Analysis of Situation of Electric Tools in China

Since the mid-1990s, after hard work, the leading position of domestic electric tools has gradually taken shape in China's power tool market, and has been further consolidated in recent years. Information gathered from various sources shows that in the domestic electric tool market, domestic electric The sales volume of tools has accounted for 90% of the total sales, while various imported brand products only account for 10% of the market share. The foreign power tool market, the proportion of China's manufacturing continues to expand, China has become a foreign power tool production base.

From the first half of 2008, the domestic power tool brands have gained the upper hand and become the market leader. Related experts believe that in another 5 or 10 years, the share of domestic electric tools will increase in China's power tool market. The main reason is that the domestic electric tools are basic or already able to compete with imported brands, regardless of appearance or internal quality, but the sales price is only one third of the imported brands, and even lower.

Many of the import and export brands of power tools (hand-held tools, portable tools, and garden tools) are manufactured by many domestic power tools companies, including many professional or semi-professional power tools. Internationally-renowned power tools companies OEM production, semi-professional power tools, of course, their own production of their own brand power tools can also fully meet the level of foreign products. It is understood that there is a domestic power tool companies, in a well-known international power tools companies When OEMs produce certain kinds of power tools, they still insist on the high quality of their own brand products designed and manufactured by themselves, and are better than (especially in the service life) OEM products, thus maintaining independent intellectual property rights, and not because of the production of OEM products. The "contribution" of their patents to foreign companies is very correct. Even if they do not receive an order from a well-known foreign power tool company in the future, they must maintain their own intellectual property rights and high-quality products. This will make the domestic market share. Consolidate and expand year by year. All companies that do this, the product's competitiveness is strong and powerful.

The domestic electric tool market is even more discerning about the quality and brand of electric tools. No matter whether it is an electric tool distributor or a large number of direct users, it attaches great importance to the quality and brand of the electric tools. Therefore, the market has a good quality, and the tilt of the good electric tools has increased. Da. This is a kind of progress, 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 distributors, especially those with slightly more powerful and large-scale power tools Businesses have shown high enthusiasm for the distribution of branded power tools. It is precisely because of this that the branded products of the six power tool companies that have won the title of China Top Brand and a number of power tools products with provincial (city) brand names have been accepted by the market. More care, generally feel that the market has a good market, production seems busy, and some even shouted "too late to produce." According to our understanding, Shanghai Ruiqi Tools Co., Ltd., Zhejiang Boda Electric Co., Ltd., Tiejun Power Tools Co., Ltd., Jiangsu East Electric Power Tools Co., Ltd. and other products with good quality, excellent brand power tools companies, marketing situation is very good. According to sources, Dongcheng Electric Tools Co., Ltd., a manufacturer of Jiangsu Dongcheng Power Tools Co., Ltd., has a very good market, many distributors scramble to operate or operate, and it has been meticulously operated and has a positive effect. To expand the market, Jiangsu Dongcheng Electric Tool Co., Ltd. has also strengthened its marketing management and after-sales service, and promoted Dongcheng brand stores. This not only promotes marketing but also curbs the growth of counterfeit products. It is also understood that companies like Jiangsu Dongcheng Power Tools Co., Ltd. are powerful companies. In domestic marketing, we paid great attention to the distribution of electric tools distributed in major, medium, and even county-level small cities throughout the country. Our maintenance services are our own services. With the help of “hometowners,” marketing can be promoted throughout the country. In the medium and small cities, the marketing outlets are dotted, and they are almost “narrow” to every “corner”. Because they rely on the help of the “townships”, they also have more guarantees for the recovery of the goods. Therefore, such as Jiangsu Dongcheng Power Tools Co., Ltd. A successful company is worthy of industry research and learning.

It was also learned that some of the electric tools companies in the Yongkang area were promoted by the “hometown”. Because there are also a number of electric tools dealers across the country, there are also Yongkang people. This team also became a lot of Yongkang electric tool companies. Promote products and build a “basic team” of marketing networks. However, the number of electric tools owners of Yongkang's nationality is generally not as good as that of Qidong City in terms of geographical distribution. It is said that the overall marketing results are not comparable to the “Qidong fellows” across the country.

We have noticed that some of the smaller power tool companies are relying on specialty products to maintain their livelihoods and occupy a certain market share. These companies, due to the relatively small size and strength of the company, rely solely on the characteristics of the products to consolidate their own market. , consolidate the partnership with “old customers” and at the same time try to expand the market capacity in order to survive. Such enterprises often pay more attention to the marginal markets, because these places, the key enterprises in the industry may not be able to attend, or because The market is small, but it is "frustrated," but for small businesses, you can make a difference. However, from the operation of the first half of the year, you can know that many small businesses in the industry have a difficult life and they are unable to cope with large companies. Competition. Therefore, for this part of the company, the way forward will have to be carefully studied.

Paying attention to the market, researching, visiting, and interacting with their own wholesalers and key customers is also a key task for many companies in the electric tool industry in China. With the development of the market, the market is under control, and understanding of their own wholesalers and key customers is also important. , The interaction with dealers and customers is becoming more and more important, and the role is getting bigger and bigger. Such as Jiangsu Dongcheng Power Tools Co., Ltd., Shanghai Ruiqi Tools Co., Ltd., Shanghai Tigers Power Tools Co., Ltd., Jiangsu Guoqiang Tools Co., Ltd. The company and many other key industrial companies have attached great importance to this and have done their work in a down-to-earth manner. Industry insiders report that the chairman and general manager of many companies have personally visited wholesalers, distributors, or major customers across the country to listen to opinions. , Understand the sales situation of their products in the region, grasp the market's response to the products, and after-sales service, work with distributors to study how to increase brand promotion, better promote new products, and consolidate and expand marketing performance. Many electric tool distributors are very satisfied with the way in which business leaders go deep into the market to understand the situation, listen to opinions, and jointly study and expand the market. The distribution enthusiasm. The production companies also collected a lot of constructive comments and suggestions, becoming an important basis for improving product design and developing new products. It is worthwhile to be led by many of our power tool companies under the market economy conditions. All of these companies are consciously aware of the fact that they regularly visit the market and inspect the market. This is worth promoting. Many electric tool companies have held dealer conferences to carry out networking and interaction. The effect is very significant.

