According to statistics of the Electric Tools Branch of China Electrical Equipment Industry Association, more than 85% of power tools used in the world today are produced in China, and many parts of power tools produced in foreign countries are also processed in China. China's exports of electric tools account for approximately the world's electric power. The total amount of tool exports is 40%. In 2010, the output of power tools in China reached 230 million units, a year-on-year increase of about 15%.
Over the years, China's power tools are mainly exported, with exports accounting for 85% to 90% of the total output, and domestic market sales accounting for 10% to 15% of the share. In spite of the large number of domestically-manufactured power tools, the market share of domestically-made power tools still reaches over 90% in the domestic market, and power tools manufacturing bases such as Jiangsu Qidong, Zhejiang Yongkang, Yuyao, and Guangdong are formed.
With the resumption of the global economic recovery, the latest purchasing managers' index shows that China's export orders for electric tools have fallen to a low level this year, and manufacturing companies have even been forced to withstand more than three months’ pressure due to rising costs and continued pressure to appreciate. The long list, coupled with the pessimistic outlook for Europe and the United States with 40% of the country's trade volume, has caused a slump in China's export market for electric tools. Experts predict that in the future, China’s export of power tools will not be able to resume the growth rate during the peak period.
Where is China's power tool industry?
Although China’s electric power tools are the largest in the international market, foreign exchange creation is very low. The reason is as follows: First, the vast majority of Chinese-made power tools are processed by "OEM" or "neutral packaging" and have no self-owned brands; second, foreign trade companies and production companies are pushing down prices and exporting companies. The low price competition between the two countries has caused the prices of products to decline year by year, which has seriously affected the economic benefits of exporting enterprises. Third, most of the electric tools exported by China are DIY (self-help) tools and cannot be used as professional tools. Therefore, the products cannot be sold. Make a good price.
From a general point of view, there is still a big gap between China's power tool technology level and manufacturing powerhouses, mainly due to poor product appearance, monotonous shape, unstable quality, high frequency squeaking, low unit weight output, and electromagnetic compatibility. Sex does not meet the requirements. For example, in terms of unit weight output, domestically produced electric drills are currently about 30-50 watts/kg lower than foreign brands; angle grinders are about 30-100 watts/kg lower; impact drills are about 30-80 watts/kg lower.
At present, users have increasingly high quality requirements for electric tools, and they are particularly concerned about product efficiency, weight, and longevity. Taking the construction industry as an example, the quality problems of domestically-made power tools are mainly reflected in the following: electric hammers are prone to heat, the continuous working time is short, the impact of electric hammers is small, and the vibration is large. The operator must use pressure to reach the depth; the drill bit is easy to wear and easy to use. Broken and so on.
At the same time, most products of domestic electric tools do not meet the requirements of environmental protection. According to relevant regulations, power tools should meet the requirements of the new standard for radio interference (commonly known as EMC). To improve EMC's technological level, new materials and new technologies must be used to reduce product noise, such as the use of rare earth permanent magnets. Permanent magnet power tools not only increase efficiency, but also reduce noise, eliminate radio interference, and improve product performance. At present, China is still in the trial production phase of permanent magnet power tools. In addition, domestic electric tools only impact electric drills, electric drills, electric hammers and Other few varieties of electronic speed control functions, most of which are single-speed products and cannot meet the requirements of users.
The low insulation level is also the bottleneck for domestic power tools to break through. At present, the insulation structure of domestic electric tools is E-grade, and foreign brands have reached B-level. At present, domestic companies have just started to conduct research on the B-series series motor insulation materials.
The research of ergonomics, electronic technology, large-capacity rechargeable batteries, fast chargers, insulation structures, transmission structures and styling designs was started earlier in foreign countries, and has been widely applied in power tools, and our country is in this area. Little research.
In the aspect of new product development, foreign companies have realized paperless design, generally adopting computer-aided design, auxiliary drawing, auxiliary manufacturing, and auxiliary testing. The new product development cycle is only 2 to 3 months. Most domestic companies are in the stage of experience design and prototype mapping. The new product development cycle lasts more than one year. Although computer-aided design has been applied in some enterprises, it has not yet been popularized in the industry.
For a long time, most of China's power tool companies have survived with a cheap labor force. Now, in the face of the fact that raw materials and labor costs have risen sharply, only a change will have a way out. The Chinese electric tool industry should focus on the following aspects.
