Development Trends in the Faucet Industry for Bathroom Use [SMM Copper Industry Conference]

On April 22, at the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo - Copper Pipe & Tube Processing Industry Development Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., co-sponsored by Jiangxi Copper Corporation and Yingtan Land Port Holding Co., Ltd., specially co-organized by Shandong Humon Smelting Co., Ltd., and co-organized by Xinhuang Group and Zhongtiaoshan Nonferrous Metals Group Co., Ltd., Lin Jin, Senior Advisor of the Bathroom Branch of the China Building Sanitary Ceramics Association, discussed the development trends of the faucet industry in the bathroom sector. As an important part of the manufacturing industry, the Chinese hardware industry has shown new development trends in both domestic and foreign trade in recent years. Domestic Trade Development Trends: 1. Consumption upgrade drives product structure optimization. 1. Growth in high-end demand: With the upgrading of domestic manufacturing and the improvement of consumption levels, the market demand for high-precision tools, smart hardware (such as smart locks, power tools), and environmentally friendly materials has significantly increased. 2. Customization and scenario-based solutions: The home hardware sector (such as cabinet hardware, bathroom accessories) is transforming towards personalized and scenario-based solutions, with leading enterprises seizing the mid-to-high-end market through design innovation. 2. Policy and infrastructure boost demand. 1. New infrastructure and urbanization: Urban renewal, old community renovation, and 5G base station construction drive the demand for construction hardware and engineering tools; the NEV and PV industries drive the growth of industrial hardware accessories. 2. "Dual circulation" policy support: National policies encourage the expansion of domestic demand, and hardware enterprises accelerate their layout in lower-tier markets (third- and fourth-tier cities and rural areas), penetrating broader regions through e-commerce channels. 3. Related national subsidy policies: Green manufacturing and energy-saving subsidies (green product certification subsidies, energy-saving technology transformation subsidies), technological innovation and industrial upgrading subsidies (high-tech enterprise certification, specialized and sophisticated "little giant" enterprise support, intelligent manufacturing special subsidies). 3. Deepening digital transformation. 1. Rise of online channels: Platforms such as Tmall, JD.com, and Pinduoduo have become important sales channels, with live-streaming e-commerce and community marketing helping brands reach consumers. 2. Intelligent supply chain: Leading enterprises optimize inventory management through IoT and big data, achieving flexible production and quickly responding to market demand. Foreign Trade Development Trends: 1. Changes in the global market landscape. 1. Tariff impact: Tariffs have evolved from traditional trade protection tools to core means of great power competition, industrial upgrading, and rule competition. Their impact is not limited to the flow of goods but is deeply embedded in technology, climate, geopolitics, and other dimensions. The future of the global market may depend on how countries find a dynamic balance between openness and protection, efficiency and security, competition, and cooperation. 2. Release of emerging market potential: The robust infrastructure demand in Southeast Asia, the Middle East, and Africa has become a new growth point for Chinese hardware exports; the trade proportion along the "Belt and Road" countries continues to rise. 3. Increased barriers in European and US markets: Environmental standards (such as the EU REACH regulation) and anti-dumping investigations force enterprises to enhance compliance capabilities. 2. Upgrading export models. 1. Accelerated penetration of cross-border e-commerce: Through TO C online platforms such as Alibaba International, Amazon, TikTok, Temu, and Shein, and online-offline integrated platforms such as Wayfair, Home Depot, and Lowe's, Chinese enterprises connect with overseas TO B & TO C customers, enhancing overseas market penetration capabilities. 2. Brand globalization and localization: Leading enterprises establish warehousing centers and after-sales service networks overseas, improving market share by acquiring local brands or establishing joint ventures. 3. Cost and supply chain challenges. 1. Pressure of industrial chain relocation: Some low-value-added capacities are shifting to Vietnam and India, forcing domestic enterprises to transform towards high-value-added segments. 2. Exchange rate and raw material fluctuations: The fluctuation of the RMB exchange rate and the instability of raw material prices such as steel test enterprises' cost control capabilities. Leading Enterprises' Competitive Strategies: 1. Technological innovation and green transformation. 1. Increase R&D investment, develop intelligent and energy-saving products (such as brushless motor tools, degradable coating hardware). 2. Practice ESG concepts through PV roofs and scrap recycling to cope with international carbon tariff pressures (such as the EU CBAM). 2. Industrial chain integration and collaboration. 1. Vertically integrate upstream raw material (such as steel, alloy) supply, horizontally expand to hardware tool supporting services. 2. Cooperate with leading enterprises in the home and electronics industries to provide one-stop solutions. 3. Global layout. 1. Build factories in Southeast Asia and Mexico to avoid trade barriers and reduce logistics costs (such as TikTok e-commerce driving localized production in Southeast Asia). 2. Participate in international standard setting, enhance technical discourse power (such as leading the formulation of ISO standards for the hardware tool industry). Future Challenges and Opportunities: 1. Challenges. 1. Intensified international trade frictions, geopolitical risks (such as Sino-US competition) affect supply chain stability. 2. Rising domestic labor costs, long-term investment required for automation substitution. 3. Severe homogenization competition among small and medium-sized enterprises, price wars compress profit margins. 2. Opportunities. 1. RCEP dividends: Regional free trade agreements reduce tariffs and promote Asia-Pacific market integration. 2. Technology revolution window: Industrial internet, AI quality inspection, and other technology applications improve production efficiency. 3. Green economy opportunities: Global carbon neutrality goals drive the explosion of demand for new energy and energy-saving building-related hardware. Market Research Product Trends: Market Trends: Intensified market competition, the industry is very "competitive"; customer demand continues to upgrade; new consumption scenarios continue to emerge; cost-performance ratio - quality-price ratio - aesthetic-price ratio; technological innovation, continuous progress in intelligence; simultaneous efforts online and offline... Scenario-based: When the bathroom is no longer just a functional space but becomes a container for immersive experiences, the recently concluded Frankfurt Bathroom Exhibition showcased a trend: the bathroom is becoming a sanctuary of personality and senses. Natural materials, soft colors, breathing design language, combined with technological innovation, make the space more warm and conversational, and functional innovation brings more usage scenarios. It discussed scenario-based (bathing scenarios, makeup scenarios, washing scenarios); aesthetic-price ratio (aestheticism); technological innovation, intelligence (AI), etc. Three Elements of Product Design: Customer demand, technological innovation, and business sustainability. Product Trends: In addition, it also introduced the design trends of hardware faucet products. Summary and Suggestions: Internally - Deeply cultivate segmented markets, strengthen brand and technical barriers; accelerate digital and green transformation, enhance supply chain resilience. Externally - Layout diversified markets, break through the mid-to-high-end market through "brand + service"; use overseas industrial parks to achieve localized operations. Long-term strategy - Upgrade from "hardware manufacturing" to "hardware intelligent manufacturing," build an ecosystem of "product + service + data." In the future, Chinese leading hardware enterprises need to balance the consumption upgrade in domestic trade and the globalization competition in foreign trade, and continuously consolidate their industry position in a complex environment through innovation-driven and strategic adjustments. Click to view the special report on the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo.