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China's hardware industry export ratio
China's hardware industry export ratio has long been a subject of interest, with exports accounting for nearly half of the global market. However, Jiangshan’s hardware tool industry is still grappling with confusion about its future direction. The question remains: Can it make a "leap" from being an OEM (Original Equipment Manufacturer) to building a strong brand identity?
Imagine you are a business owner. Your products are of top quality, made with premium materials and expert craftsmanship—but you don’t have your own brand. You either continue relying on OEM orders to keep your company running smoothly, or you take a risk by investing in your own brand and try to compete against well-established foreign names. What choice would you make in such a situation?
This dilemma—OEM or autonomy—has become a defining challenge for China’s tool hardware industry. For decades, the sector has relied heavily on OEM production, but now, as global markets evolve and competition intensifies, the need to build strong national brands has never been more urgent.
Shi Lanlan, Executive Deputy Chairman of the China Hardware Association, has spent over 30 years in this industry. She recalls how the sector has grown through periods of economic fluctuation and uneven development. Despite becoming the world’s largest manufacturing base, China still lacks internationally recognized brands. Many high-quality tools sold abroad under foreign labels are actually made in China. While quality is accepted, brand recognition remains low.
Shi firmly believes that developing independent brands is essential. “At this stage, we must focus on building our own brands,†she says. However, the journey is not easy. Even in the domestic market, establishing brand awareness is a tough task.
Bao Jiangang, CEO of Ningbo Jiejie Tools Co., Ltd., once tried to break into the domestic market but faced challenges due to weak brand presence and untrustworthy channels. He eventually shifted his focus to international expansion. But after years of experience, he has reconsidered the domestic market, recognizing its huge potential.
Companies like Wendeng Power Tools Group are leading the way. As the world’s largest manufacturer of adjustable wrenches, Wendeng has successfully transitioned to the domestic market, launching its own brand “MAXPOWER.†Sales have grown significantly, showing promising signs for the future of Chinese brands.
Another example is Shanghai Ubay Machinery Co., Ltd., founded by Yue Erying. She launched her brand “Naught†into the German high-end market early on and later expanded domestically. She refused to lower her brand’s standards to meet U.S. price demands, staying true to her vision of a premium product.
Despite these successes, many industrial users still lack trust in Chinese brands. Shi Lanlan emphasizes the need for stronger brand promotion, especially in professional sectors like aerospace, shipbuilding, and automotive maintenance. Only by building trust can Chinese brands truly move onto the global stage.
The path to branding is long, but the efforts are already paying off. With growing awareness and investment, China’s hardware industry is slowly shifting from being a “world factory†to a leader in innovation and brand strength.