First, further improve the quality of products and accelerate the development of new products. In particular, we must focus on accelerating the development of battery-powered tools and electronically controlled power tools. To focus on professional products and DIY products, focusing on the development of high-end professional products.
Second, the production technology must be integrated, networked, flexible, automated, professional, and coordinated.
Third, it is necessary to gradually export from the OEM and neutral packaging to export their own branded products. OEM production and neutral packaging production methods have played an important role in rapidly expanding the export of China's electric tools, but it is not a long-term solution. Because this kind of operation cannot establish the image of a Chinese company, it is impossible to create its own brand name. Our production company can only be an obscure processing factory, while the middlemen can earn huge profits. In addition, OEM production often conceals the hidden dangers of trademark infringement disputes.
Fourth, carry out safety certification of electric tools and electromagnetic compatibility certification, and implement the export license system for electric tools.
Creating its own brand In recent years, the market has become more and more critical about the quality and brand of electric tools. Both dealers and users attach great importance to the quality and brand of electric tools. It is imperative for China's power tools to become bigger and stronger and striving for their own world-renowned brands.
It should be said that China's power tool industry has made great efforts in creating its own brand. Since 2008, domestic power tool brands have been gradually recognized in the domestic market and become the dominant market.
Luo Baihui, secretary-general of the International Mould, Hardware and Plastic Industry Suppliers Association, believes that in the next 5 to 10 years, the share of domestic electric tools will increase in China's power tool market, and its competitiveness will be stronger. The main reason is that domestic electric tools have been close to imported brands regardless of their appearance or internal quality. The sales price is only one third of the imported brands, and even lower.
The author understands that nowadays, China's power tool industry is increasingly focusing on the transformation and upgrading of products, and the product innovation is fast. The new products have seen a leap in appearance, quality, performance, function expansion and added value. In 2010, the series of electric tools produced by Zhejiang Yongkang increased from the original 10 kinds to more than 50 kinds. The product specifications have also increased from more than 80 in the past to more than 200 now.
Since most of the Chinese electric tool companies started from “OEMâ€, they have their own shortcuts in creating their own brands.
Over the years, many world-renowned foreign brand electric tools have been produced by domestic companies, and many of them are professional electric tools. Since OEM production of internationally renowned power tools, there are samples that can be used for reference when developing an independent brand. It is understood that there is a domestic electric power tool company that insists on self-developed self-owned brand products, and has better performance (especially the service life) of OEM products in the market when OEMs produce several kinds of power tools for a well-known foreign power tool company. On the popular, foreign well-known enterprises in turn to spend money to buy this power tool company's technology patents.
There are many small-scale manufacturing companies in Germany and Switzerland. They have long been committed to technology research and development, and they are highly respected for their sophisticated products and brands based on the forests of the world. These types of companies tend to be more concerned about the marginal markets, because in these places, large companies may not be able to attend, or because the market is small, and “failureâ€, but for small businesses, you can make a difference. China's electric tool companies are generally small in size and can follow the practices of these companies and rely on specialty products to make the world. One is to specialize in a feature product and it is easy to achieve breakthroughs in technology; the second is that the market is relatively small and easier to do.
Based on the domestic market In recent years, not only the slow recovery of the global economy and the lack of purchasing power in the market, but also the unfavorable factors that have plagued China's power tool industry still exist, and the impact is even greater. First, the prices of steel (including silicon steel), copper (copper and other copper products), aluminum alloys, magnesium alloys, engineering plastics, and other raw materials have risen sharply, and the cost of production has continued to climb. The second is the continuous appreciation of ***, and the impact on the export of electric tools is even more pronounced. Although many companies have made appropriate price increases in response to the appreciation of ***, they have not been able to keep up with the appreciation rate of ***. The third is the shortage of funds. Fourth, the labor costs have risen sharply.
In the face of cruel reality, China's power tool companies must shift their sales focus from exports to the domestic market.
Ms. Zhao, the head of a power tool company in China Science and Technology Hardware City, which is located in Yongkang, Zhejiang, and the author talked about the market conditions of power tools in the recent period, said that at present, their power tools are mainly domestic sales, and the sales situation is still good.
It is understood that in the China Science & Technology Hardware City, more and more electric tool sellers are making efforts to sell in the domestic market. Some of them advertise to increase their popularity, others frequently participate in various exhibition activities, and some of them play the “Laoxiang†brand. Competition has become more intense.
