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Since the mid-1990s, after efforts, in China's power tool market, the dominant position of domestic power tools has gradually formed, and has been further consolidated in recent years. The information gathered from various aspects shows that in the domestic power tool market, the sales volume of domestic power tools has accounted for 90% of the total sales, while the various imported brand products only account for 10% of the market. In the foreign power tool market, the proportion of manufacturing in China is expanding, and China has become a foreign power tool production base.
Since the first half of 2008, domestic power tool brands have prevailed and become the market leader. Luo Baihui, secretary general of the International Association of Mould & Hardware Plastics Industry Suppliers, believes that in the next five to ten years, China’s power tool market will have a higher share of domestic power tools, and its competitiveness will be stronger. The main reason lies in domestic power tools. Both the appearance and the internal quality can compete with the imported brands, but the sales price is only one-third or even lower than the imported brands.
Many import and export brand power tools (handheld tools, portable tools, garden tools) are produced by many domestic power tool companies, including many professional or semi-professional power tools. Since it can produce professional and semi-professional power tools for internationally renowned power tool companies, the level of self-owned brand power tools produced by themselves can also reach the level of foreign products. It is understood that there is a domestic power tool enterprise that insists on the high quality of its own branded products designed and manufactured by itself when it is OEM for a well-known international power tool. It is better than (especially in service life). OEM products, thus maintaining independent intellectual property rights, did not “contribute†their own patents to foreign companies because of the production of OEM products. This practice is very correct. Even if we do not receive orders from this well-known foreign power tool company in the future, we must maintain our own intellectual property rights and high-quality products. This will strengthen the domestic market share and expand year by year. For companies that do this, the competitiveness of the products will be strong and powerful.
The domestic power tool market is more critical to the quality and brand of power tools. Whether it is a power tool dealer or a direct user, the quality and brand of power tools are highly valued. Therefore, the market has increased the inclination of good quality and good brand power tools. This is an improvement, indicating that the power tool market is maturing. Because of this, the brand awareness and brand effect of the domestic power tool market are more prominent. Many power tool dealers, especially those with a small strength and scale, are highly motivated to distribute good brand power tools. . It is precisely because of this that the famous brand products of the six power tool companies that have won the title of China's famous brand and a number of power tool products that have obtained provincial (city) brand names have received more care from the market. They generally feel that the market is selling well and production is busy. Even shouting "it is too late to produce." According to our understanding, Shanghai Ruiqi Tools Co., Ltd., Zhejiang Boda Electric Co., Ltd., Tieqi Power Tools Co., Ltd., Jiangsu Dongcheng Power Tools Co., Ltd. and other power tools companies with good quality and excellent brand have a good marketing situation. According to industry insiders, Dongcheng brand electric tools produced by Jiangsu Dongcheng Power Tools Co., Ltd. have a good market sales. Many dealers compete for agency or operation, and they have carefully operated and produced positive effects. In order to expand the market, Jiangsu Dongcheng Power Tools Co., Ltd. has strengthened marketing management and after-sales service, and implemented Dongcheng brand specialty stores, which not only effectively promoted marketing, but also curbed the breeding of counterfeit products. It is also understood that powerful enterprises such as Jiangsu Dongcheng Power Tools Co., Ltd. pay great attention to domestic marketing, relying on the distribution and maintenance of electric tools distributed by the “Qidong fellow†in small, medium and even county-level cities across the country. . Thanks to the help of “familyâ€, marketing has been promoted to large, medium and small cities across the country, and marketing outlets are dotted around, almost “networking†to every “cornerâ€. Thanks to the help of “familyâ€, there is even more protection in the return of money. Therefore, a successful enterprise like Jiangsu Dongcheng Power Tools Co., Ltd. is worthy of research and study by the industry.
According to Luo Baihui, some of the electric tool companies in the Yongkang area are also promoted by the “familyâ€. Because of the power tool dealers across the country, there are also Yongkang people. This team has become a "basic team" for many Yongkang power tool companies to promote products and build marketing networks. However, Yongkang’s power tool owners are generally inferior to Qidong City in terms of number and geographical distribution. It is said that the marketing effect is generally not comparable to the “Qidong fellows†across the country.
We have noticed that some of the smaller power tool companies are able to maintain their livelihoods and have a certain market share. These enterprises, due to their small strength and small scale, rely solely on the characteristics of their products, consolidate their own markets, consolidate their partnership with “old customersâ€, and at the same time try their best to expand market capacity in order to survive. Such companies tend to pay more attention to the marginal market, because in these places, key enterprises in the industry may not be able to take care of it, or because the market is small, and “look upâ€, but for small businesses, they can make a difference. However, it can be known from the operation of the first half of the year that many small enterprises in the industry have had a difficult time, and they are unable to compete with large enterprises. Therefore, for this part of the enterprise, how to go in the future, we must seriously study.
Paying attention to the research, visits and interactions with the market, its own wholesalers and key customers is also the key work of many enterprises in China's power tool industry. With the development of the market, the mastery of the market, the understanding of its own wholesalers, key customers, and the interaction with dealers and customers are becoming more and more important, and the role is also growing. Many key industry key enterprises, such as Jiangsu Dongcheng Power Tools Co., Ltd., Shanghai Ruiqi Tools Co., Ltd., Shanghai Huxiao Power Tools Co., Ltd., Jiangsu Guoqiang Tools Co., Ltd., all attach great importance to this and work hard. Industry insiders report that many companies' chairman and general manager personally visit wholesalers, distributors, or major customers from all over the world to listen to opinions, understand the sales of their products in their regions, and master the market for products and after-sales service. In response, we will work with dealers to study how to increase brand awareness, better promote new products, and consolidate and expand marketing performance. There are a lot of power tool dealers who are very satisfied with the company's leadership to go to the market to understand the situation, listen to opinions, and jointly study and expand the market, and improve the enthusiasm of distribution. Production companies have also collected a lot of constructive opinions and suggestions, which have become an important basis for improving product design and developing new products. It is gratifying that under the conditions of market economy, many of our power tool enterprise leaders can consciously and frequently visit the market and inspect the market. This is worth promoting. Many power tool companies have held dealer meetings to carry out networking and interaction, and the results are very significant.
