Safe Market Analysis and Investment Outlook

At present, the total sales revenue of the safe industry in China has reached 5 billion yuan, increasing at a rate of 20-25%. After 20 years of rapid development in China, the security industry has become an increasingly important part of China’s economic development.

According to the "2012-2016 Safe Deposit Market Survey, Analysis and Investment Prospects Advisory Report," the current scale of China's security product market is approximately 20 billion yuan, and it is developing at a rapid rate of 20-25%. The trend is forecast to reach 2020. The total market size of the 14 major categories of 245 sub-products in the Chinese security industry will reach 300 billion yuan or more, and the safe-box market will account for about 25% of the total. The current market for home safes in China is huge, with a population of 1.3 billion, of which the urban population is 523.7 billion about 146 million households, and the rest is about 255 million rural households, only 30% of urban households. Rural households have 5% of purchases, so the entire market has a market capacity of more than 56 million units, and the market scale value exceeds 50 billion yuan (as exemplified by the United States, Canada, and the United States as an international household safe). The future development trend of the safe industry is good, but the competition is fierce. Safe manufacturers have seized the opportunity to expand the safe sales area under the promising market outlook, and have grown rapidly to occupy a relatively large market share. At present, the sales of home safes on the market are extremely fragmented. There are only 2-3 brands in each market or store, and many of them are concurrent products for hardware stores or small household appliances, and there are no full-time manufacturers. As a special household product with anti-theft function, the state actually has strict production requirements for safes. At present, safe CCC certification has been enforced, and former safes for tin and tin tanks have been eliminated.

China's Safe Deposit Industry Overview Investment Analysis I. Overview of the production and operation of safes Ningbo's safe production accounts for one-third of the country's total, but over the years the company's “kill each other” to excavate the walls of the foot to make it blocked. In 2006, the nation’s first safe industry association was established in Daxie, and Ningbo’s many safe companies responded to the competition and expanded their scale to jointly enter the domestic and foreign markets. Many safe manufacturing companies in Ningbo have established cooperative relationships with international chain companies such as Wal-Mart, OBI, B&Q, etc. The products are exported to Europe, America, Southeast Asia, the Middle East and other countries and regions.

II. Overview of the overall development of the safe industry At present, the sales of home safes on the market are extremely fragmented. There are only 2-3 brands for each market or store, and many of them are concurrent products for hardware stores or small household appliances. There are no manufacturers. Full-time shopping guide. The salesperson will simply demonstrate the method of operation and have little knowledge of the product's performance and materials. Consumers can only learn very limited and simple information from product introductions.

As a special household product with anti-theft function, the state actually has strict production requirements for safes. At present, safe CCC certification has been enforced, and former safes for tin and tin tanks have been eliminated. Therefore, if you encounter a safe product with a sales price of only one or two hundred yuan in the market, you must be careful, because that may be the phase-out product of iron plus cement material, even if there is CCC certification, it is very likely that fake. These elimination products are also quite "heavy" in terms of weight, but there is no anti-theft performance at all.

Of course, due to the relatively high barriers to entry into the home and home appliance market, and the products being sold are mostly branded products, their quality is relatively reliable. Both of them are able to produce CCC certification, but the price is more than 800 yuan; and some other Sales channels such as internet sales have low restrictions due to the barriers to entry. Therefore, a large number of inferior out-of-the-box products are mixed. They often use the “low price” and “special price” guise to open up their sales. There are also many products that use “foreign trade” as Due to the fact that it has not obtained CCC certification, but due to its affordable price (mostly between 100-300 yuan), the sales situation of such safes on the Internet is rather hot.

China's safe industry is undergoing a stressful market research. 1. Pressure of the renminbi appreciation on the safe industry At present, safes are mainly exported to the United States, and the appreciation of the renminbi will have a very negative impact on the export of safe products. A large number of export contracts are fixed for one year. The determination of uniform prices increases the risk. In particular, the increase in manufacturing costs, export-oriented companies will have to take measures to eliminate low-value customers to digest costs.

Second, the export tax rebate cut pressure on the safe industry China's safe deposit cabinet manufacturing companies mainly for foreign famous safe brand cabinet OEM, Europe and the United States and other developed countries have great demand for high-end safes, with the rapid economic development of developing countries, the world The demand for safeboxes (mainly the civilian safe market) and market capacity will continue to expand. Since July 1, 2007, the export tax rebate rate for steel safes has dropped from 13% to 5%. Combined with the appreciation of the renminbi, the profitability of exporters of safes has been greatly reduced.

Third, the EU anti-dumping pressure on the safe industry Foreign trade companies affected by the exchange rate, a serious reduction in profits, as well as the EU's "anti-dumping" allegations, the situation worsened, the safe export business to Europe was significantly suppressed, while large safe companies rely on exports There are numerous cases of increasing their own sales structure.

Fourth, the raw material cost which raw material price increases to the safe industry pressure will promote the safe enterprise to further increase the price. In recent years, the employment problem of enterprises has not been well solved. Many technical posts such as welders and painters cannot find suitable technical talents. Shortage of labor causes increase in manufacturing costs, extension of delivery, and transfer of orders. The chain reaction of the series is like a butterfly effect. Most safe companies have the same feeling. Although the orders increase, the increase in profit is very small. At the same time, due to the increase in costs, some foreign customers have transferred orders to lower-cost countries.

V. The increase in labor costs Pressure on the safe industry There are many factors that affect the development of the industry. The labor cost, raw material price increase, exchange rate appreciation, and increase indicate that the industry is at a critical stage of development. At present, the main export destination for safes is the United States, and the appreciation of the renminbi will have a significant negative impact on the export of safe products. A large number of export contracts are fixed for one year. The determination of uniform prices increases the risk. In particular, the increase in manufacturing costs, export-oriented companies will have to take measures to eliminate low-value customers to digest costs.

The safe deposit box market has been growing steadily in recent years. The export market has gradually expanded, the home market has risen, hotels and other industries have gradually accepted safe products, and China Research Institute Research Institute believes that the domestic safe market will maintain stable and sustained growth in the next few years; The market for home safes in large and medium-sized cities has gradually increased and formed a momentum. Once a product enters China, it will be an astonishing growth rate. It means that the speed of the safe box market will increase rapidly and the outlook will be more optimistic. . China's safe import and export surplus has more than tripled, and has remained stable in recent years. The growth rate of exports is lower than that of imports, and it has remained relatively balanced in the last three years. The growth rate of the import growth rate is greater than that of exports, and the level of emphasis on the Chinese market by foreign companies has begun to increase. The industry integration began to show, some leading enterprises will become bigger and stronger, and the degree of industrial concentration will accelerate development. With the rapid development of enterprises and the involvement of mergers, mergers, listings, or other capital, the market share of first- and second-tier companies in the country will increase to the level of 60% to 80% and gradually enter a more reasonable range; technological innovation will become The main direction of corporate development, safe companies in the high-end products will make a difference. Exports of safe products will continue to grow steadily. The scale and variety of export products will continue to increase. China's safe manufacturing companies mainly deal with famous brands of foreign safe deposit boxes. Demand for high-end safes in developed countries such as Europe and the United States is very large. With the rapid economic development in developing countries, the world's safe-cassette market needs (mainly civilian safes). Market) and market capacity will continue to expand. While doing OEM business, the company will gradually open up or establish its own international marketing channels and launch its own branded products.