As one of the eight pillar industries of Zhejiang Yongkang, the power tool has always been characterized by export-oriented features. Foreign trade exports are a major support for the survival and development of the Yongkang power tool industry. With cost advantages, Yongkang electric tool industry occupies a large market share in the international market. However, the rise in raw materials, the appreciation of ***, and the sluggish foreign market led to a sharp contraction of Yongkang's foreign trade orders for electric tools. This is undoubtedly a heavy blow to the Yongkang electric power tool industry. Many companies have stopped production or diverted, and the remaining companies are also experiencing difficulties. Days. In the face of difficulties, Yongkang electric tool industry has turned its attention to the vast domestic market, actively adjusted its marketing strategy, and positioned itself well for the domestic market. According to statistics, in the first half of this year, the sales volume of Yongkang electric tools reached 75.18 million units, an increase of 22% year-on-year, of which sales in the domestic market increased significantly.
With the fierce competition in the market, after-sales service has become an important factor to test the competitiveness of power tools companies. Products must not only meet the needs of users, but also provide convenient after-sales service. The interaction between production companies and dealers and customers becomes more and more. Important, the role is also growing. Research on the market, visits to wholesalers and key customers has become a key task for China's electric tool companies. Dealers have worked with companies to study the market and have increased their enthusiasm for distribution. The production companies learned about the sales of their products in the market, grasped the market's response to products and after-sales services, and also collected many constructive opinions and suggestions, which became an important basis for improving product design and developing new products.
Exploiting New Markets At present, the export situation of China's power tools is still severe. In order to restore the export market based on the domestic market, experts gave three suggestions.
The first is to conduct in-depth research and master the trade practices of European and American power tools. While stabilizing the share of China's power tools in the Western European and North American markets, it will actively explore new markets and achieve market diversification, with particular emphasis on exploring the African and Latin American markets. Eastern European market.
The second is to oppose low price competition and regulate the export market. Except for some foreign products, the prices of electric tools exported by China are relatively low. The main reason for this phenomenon is the low price competition between exporting companies. State-owned enterprises generally have better quality products, but they often lose in low-price competition due to higher costs. Some poor-quality or even poor ones use low-price competitive marketing methods to export in a row, causing adverse effects in the international market and damage. The image of Chinese products. Especially in the past two years, this phenomenon has been extended from the foreign trade market to the domestic market.
The third is to establish the concept of the buyer's market in the competition, and to realize the development of the company around the market, and the enterprise must turn from the production technology as the center to the marketing as the center.
Over the years, China's power tools are mainly exported, with exports accounting for 85% to 90% of the total output, and domestic market sales accounting for 10% to 15% of the share. In spite of the large number of domestically-manufactured power tools, the market share of domestically-made power tools still reaches over 90% in the domestic market, and power tools manufacturing bases such as Jiangsu Qidong, Zhejiang Yongkang, Yuyao, and Guangdong are formed.
With the resumption of the global economic recovery, the latest purchasing managers' index shows that China's export orders for electric tools have fallen to a low level this year, and manufacturing companies have even been forced to withstand more than three months’ pressure due to rising costs and continued pressure to appreciate. The long list, coupled with the pessimistic outlook for Europe and the United States with 40% of the country's trade volume, has caused a slump in China's export market for electric tools. Experts predict that in the future, China’s export of power tools will not be able to resume the growth rate during the peak period.
Where is China's power tool industry?
Although China’s electric power tools are the largest in the international market, foreign exchange creation is very low. The reason is as follows: First, the vast majority of Chinese-made power tools are processed by "OEM" or "neutral packaging" and have no self-owned brands; second, foreign trade companies and production companies are pushing down prices and exporting companies. The low price competition between the two countries has caused the prices of products to decline year by year, which has seriously affected the economic benefits of exporting enterprises. Third, most of the electric tools exported by China are DIY (self-help) tools and cannot be used as professional tools. Therefore, the products cannot be sold. Make a good price.
From a general point of view, there is still a big gap between China's power tool technology level and manufacturing powerhouses, mainly due to poor product appearance, monotonous shape, unstable quality, high frequency squeaking, low unit weight output, and electromagnetic compatibility. Sex does not meet the requirements. For example, in terms of unit weight output, domestically produced electric drills are currently about 30-50 watts/kg lower than foreign brands; angle grinders are about 30-100 watts/kg lower; impact drills are about 30-80 watts/kg lower.
