How to Accelerate the Development of Emerging Markets for Hardware and Electric Tools
Release time:
2018-07-14
The domestic brand electric tool market in China is always firmly grasped by foreign brand giants such as Bosch in Germany, Livestock Farm in Japan, Hitachi in Japan, and the United States.
The domestic brand electric tool market in China is always firmly grasped by foreign brand giants such as Bosch in Germany, Livestock Farm in Japan, Hitachi in Japan, and the United States. Luo Ming pointed out that in recent years, the trend has been a decline in the domestic market share of foreign brands, an increase in brand electric tools, and a continuous expansion of market share to replace 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 had a certain production capacity since seven years and has become the first four in the market share, following the trend of Bosch in Germany and Japanese livestock farms in recent years.
The electric tool industry actively introduces technology to promote its own strength, China's rapid development, and comprehensive foreign exchanges. In recent years, the electric tool industry has developed rapidly, but compared to foreign related enterprises, it may be at a backward level. Professional GameHui believes that this technology is crucial for the rapid development of the electric 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 and enhances advanced manufacturing in services. Brand electric tools are widely used in aerospace, high-speed rail construction, shipbuilding, automotive, and other advanced equipment manufacturing industries, as well as in the construction of roads, decoration, wood processing, metal processing and other production fields.
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 field, which has the characteristics of high technical requirements, higher profits, and small market scope; Self made first level household electric tools are mainly used in situations with low precision requirements and short continuous operation time, 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 major Chinese electric tool manufacturers are 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-added products. Professional level electric tools have the characteristics of high power, high speed, long motor service life, can continue to work repeatedly for a long time, high technical content, high profit, wide market range, high industry threshold, and high brand value.
In general, in the domestic electric tool industry, the majority of enterprises produce handmade household level electric tool products. Professional level product factories that form product series are extremely rare, with low industry concentration and a lack of leading enterprises. From the perspective of development trends, the industry reshuffle of domestic brand experience has formed some leading enterprises and standardized and orderly situations; Market share will also be redistributed between domestic and foreign brands, with domestic brands continuously replacing foreign brands. The demand for internal integration in the industry will be celebrated by enterprise leaders.
It can be foreseen that a listed company with only one main tool will have the opportunity and ability to stand on stage in the capital market, promoting resource restructuring and model reform in China's electric tool industry. Consolidate the already occupied market, further cultivate and explore new markets. Conghui suggests focusing 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 power tools and electronic control power tools, and continuously improving the quality of power tools and products.
Improving product structure, comprehensive service capabilities, and strengthening as mentioned above, the market situation for branded electric tools is good. However, the problem is that in the domestic sales market where the structure of domestic electric tools is not perfect, electric tools are not up to the standard for traditional high-speed electric tools and general level hard alloy tools.
The electric tool industry actively introduces technology to promote its own strength, China's rapid development, and comprehensive foreign exchanges. In recent years, the electric tool industry has developed rapidly, but compared to foreign related enterprises, it may be at a backward level. Professional GameHui believes that this technology is crucial for the rapid development of the electric 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 and enhances advanced manufacturing in services. Brand electric tools are widely used in aerospace, high-speed rail construction, shipbuilding, automotive, and other advanced equipment manufacturing industries, as well as in the construction of roads, decoration, wood processing, metal processing and other production fields.
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 field, which has the characteristics of high technical requirements, higher profits, and small market scope; Self made first level household electric tools are mainly used in situations with low precision requirements and short continuous operation time, 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 major Chinese electric tool manufacturers are 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-added products. Professional level electric tools have the characteristics of high power, high speed, long motor service life, can continue to work repeatedly for a long time, high technical content, high profit, wide market range, high industry threshold, and high brand value.
In general, in the domestic electric tool industry, the majority of enterprises produce handmade household level electric tool products. Professional level product factories that form product series are extremely rare, with low industry concentration and a lack of leading enterprises. From the perspective of development trends, the industry reshuffle of domestic brand experience has formed some leading enterprises and standardized and orderly situations; Market share will also be redistributed between domestic and foreign brands, with domestic brands continuously replacing foreign brands. The demand for internal integration in the industry will be celebrated by enterprise leaders.
It can be foreseen that a listed company with only one main tool will have the opportunity and ability to stand on stage in the capital market, promoting resource restructuring and model reform in China's electric tool industry. Consolidate the already occupied market, further cultivate and explore new markets. Conghui suggests focusing 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 power tools and electronic control power tools, and continuously improving the quality of power tools and products.
Improving product structure, comprehensive service capabilities, and strengthening as mentioned above, the market situation for branded electric tools is good. However, the problem is that in the domestic sales market where the structure of domestic electric tools is not perfect, electric tools are not up to the standard for traditional high-speed electric tools and general level hard alloy tools.
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