CIHS 2024
Tools of the World's Workshop
If there is one cliché that is widely anchored in people's minds about China, it is that of the world's workshop. However, this image did not appear for nothing, as it is true that the Middle Kingdom has risen to the second rank of world powers thanks to this strategy that has been working at full speed in the country for several decades now with the success that we know. This has offered the population an extraordinary increase in the standard of living, which has concerned all social classes since the escape from poverty of some 800 million inhabitants is an unequaled record in the history of humanity.
It is essential to recall this preamble, as it explains the extraordinary development of Chinese industry regardless of the sectors of activity. Thanks to this providential workforce, entire sections of the global economy have been able to take full advantage of it and consequently awakened a giant that has proven its dazzling dynamism and its formidable adaptation to any demand from clients from all countries. All this has generated an economic boom never seen before and allowed the country to change its face, going from an underdeveloped state to a great modern power. However, in this little game, Western clients have burned their wings. Indeed, subcontractors have become powerful industrialists, capable of meeting all demands. Thus they have become the world's leading exporters at breakneck speed, being able to meet any demand in all areas. However, it was madness to imagine that the Middle Kingdom had built this strength and reputation without a strategy, as simple suppliers following customer demands. It is exactly the opposite. Quietly, the authorities have set up a real war machine, ready to meet all challenges. The kick-off was given in 1974, in a small fishing village named Shenzhen by a certain Deng Xiao Ping. We know the rest, and this city is today the symbol of Chinese economic and industrial power. Methodically, all sectors have been conquered, via a very precise planning strategy. In each region, specialized centers have been created in all the targeted areas, according to the principle of clusters that make it possible to rationalize production, distribution and logistics chains. But to make their know-how more visible, manufacturers supported by their unions and professional associations have encouraged the establishment of trade fairs both for their domestic market and for export.
The CIHS, an incomparable showcase
One of the best examples of the application of this strategy is called CIHS Shanghai Exhibition which has now reigned supreme for over twenty years in the field of tools. As the Chinese are great pragmatists, they have joined forces with real specialists who are world-renowned for their know-how in the field of organizing trade fairs, namely Koelnmesse. Thus was born in collaboration with the very powerful union called China National Hardware Association, the CIHS show, acronym for China International Hardware Show, which was held this year on the site of the Shanghai New International Exhibition Center. As you might expect, this association was not born by chance. Indeed, our friends and neighbors across the Rhine had essential expertise in the field of tools, since they run the very famous event called Eisenwaren Messe, the European leader in the profession. It goes without saying that these two were made to unite their destinies to set up a major event in a city as dynamic and energetic as Shanghai. In any case, their marriage works wonderfully and offers, whether in Asia or in Germany, the ultimate in the profession, whether in the field of organization, or in terms of variety and depth of the offer in the field of tools and its derivatives. The only real difference lies in the frequency, since the German session is biennial while the Chinese event is annual. In any case, the CIHS is the incomparable showcase of the profession on the territory of the Chinese giant, and the numerical results constitute the most irrefutable proof of this, as proven by the statistics of this 2024 edition which nevertheless took place in an economic and geopolitical environment that was tense to say the least.
