketing outlets, exhibitions, catalogs, and websites. Many large furniture manufacturers rely on these well-known brands for their high-end product lines. This situation poses challenges for local Chinese hinge companies aiming to establish themselves in the high-end market. Moreover, it influences the purchasing decisions of large furniture companies, leaving Chinese enterprises with a long journey ahead in terms of product innovation and brand marketing.

In conclusion, the hinge industry is witnessing a multitude of developments. From the oversupply of hydraulic hinges to the emergence of new players and the challenges faced by manufacturers, it is evident that the market is evolving. Additionally, the entry of international brands into the Chinese market and the changing consumer preferences for brands create both opportunities and challenges for the industry.