There are indeed counterfeit products in the domestic electric tool market, and counterfeits are good brand products and good-selling products. However, people have also noticed that the current counterfeiting is more subtle and means are more rampant, and many counterfeit products are fake. Because of its non-serious characteristics, many counterfeit products can be confusing in appearance and intrinsic quality, making it difficult for ordinary people to distinguish between authenticity and counterfeiting. This poses great difficulty in counterfeiting. Therefore, the energy required for counterfeiting is also limited to manpower and financial resources. Bigger. This is a trend worthy of attention. The 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 the sale, so “pseudo-non-inferior” Has become a counterfeiter's "set up factories operating principles." This market trend, the various power tool companies, especially branded power tools companies should pay close attention and take effective measures to curb. Many power tool companies have to deal with counterfeiting Many good ways, for example, to establish a franchised network of branded products, to put their products into hypermarkets, to select reliable dealers, etc. In this regard, many industry companies have also gained a lot of practical experience.

The main brands of electric tools imported from China, namely Makita, Bosch and Hitachi, are concerned that the three major brands in China account for about 70% of all imported electric tools, and the remaining 30% share market share. Other imported brands are "carving up." It is understood that in China, the total sales volume of imported branded electric tools is not large, but only four or five million units in the whole year. In terms of quantity, the imported tools are indeed only for the majority of electric tool users. A supplement, but because of the high price, the proportion of its sales is higher. According to statistics, in the first quarter of this year, China imported a total of 124,400 sets of various power tools, the amount of imports was 11.25 million US dollars. From the surface, it seems that the quantity is not Large, but actually imported electric tools sold in the Chinese market are far more than this number, but should be nearly ten times that figure, that is, there are about 1.2 million units. Because, in fact, the vast majority of imported brand electric tools, All foreign-funded enterprises in China are direct after production, and do not have to import from outside the country. In the second quarter of this year, the number of imported electric machine tools was roughly the same as in the first quarter. Therefore, in the first half of the year, China imported electric tools. Market sales will not exceed 2.5 million units.

The export situation of China's power tools is still severe, and the unfavorable factors that plagued the industry's foreign trade exports still exist, and the impact is even greater. For example, factors such as rising prices of raw materials, steel (including silicon steel sheets), copper (copper wires and other copper products), aluminum alloys, Magnesium alloys, engineering plastics and other major raw materials for the production of power tools, prices rose sharply (or remain high), so that the cost of power tools continues to rise, directly affecting the export efficiency of products. The impact of rising raw material prices, in addition to In addition to increasing the price of product sales (including domestic sales and exports), enterprises have no other solution. The potential of the original “saving and tapping potential” has been excavated, and then there is only “sheltering.” But this is impossible because Cutting corners will affect the quality of products and will bear the risk of customer returns or claims. In addition, international environmental protection regulations such as the ROHS directive implemented by the European Union, the German PAHS certification also do not allow the use of low-quality materials for export products. As a result, raw material prices have risen sharply The influence of the enterprise itself has been difficult to digest.

*** Continuous appreciation, the impact on the export of electric tools is even more pronounced, and it is endless, the export companies are difficult to deal with. The company’s appreciation against ***, although made at the export price Appropriately raised, but it can not keep up with the appreciation rate of ***. The company reflects that the product price has just been mentioned, *** has appreciated, but the product price can not be mentioned on the mention, can not be repeated with the customer consultation. It is understood that not Some manufacturers of electric tools and export products have adopted some measures in response to the continuous appreciation of the exchange rate. For example, where export products are purchased through domestic foreign trade companies and exported, they should try to settle with *** to avoid changes in exchange rates; For foreign exporters, the negotiation is settled in other currencies. However, this is only an individual phenomenon. The vast majority are still settled in U.S. dollars and therefore cannot fundamentally solve the problem. Persons in the industry suggest that the number of electric tools exported to the EU in China will account for To 45% of the total export volume or even higher, exporting companies can negotiate settlements with foreign investors 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 Pearl River Delta to hire factory production for The SME development model was challenged during the crisis. With the decline in efficiency, production costs are still rising and the burden on enterprises is heavier. The Yangtze River Delta is less burdened with its plant cost advantage. Therefore, China's power tool industry needs to obtain With the new achievements in foreign trade exports, there will be no decline in export value. There is still a lot of work to be done, and there is great difficulty to be overcome.

At present, the production and operation situation of China's power tool industry is still booming. The demand for domestic power tools market is still very large, and it will promote the production and operation of those enterprises that mainly focus on domestic sales among domestic enterprises. However, people have also noticed that due to foreign trade In the face of the difficulties encountered in exporting, many power tool companies that originally only made exports have started or have already turned to the domestic market, which has exacerbated the competition in the domestic power tool market. Those companies that have taken a “preserved” attitude and are unwilling to advance in the face of difficulties may fear it. Encounter more crises. Because you are unstoppable, you have to fight against difficulties and overcome difficulties to have a good future.