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Eloquent statistics
There is no need for emphatic praise, just look at the numbers, and they are impressive. Thus, it is no less than 2800 companies from 15 countries and regions who presented their new products and innovations on an area of 120,000 m2 to 22,896 visitors from 109 foreign countries. However, these statistics call for some comments. The number of exhibiting companies from various continents that made the trip is not considerable. This has a reason. First of all, the tool market is now essentially in the hands of national manufacturers and exhibitors now reign supreme in this sector. This reality demonstrates, if it were still necessary, the Chinese dynamics on the market of tools, hardware, and its derivatives (we will come back to this) and especially its global hegemony in this field. It should also be noted that these results are the fruit of a subcontracting offer that proves the know-how of the manufacturers of the Middle Kingdom, who always know how to adapt to the demand of all world markets, whatever the specifications of buyers from all countries. It is therefore now necessary to say that CIHS show is more than ever the mecca of sourcing. No one in the world is able to offer such a varied offer in volume. The phenomenon was even more evident during this 2024 session, which was held from October 21 to 23, since it was joined by the presence of 2 extensions named China International Building Hardware & fastener show for the first and China International Lock & Security Doors Shows 2024 for the second. Finally, two new sectors have completed this exhaustive anthology, namely gardening and its tools and safety-related equipment. It goes without saying that in these areas, Chinese exhibitors occupied almost all the available spaces. Should we be alarmed, in a context of desire for neo-protectionism? Not really. Indeed, everyone finds their account there and especially the buyers who are offered the space of these three days, a huge market place, which is found nowhere else on the planet than at the CIHS show. It is therefore not by chance that they came from 109 countries and regions to a show that is unique in its field. On the other hand, we must not forget national exchanges. Chinese buyers from all sectors know full well that such an event is also a godsend for them. In short, a highly specialized trade show benefits all players in a profession regardless of where they come from. Finally, there remains the unmissable attraction of Shanghai for visitors from all over the world, thanks to the hotel and airport infrastructure, and the ease of transport to the exhibition center. All this weighs heavily and makes the show more unmissable than ever. And the impact of Covid in all this? Inside the country and especially in the hard-hit megalopolis, it seems to have disappeared. What about foreign visitors? The situation continues to normalize and even improve spectacularly. Indeed, the government has taken a more than positive decision, by allowing citizens of around twenty nations to enter the country without a visa. All you need is a simple passport to cross the border. This measure is still temporary, since it lasts until the end of December, but it is likely that it will continue. China also needs to find its tourists again.
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A truly comprehensive offer
The force from the CIHS show, it is the exceptional diversity of its offer. Its fundamentals remain the same. Tools in all their forms for use in building and construction. We must also add abrasives, locksmithing and fastening technologies with the new roommates present this year in the park. Finally, there were also the new segments. The first concerned protection and security, which is quite logical given how sensitive these subjects are these days. But more surprisingly, the garden sector was present. Of course, it did not really clutter the exhibition halls. Moreover, does this new feature prove an interest in a highly Western activity? It seems that we should probably rather see among consumers in the Middle Kingdom, a craze for everything related to nature, especially in large cities. The phenomenon is also growing among the younger generations. However, let us not delude ourselves. European-style gardening in China is not and will never be a mass phenomenon, due to a harsh climate regardless of the seasons, alternating between extreme cold and extreme temperatures in summer over most of the country. In our opinion, this should be seen as a potential for export development. Indeed, beyond the domestic market, which is still struggling somewhat following the Covid episode, which has aggravated a latent crisis in construction and consequently in housing, industrialists and manufacturers of all sizes have more than ever repositioned themselves on export, with the support of the authorities who have encouraged and strongly supported industrial redeployment in all areas for export markets, with success, leaving no sector behind.
Connectivity and durability
In terms of new products, nothing spectacular. The world of tools does not give any room to fantasy. It is serious. Nevertheless, strong trends are emerging. They are called sustainability and connectivity. The first was the common thread of the global offer. Like what is practiced in the world, Chinese manufacturers have not missed the train of this concept, a little corny in its terms, but which has established itself in all sectors of activity. Non-sustainable products, therefore, not environmentally friendly, no longer have a say anywhere in the world, and China, long accused rightly or wrongly of not respecting the specifications that this new demand implied, has largely caught up in this area. Not only are the products durable, but they have progressed in quality in a very spectacular way to be at the level of European standards today. This is also an asset for foreign buyers who find an offer that meets their requirements. On the technological front, unsurprisingly, connectivity has also found its place. This was particularly true in locksmithing.
So here is a 2024 session rich in a unique offer in quantitative terms. But the overall quality is there, without forgetting the price attractiveness of the production presented, more relevant than ever in a world where inflation is looming. These aggressive prices are China's strength. All that remains is to lift the last customs barriers still in force and the psychological brakes on the part of foreign visitors still a little frightened by the consequences of COVID. The geopolitical and economic situation remains in a crisis mode. But that is not the responsibility of the show. In the meantime, the CIHS and his partner Koelnmesse have regained their place at the top.