At present, users have increasingly high quality requirements for electric tools, and they are particularly concerned about product efficiency, weight, and longevity. Taking the construction industry as an example, the quality problems of domestically-made power tools are mainly reflected in the following: electric hammers are prone to heat, the continuous working time is short, the impact of electric hammers is small, and the vibration is large. The operator must use pressure to reach the depth; the drill bit is easy to wear and easy to use. Broken and so on.
At the same time, most products of domestic electric tools do not meet the requirements of environmental protection. According to relevant regulations, power tools should meet the requirements of the new standard for radio interference (commonly known as EMC). To improve EMC's technological level, new materials and new technologies must be used to reduce product noise, such as the use of rare earth permanent magnets. Permanent magnet power tools not only increase efficiency, but also reduce noise, eliminate radio interference, and improve product performance. At present, China is still in the trial production phase of permanent magnet power tools. In addition, domestic electric tools only impact electric drills, electric drills, electric hammers and Other few varieties of electronic speed control functions, most of which are single-speed products and cannot meet the requirements of users.
The low insulation level is also the bottleneck for domestic power tools to break through. At present, the insulation structure of domestic electric tools is E-grade, and foreign brands have reached B-level. At present, domestic companies have just started to conduct research on the B-series series motor insulation materials.
The research of ergonomics, electronic technology, large-capacity rechargeable batteries, fast chargers, insulation structures, transmission structures and styling designs was started earlier in foreign countries, and has been widely applied in power tools, and our country is in this area. Little research.
In the aspect of new product development, foreign companies have realized paperless design, generally adopting computer-aided design, auxiliary drawing, auxiliary manufacturing, and auxiliary testing. The new product development cycle is only 2 to 3 months. Most domestic companies are in the stage of experience design and prototype mapping. The new product development cycle lasts more than one year. Although computer-aided design has been applied in some enterprises, it has not yet been popularized in the industry.
For a long time, most of China's power tool companies have survived with a cheap labor force. Now, in the face of the fact that raw materials and labor costs have risen sharply, only a change will have a way out. The Chinese electric tool industry should focus on the following aspects.
First, further improve the quality of products and accelerate the development of new products. In particular, we must focus on accelerating the development of battery-powered tools and electronically controlled power tools. To focus on professional products and DIY products, focusing on the development of high-end professional products.
Second, the production technology must be integrated, networked, flexible, automated, professional, and coordinated.
Third, it is necessary to gradually export from the OEM and neutral packaging to export their own branded products. OEM production and neutral packaging production methods have played an important role in rapidly expanding the export of China's electric tools, but it is not a long-term solution. Because this kind of operation cannot establish the image of a Chinese company, it is impossible to create its own brand name. Our production company can only be an obscure processing factory, while the middlemen can earn huge profits. In addition, OEM production often conceals the hidden dangers of trademark infringement disputes.
Fourth, carry out safety certification of electric tools and electromagnetic compatibility certification, and implement the export license system for electric tools.
Creating its own brand In recent years, the market has become more and more critical about the quality and brand of electric tools. Both dealers and users attach great importance to the quality and brand of electric tools. It is imperative for China's power tools to become bigger and stronger and striving for their own world-renowned brands.
It should be said that China's power tool industry has made great efforts in creating its own brand. Since 2008, domestic power tool brands have been gradually recognized in the domestic market and become the dominant market.
Luo Baihui, secretary-general of the International Mould, Hardware and Plastic Industry Suppliers Association, believes that in the next 5 to 10 years, the share of domestic electric tools will increase in China's power tool market, and its competitiveness will be stronger. The main reason is that domestic electric tools have been close to imported brands regardless of their appearance or internal quality. The sales price is only one third of the imported brands, and even lower.
The author understands that nowadays, China's power tool industry is increasingly focusing on the transformation and upgrading of products, and the product innovation is fast. The new products have seen a leap in appearance, quality, performance, function expansion and added value. In 2010, the series of electric tools produced by Zhejiang Yongkang increased from the original 10 kinds to more than 50 kinds. The product specifications have also increased from more than 80 in the past to more than 200 now.
Since most of the Chinese electric tool companies started from “OEMâ€, they have their own shortcuts in creating their own brands.
Over the years, many world-renowned foreign brand electric tools have been produced by domestic companies, and many of them are professional electric tools. Since OEM production of internationally renowned power tools, there are samples that can be used for reference when developing an independent brand. It is understood that there is a domestic electric power tool company that insists on self-developed self-owned brand products, and has better performance (especially the service life) of OEM products in the market when OEMs produce several kinds of power tools for a well-known foreign power tool company. On the popular, foreign well-known enterprises in turn to spend money to buy this power tool company's technology patents.
