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The Status of Fastener & Hardware Market in Romania
Overview:
Compared to other EU countries, Romania’s fastener and hardware market is relatively small. Before the 2008 global economic crisis, its market value was forecasted to be around EUR400 million, up 15% yearly. Its market value of respective fastener and hardware products is as follows:
- screws, bolts and nuts: EUR150 million
- metal base mountings: EUR150 million
- padlocks and locks: EUR50 million
- nails, tacks and staples: EUR50 million
During 2009 to 2011, due to the industrial growth in Romania, market demand for fasteners and hardware grew relatively stable.
Marketing Channel:
Industry market can be categorized into consumer market and professional market with different corresponding channels of trade. The most prominent channels of consumer market are importers, distributors and DIY franchises. There are lots of DIY stores in Romania, mostly owned by foreign companies such as Bricostore, Praktiker, Baumax, Hornbach, OBI, Mr. Bricolage and Leroy Merlin, etc. But, the above foreign companies don’t possess their own purchasing divisions locally, and the leading company of Romania’s DIY market is Dedeman owned by Romanian.
In terms of the professional market, direct purchasing chances remain limited; therefore, if exporters expect to supply products to the professional market, they’d better look for specific importers and agents. Moreover, both miniature hardware manufacturers and builders who would subcontract parts of the production are other channels for exporters.
Manufacturer:
- S.C. Organe de Asamblare SA - mainly manufactures bolts, screws, nuts and rivets based on ISO, DIN and UNI or customization.
- IOMA
- EUROSTEEL SRL
Importer:
- Bendkopp SRL
- ROCAST
- SEA Romania
- FABORY
- SAGITTA
Price Structure:
Product profit tends to be determined by specification and brand. Private brands gain less profit than famous brands; besides, products with normal specification receive less profit than products with special specification. According to the local industry analysis, the following is the referable indicator of related channel sales’ profits:
| Consumer Market | Professional Market |
Direct Provider | 10~15% | 10~15% |
Agent | 3% | 3% |
Importer / Distributor | 15~20% | 10~15% |
DIY Franchise / Retailer | 50~150% | - |
Direct Purchasing | - | Max 10% |
Import:
Compared to other countries importing fasteners and hardware, Romania is a relatively small importing country. Its gross import value in 2011 was around EUR250 million (+20% over 2010). The main imported products and the percentage they respectively account for among the gross import value are as follows:
- screws, bolts and nuts: 42%
- metal base mountings: 36%
- padlocks and locks: 14%
- nails, tacks and staples: 8%
The Gross Import Value of Fastener & Hardware during 2007~2011 in Romania
| Gross Value (million EUR) | Increase |
2011 | 251.18 | +21.5% |
2010 | 206.71 | +39.3% |
2009 | 148.39 | +23.6% |
2008 *F | 120 | -39.6% |
2007 | 198.60 | - |
Based on Taiwan’s information for exports, Romania is the 26th destination of Taiwan exports of fasteners and hardware in 2010 (+94%), totaling 7.55 million kilograms.
Romania imposes 3.7% import duty on Taiwan’s fasteners and hardware; nevertheless, in certain cases, the anti-dumping duty imposed on Chinese and Taiwanese enterprises is as high as 23.6% or even 26~27%.
Opportunity:
1. Romania is a net import country of fasteners and hardware.
2. Romania’s gross import value demonstrated upward over three years.
3. The industrial growth in 2011 improved 5.6% predicted to keep growing steadily in the years to come, bringing more demands and opportunities to the market of fasteners and hardware.
4. Recently there has had an obvious growth of Romania’s imports of fasteners and hardware from Taiwan.
5. Romania’s manufacturers of fasteners and hardware also provide OEM to Taiwan’s.
Risk:
1. The current anti-dumping measures for imported products.
2. Anti-dumping duty is also applied to China’s products while Taiwan’s products still need to encounter the low-price competition induced by products made in China.
