Electric Hardware Tools Industry Development Trend

Electric tools are the most widely used hardware tools in the society. Because of their light weight, portable use, high production efficiency, and low energy consumption, power tools have become an indispensable tool in the family life. With the globalization of the economy, the power tool market has been developing rapidly. In recent years, the power tool industry has experienced rapid development. In the domestic power tool market, domestic sales of power tools have accounted for 90% of total sales, while various imported brand products only account for 10% of the market. In the foreign power tool market, the proportion of manufacturing in China continues to expand, and China has become the world's leading exporter of power tools and global power tool production bases. The industry has great potential for development.

China's high-tech, functional and demanding industrial power tools still have a large potential market in Europe and the United States. Currently, industrial countries in economically developed regions, such as Germany, the United Kingdom, the Netherlands, and France in the European region, the United States and Canada in the North American region, and Japan and other countries in the Asian region, use electric tools in homework and are common, accounting for the total output. About 50% to 70% of China's electric power tool products have a large share in the domestic electric tool product market in the above-mentioned countries and regions, but the industrial electric power tools produced in China do not export a large amount to these regions. Professional power tools for industrial use have high technical content, strict safety and electromagnetic compatibility requirements, and have delineation of function, work efficiency, reliability, and durability. The price is several times that of similar DIY tools, and even 10 times or more. Professional power tools have internationally known brands such as hammers from Helde, Bosch, and Mai Taibao, drills from Black & Decker, electric tools from Makita and other woodworking tools, and circular saws from the Century.

China's export of electric tools has accounted for 85% of the world's sales of electric tools, but the export amount only accounts for about 40% of total sales. The main reason is that China's electric tool manufacturing industry has not yet established its own brand in the international market, especially the industry. With professional electric tools, the use of OEMs is generally adopted. Coupled with the non-standard market competition of domestic companies, export prices are getting lower and lower. For example, in 2001, the uniform price of electric tools was US$12.72 per unit, while the average price of foreign-funded enterprises was US$18.74 per unit, and the average price of imported electric tools was US$45.94 per unit. Therefore, after improving our product technology level and developing industrial power tool products, our country will be able to expand the market and create greater economic benefits after it is established from an internationally renowned brand.

Developing countries and economically underdeveloped countries are the potential target markets for domestic DIY power tools. Electric tools are relatively rare in the economically underdeveloped or relatively backward third-world countries. With the development of the economy and the improvement of the material and cultural level, household daily-use power tools will gradually increase. For example, in the Asian region, the market share of electric tools sold by China to Asian countries has been increasing year by year. Compared with 2002, it has increased by 2.6 percentage points. Therefore, the latent market for household electric tools in developing countries and economically underdeveloped countries is very large.

China's power tool market is maturing, brand awareness and brand effect will be highlighted. In the next few years, the share of domestic electric tools will further increase. With the constant increase in demand for electric tools, the production and operation of relevant companies in China will be promoted in a favorable direction. The industry outlook is expected to be promising.

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

1. Compared with the high level in the international market, the production technology and management level of our country's power tools are low, and the products have a single function. In order to become bigger and stronger in the international market competition, it is not necessary to expand the market share in the high-end market. The competitiveness of the international market for products needs to be further improved.

2. Due to the low barriers to entry in the electric tool industry in China, investment in independent innovation, product research and development, brand cultivation, etc. is relatively small. The recognition of electric 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 capabilities and brand awareness must be further strengthened.

3. The foreign trade export is facing a severe situation. The main raw materials for the production of electric tools such as steel (including silicon steel sheet), copper (enameled wire and other copper products), aluminum alloys, magnesium alloys, engineering plastics, etc., have high prices, making the production cost of electric tools Continue to climb and directly affect the export efficiency of products. With the application of industrial ceramics, high-performance soft magnets, and new plastic materials in new products, it is expected that the application of low-carbon, environmentally friendly new materials will increase in the future.

4, the continuous appreciation of the ***, a certain impact on the export of electric tools, China's electric tool industry to achieve new achievements in foreign trade exports, there are still many difficulties to be overcome.

5. The status of China’s export of power tools is increasingly being challenged by developing countries. The level of technology and management in developing countries has been greatly improved, and the labor and raw material costs are low. This has brought great power to China's power tool industry. With great competitive pressure, international competition has become increasingly fierce.

6. The international and domestic markets are more discerning about the quality and brand of electric tools. Whether they are distributors of electric tools or direct users, they attach great importance to the quality and brand of electric tools. Therefore, the inclination of the market for good quality, good brand electric tools has increased. This is a progress, indicating that the power tool market is maturing. Because of this, the brand awareness and brand effect of the domestic power tool market have become more prominent, and many power tool distributors, especially power tool distributors with a certain strength and scale, have shown high enthusiasm for the distribution of brand power tools. .