There are indeed counterfeit products in the domestic power tool market, and counterfeit products are good brand products and good sales. However, people have also noticed that the current counterfeiting behavior is more subtle and more ambiguous. Many counterfeit products are characterized by counterfeiting but not inferior. Many fake products can be confusing in terms of appearance and internal quality, making it difficult for ordinary people to distinguish. True or false. This brings great difficulty to counterfeiting. Therefore, the energy, manpower and financial resources required for counterfeiting are also greater. This is a trend worthy of attention. Counterfeiters know that in today's market, power tools with poor quality are difficult to sell. Even if they are sold, there are many troubles after sale. Therefore, “pseudo and not inferior†becomes the “factory management†of counterfeiters. policy". In this market trend, all power tool companies, especially branded power tool companies, should pay close attention and take effective measures to curb them. Many power tool companies also have many good ways to deal with counterfeiting, such as establishing a branded product franchise network, entering their products into hypermarkets, and selecting reliable dealers. In this regard, many industry companies have also achieved a lot of practical experience.
China's leading brands of imported electric tools - Makita, Bosch and Hitachi power tools, Luo Baihui believes that these three brands account for about 70% of all imported power tools in China, and the remaining 30% market share is other Imported brands are “dividedâ€. It is understood that in China, the total sales volume of imported brand power tools is not large, but there are only four or five million units in the whole year. In terms of quantity, import tools are indeed only a supplement to the majority of power tool users. However, due to the high price, the proportion of sales is higher. According to statistics, in the first quarter of this year, China imported a total of 134,400 sets of various electric tools, with an import value of 11.25 million US dollars. On the surface, it seems that the quantity is not large, but the imported electric tools actually sold in the Chinese market are far more than this number, but should be nearly ten times this figure, that is, there are about 1.2 million units. Because, in fact, most of the imported brand power tools are produced directly after the production of foreign-owned enterprises in China, and do not have to import from outside the country. In the second quarter of this year, the import volume of power tools was roughly equivalent to that of the first quarter. Therefore, in the first half of the year, the market sales of imported electric tools in China will not exceed 2.5 million units.
The export situation of China's power tools is still grim, and the unfavorable factors that plague the industry's foreign trade exports still exist, and the impact is even greater. For example, the raw material price increase factor. The main raw materials for the production of electric tools such as steel (including silicon steel sheets), copper (enamel products such as enameled wire), aluminum alloys, magnesium alloys, engineering plastics, etc., have risen sharply (or remain high), so that the production cost of power tools continues to rise. Directly affect the export benefits of the product. In addition to increasing the price of raw materials (including domestic sales and export), the company has no other solutions. The original potential of “saving potential†has been exhausted, and then it can only save “stolen workâ€. It is. But this is not possible, because cutting corners will affect the quality of the product and will bear the risk of customer returns or claims. In addition, international environmental regulations such as the ROHS directive implemented by the European Union and the PAHS certification of Germany also do not allow the use of low-quality materials for export products. Therefore, the impact of the sharp rise in raw material prices on enterprises has made it difficult for companies to digest.
The continuous appreciation of the renminbi has made the impact on the export of electric tools more obvious, and it is “endless†and it is difficult for export enterprises to cope. Enterprises have appreciated the appreciation of the renminbi. Although they have made an appropriate increase in export prices, they have not kept up with the appreciation rate of the renminbi. The company reflected that the price of the product has just been mentioned, and the renminbi has appreciated. However, the price of the product cannot be mentioned and cannot be negotiated with customers repeatedly. It is understood that many manufacturers of power tool export products have also taken some measures against the continuous appreciation of the RMB exchange rate. For example, if export products are purchased through domestic foreign trade companies, they should be settled in RMB as much as possible to avoid exchange rate changes; For foreign exports, the negotiations are settled in other currencies. But this is only an individual phenomenon, and the vast majority are still settled in US dollars, so it cannot solve the problem fundamentally. According to relevant industry sources, the number of China's power tools exported to the EU region accounts for 45% or even more of the total export volume. Export enterprises can negotiate with foreign investors to settle in euros. It is said that some companies have raised such issues, but it is not so smooth. In addition, there are geographical differences. The development model of small and medium-sized enterprises in the Pearl River Delta, which is mainly based on rented factory buildings, has been challenged in the crisis. In the case of declining efficiency, production costs are still rising and the burden on enterprises is heavier. The Yangtze River Delta is lighter in its cost advantages. Therefore, China's power tool industry must achieve new achievements in foreign trade exports, and the export volume does not decline. There is still much work to be done, and there are great difficulties to be overcome.
Domestic electric hardware tools market demand is strong, domestic sales are good
At present, the production and operation situation of China's power tool industry is still strong. The domestic market demand for power tools is still very large, and it will promote the development of the production and operation of domestic enterprises, which are mainly domestic sales, in a favorable direction. However, people have also noticed that due to the difficulties encountered in foreign trade exports, many power tool enterprises that originally only used foreign trade exports have begun or have turned to the domestic market, which has intensified competition in the domestic power tool market. Those enterprises that adopt a "defense" trend in the face of difficulties and do not think about progress will probably encounter more crises. Because the defensive is unstoppable, we must face the difficulties and overcome the difficulties before we have a bright future.