Guangdong’s Hardware Industry Transformation
The Transformative Business Strategy of Hardware in Guangdong, China
From the stadiums of the Qatar World Cup and the world’s tallest building, the Burj Khalifa, to the Petronas Towers in Malaysia, the Sheraton Hotel in Saudi Arabia, Beijing West Railway Station, and the Shanghai Library—Chinese hardware is everywhere.
Twice a year, overseas buyers at the Canton Fair no longer just check out the booths; they now go deep into China’s hardware factories to uncover more business opportunities. This shift marks a strong sign of China’s hardware industry rising globally and fighting for international market share.
Guangdong’s Strategic Transformation: Leading the Way
Guangdong is advancing its “Hundred-Thousand-Ten Thousand Project,” where local towns drive county development and link rural areas to future growth. As one of Guangdong’s traditional main industries, hardware plays a key role in this transformation. To remain competitive, the province is upgrading its hardware industry by focusing on five main areas: branding, transformation, quality improvement, reform, and supporting services. This will help align hardware with emerging industries like new energy, driving local economic growth.
Focusing on Both Ends of the Industry’s Value Curve
Since the early days of China’s reform and opening-up, Guangdong has been involved in the hardware industry. What started as small, home-based workshops has now grown into a cluster of over 7,000 hardware companies, thanks to a pioneering spirit. However, as technology advances and new industries emerge, the hardware sector has faced fragmentation and competition.
To stand out in such a competitive market, Guangdong’s hardware industry must focus on two key areas: research and design, and brand management. By focusing on these aspects, companies can elevate their value and competitiveness.
The Canton Fair, one of the largest trade events in China, continues to attract global buyers. Guangdong has capitalized on this platform, organizing 18 local hardware companies to showcase their products under the regional brand “Good Hardware, Made in China.” This effort has boosted the province’s international influence, expanding into markets like Europe, Southeast Asia, and the Middle East.
Innovation Drives Growth: Shifting Toward Smart Hardware
Some leading companies in Guangdong are already making the shift to high-tech, electronic, and smart home hardware. They are continuously innovating in product design and manufacturing processes. Products like touchless automatic doors, electric door openers, and magnetic levitation automatic doors have gained popularity with international customers.
The Dual-Engine Strategy: Hardware + New Energy
According to the China Association of Automobile Manufacturers, the production and sales of new energy vehicles (NEVs) in China reached 8.42 million and 8.30 million, respectively, in the past year, with year-on-year growth of 34.5% and 36.7%.
The rapid growth of the NEV industry has boosted demand for automotive parts. Guangdong has seized this opportunity, connecting local hardware companies with major automotive firms like Xpeng Motors and PUTAILAI, to help them transition from traditional hardware to high-value industries such as automotive and electrical hardware.
Building a Future-Oriented Hardware Industry
Guangdong’s hardware industry is not just surviving; it’s thriving and diversifying. This year, over 2,000 new hardware businesses have been established in the region. Additionally, the province is building infrastructure such as the Hardware Innovation Town and Xinji Innovation Technology Park, along with a hardware exhibition center, to create a robust industry cluster worth hundreds of billions.
In addition to supporting research and development, Guangdong is also addressing the challenges faced by hardware companies. It is providing policies to encourage business expansion, including land use, education for migrant children, and energy subsidies. The goal is to stimulate market vitality and foster the development of quality businesses through targeted policies.