The domestic brand electric tool market in China has always been firmly grasped by foreign brand giants such as Bosch from Germany, Livestock Farm from Japan, Hitachi from Japan, and Wuwei from the United States. Luo Ming pointed out that in recent years, the trend has been for foreign brands to experience a decline in domestic market share, while brand electric tools have risen, continuously expanding their market share and replacing imported brands. In the top four domestic market share, Richard is a young rising star, but it is a fast-growing newcomer. Our factory has a certain production capacity for seven years and has become the first fourth in the market share, following the trend of Bosch in Germany and livestock farms in Japan in recent years.
The electric tool industry actively introduces technology to promote its own strength. With China’s rapid development and comprehensive external exchanges, the electric tool industry has developed rapidly in recent years, but compared with related foreign enterprises, it may be at a backward level. Professional gaming experts believe that this technology is crucial for the rapid development of the power tool industry. The particularity of the electric tool industry is that it belongs to a high-tech industry, and enterprises must actively introduce relevant technologies to enhance their own strength.
The electric tool industry belongs to the advanced equipment manufacturing industry, enhancing advanced manufacturing in services. Brand electric tools are widely used in the construction of aerospace, high-speed rail, shipbuilding, automobiles, and other advanced equipment manufacturing industries, as well as in the production fields of road construction, decoration, wood processing, metal processing, etc.
The global power industry can be divided into three levels based on product technical requirements, application areas, etc.: technical level, professional level, and household level. Among them, industrial grade electric tool products are mainly used in workplaces with high processing accuracy or environmental protection requirements, such as the aerospace industry, with high technical requirements, higher profits, and a small market scope; DIY home grade electric tools are mainly used in situations where precision requirements are not high and continuous operation time is not long, such as home decoration, simple decoration, etc. They have the characteristics of low technical content and low profit. The household grade electric tool products produced by China’s large electric tool manufacturing enterprises are all in a low and disorderly competitive state, with product sales prices as the main means of competition.
Professional electric tools have a much higher gross profit margin than self-made products in terms of technical content, application scope, and value for money products. Professional grade electric tools have the characteristics of high power, high speed, long motor service life, ability to continue working repeatedly for a long time, high technical content, high profit, wide market scope, high industry threshold, and high brand value.
In general, in the domestic power tool industry, the majority of enterprises produce DIY household level power tool products, and professional level product factories that form product series are extremely rare. The industry concentration is low and there is a lack of leading enterprises. From the perspective of development trends, the industry reshuffle of domestic brand experience has formed some leading enterprises and a standardized and orderly situation; The market share will also be redistributed between domestic and foreign brands, with domestic brands constantly replacing foreign brands. The demand for internal integration of the industry will be celebrated by business leaders.
It can be foreseen that a listed company with only one main tool has the opportunity and ability to stand on the stage of the capital market, promoting resource restructuring and model reform in China’s electric tool industry. Consolidate the occupied market, further cultivate and explore new markets, and focus on the following aspects in the future: improving product quality and accelerating the development of new products. Special emphasis is placed on accelerating the development of battery powered and electronically controlled power tools, continuously improving the quality of power tools and products.
Improving product structure, enhancing comprehensive service capabilities, and strengthening as mentioned above, the market situation for branded electric tools is very good. However, the problem is that the domestic sales market for domestically produced electric tools has an imperfect structure. Electric tools are the standard for traditional high-speed electric tools and general level hard alloy tools.