Research and Analysis on the Development Trend of Power Tools Industry in China

Abstract Power tools are the most widely used hardware tools in the whole society. Power tools have been developed from industrial use to indispensable tools in family life because of their light structure, convenient carrying, high production efficiency and low energy consumption. . With the globalization of the economy, the power tools city...

Power tools are the most widely used hardware tools in the whole society. Power tools have been developed from industrial use to indispensable tools in family life because of their light structure, convenient carrying, high production efficiency and low energy consumption. With the globalization of the economy, the power tool market has developed rapidly. In recent years, the power tool industry has shown a rapid development trend. In the domestic power tool market, the sales volume of domestic power tools has accounted for 90% of the total sales volume, while the various imported brand products only account for 10% of the market. In the foreign power tool market, China's manufacturing ratio continues to expand. China has become the world's leading exporter of power tool products and a global power tool production base. The industry has great potential for development.

China's professional electric tools with high technical content and strict functional requirements still have large potential markets in Europe and the United States. Currently, industrial countries in economically developed regions, such as Germany, the United Kingdom, the Netherlands, France, etc. in the European region, the United States, Canada in the North American region, Japan in the Asian region, etc., are very common in household work, accounting for the total output. About 50% to 70% of China's electric tool products have a large share in the market of household electric tools in the above countries and regions, but the export of professional electric tools produced in China to the above regions is not large. Industrial professional power tools have high technical content, safety and electromagnetic compatibility, and have strict requirements on function, work efficiency, reliability and durability. The price is several times or even more than 10 times of similar DIY tools. Professional power tools are well-known brands in the world, such as Hilti, Bosch, Mai Taibao's electric hammer, Black & Decker's electric drill, Makita's electric planer and other woodworking tools, century circular saws.

China's export of electric tools has accounted for 85% of the world's electric tools sales, but the export value only accounts for about 40% of the total sales. The main reason is that China's power tool manufacturing industry has not yet established its own brand in the international market, especially the industry. With professional power tools, the OEM is generally used, and the market competition of domestic enterprises is not standardized, which makes the export price lower and lower. For example, in 2001, the average price of power tools exported was US$12.72 per unit, while the average export price of US-funded enterprises was US$18.74 per unit. The average price of imported electric tools was US$45.94 per unit. Therefore, China is improving its product technology and developing industrial power tools. After it has been established from internationally renowned brands, it will be able to expand the market and create greater economic benefits.

Developing countries and economically underdeveloped countries are the potential target markets for household (DIY) power tools in China. Power tools are used relatively less in economically underdeveloped or relatively backward third-world countries. With the development of the economy and the advancement of the material and cultural level, household daily power tools will gradually increase. For example, in the Asian region, the market share of power tools sold to Asian countries in China has been increasing year by year. In 2003, compared with 2002, it increased by 2.6 percentage points. Therefore, the potential market for household electric tools in developing countries and economically underdeveloped countries is enormous.

China's power tool market is maturing, brand awareness and brand effect will be highlighted. In the next few years, the share of domestic power tools will further increase. As the demand for power tools continues to heat up, it will promote the development of production and operation in related enterprises in China, and the industry prospects are expected.

However, despite the rapid development of China's power tool industry, it faces the following challenges:

1. Compared with the high level in the international market, China's power tool production technology and management level is low, and the product function is single. In order to become bigger and stronger in the international market competition, it is necessary to expand the market share of the middle and high-end market, and the international market competitiveness of products needs to be further improved.

2. Due to the low barriers to entry in China's power tool industry, the investment in independent innovation, product research and development, brand cultivation, etc. is relatively small. The awareness of power tools with independent intellectual property rights in the international market is far from enough, international marketing The network has not yet been effectively established. Independent innovation capability and brand awareness must be further strengthened.

3. Foreign trade exports are facing a severe situation. 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., remain at high prices, resulting in the production cost of power tools. Continue to climb, directly affecting the export benefits of the product. With the application of industrial ceramics, high-performance soft magnets and new plastic packaging materials on new products, it is expected that the application of new low-carbon environmental protection materials will increase in the future.

4. The continuous appreciation of the renminbi has a certain impact on the export of electric tools. China's power tool industry has to achieve new achievements in foreign trade, and many difficulties still need to be overcome.

5. The status of China's power tool exporting countries is increasingly being challenged by developing countries. The level of technology and management in developing countries is currently improving to a large extent, and labor and raw material costs are low, which has brought a lot to China's power tool industry. Large competition pressures and international competition are becoming increasingly fierce.

6. The international and domestic markets are more critical of 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. .

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