There are many small-scale manufacturing companies in Germany and Switzerland. They have long been committed to technology research and development, and they are highly respected for their sophisticated products and brands based on the forests of the world. These types of companies tend to be more concerned about the marginal markets, because in these places, large companies may not be able to attend, or because the market is small, and “failureâ€, but for small businesses, you can make a difference. China's electric tool companies are generally small in size and can follow the practices of these companies and rely on specialty products to make the world. One is to specialize in a feature product and it is easy to achieve breakthroughs in technology; the second is that the market is relatively small and easier to do.
Based on the domestic market In recent years, not only the slow recovery of the global economy and the lack of purchasing power in the market, but also the unfavorable factors that have plagued China's power tool industry still exist, and the impact is even greater. First, the prices of steel (including silicon steel), copper (copper and other copper products), aluminum alloys, magnesium alloys, engineering plastics, and other raw materials have risen sharply, and the cost of production has continued to climb. The second is the continuous appreciation of ***, and the impact on the export of electric tools is even more pronounced. Although many companies have made appropriate price increases in response to the appreciation of ***, they have not been able to keep up with the appreciation rate of ***. The third is the shortage of funds. Fourth, the labor costs have risen sharply.
In the face of cruel reality, China's power tool companies must shift their sales focus from exports to the domestic market.
Ms. Zhao, the head of a power tool company in China Science and Technology Hardware City, which is located in Yongkang, Zhejiang, and the author talked about the market conditions of power tools in the recent period, said that at present, their power tools are mainly domestic sales, and the sales situation is still good.
It is understood that in the China Science & Technology Hardware City, more and more electric tool sellers are making efforts to sell in the domestic market. Some of them advertise to increase their popularity, others frequently participate in various exhibition activities, and some of them play the “Laoxiang†brand. Competition has become more intense.
As one of the eight pillar industries of Zhejiang Yongkang, the power tool has always been characterized by export-oriented features. Foreign trade exports are a major support for the survival and development of the Yongkang power tool industry. With cost advantages, Yongkang electric tool industry occupies a large market share in the international market. However, the rise in raw materials, the appreciation of ***, and the sluggish foreign market led to a sharp contraction of Yongkang's foreign trade orders for electric tools. This is undoubtedly a heavy blow to the Yongkang electric power tool industry. Many companies have stopped production or diverted, and the remaining companies are also experiencing difficulties. Days. In the face of difficulties, Yongkang electric tool industry has turned its attention to the vast domestic market, actively adjusted its marketing strategy, and positioned itself well for the domestic market. According to statistics, in the first half of this year, the sales volume of Yongkang electric tools reached 75.18 million units, an increase of 22% year-on-year, of which sales in the domestic market increased significantly.
With the fierce competition in the market, after-sales service has become an important factor to test the competitiveness of power tools companies. Products must not only meet the needs of users, but also provide convenient after-sales service. The interaction between production companies and dealers and customers becomes more and more. Important, the role is also growing. Research on the market, visits to wholesalers and key customers has become a key task for China's electric tool companies. Dealers have worked with companies to study the market and have increased their enthusiasm for distribution. The production companies learned about the sales of their products in the market, grasped the market's response to products and after-sales services, and also collected many constructive opinions and suggestions, which became an important basis for improving product design and developing new products.
Exploiting New Markets At present, the export situation of China's power tools is still severe. In order to restore the export market based on the domestic market, experts gave three suggestions.
The first is to conduct in-depth research and master the trade practices of European and American power tools. While stabilizing the share of China's power tools in the Western European and North American markets, it will actively explore new markets and achieve market diversification, with particular emphasis on exploring the African and Latin American markets. Eastern European market.
The second is to oppose low price competition and regulate the export market. Except for some foreign products, the prices of electric tools exported by China are relatively low. The main reason for this phenomenon is the low price competition between exporting companies. State-owned enterprises generally have better quality products, but they often lose in low-price competition due to higher costs. Some poor-quality or even poor ones use low-price competitive marketing methods to export in a row, causing adverse effects in the international market and damage. The image of Chinese products. Especially in the past two years, this phenomenon has been extended from the foreign trade market to the domestic market.
The third is to establish the concept of the buyer's market in the competition, and to realize the development of the company around the market, and the enterprise must turn from the production technology as the center to the marketing as the center.
Hong-Steel Co., Ltd. , http://www.qiyistainlesssteel.com