Power Tool Industry Concern The Overall Situation
The past 20 years, China’s power tool industry products are produced annually, 85% -90% for exports and only 10% -15% for domestic use.
“2009 was already more than half, however, the overall situation of China’s power tool industry is very worrying, it can be said in the past 20 years the most difficult time.” Recently, the China Electrical Equipment Industrial Association, Chuan-fu Power Tools Chapter Secretary-General told reporters. “Special is export oriented, and because they relied on OEM based enterprises, production and management situation even worse, dropping by 30% in general to 35%, there are many even dropped 50%. A number of small businesses are unsustainable, has ceased to operate. ”
Serious disruption to exports
In the first half of our domestic power tool market demand, a quarter of the upgrade, power tools, production also increased.
Start City of Jiangsu Association of the Secretary-General Huang Rong power tools told reporters, mainly in the area mainly domestic, so by the financial crisis relatively small, with annual sales last year of 500 million yuan or more enterprises have withstood the financial crisis the impact of business sales during the first half of this year and last year’s flat in the second half much better.
Although the first half of the domestic power tools marketing situation is relatively stable, but the industry remains a huge risk, foreign trade, the main strong point as the industry’s economic performance declined significantly.
ZHANG Chuan-fu said, the past 20 years, China’s annual electric tool industry products, there are 85% ¯ 90% for export, only 10% ¯ 15% for domestic use. Serious disruption in exports this year, situation, production and operation of the whole industry can not be good.
According to statistics, trade associations, electric tool industry of our country’s foreign trade export volume and value both declined in the first quarter decline of both are large compared with the previous year, exports declined by 25%, the rates of decline in export 16%, a decrease of nearly 20 years one of the biggest time. Although starting from April, the industry’s exports slightly better, but still can not say that the industry’s exports have fallen to the bottom. Concerned that the end of this year, China can export power tools bottom out, remains to be further observed, the current uncertain because many factors are still not clear.
The first half of this year, China’s exports decline in power tools, mainly in Europe and North America, Asia, the three leading markets, especially in Europe. In Europe, especially Russia, the first quarter of this year, China electric tools sharp drop in import demand, the market was down. Australia also is the case, because some of the power tool importer of capital chain is broken Erzao bankruptcy, the first half of our exports to the Australian region the number and amount of power tools also declined substantially.
Signs have been warmer
But there are signs that exports the power tool has been improved, this 5,6 months of this year confirmed the actual operation.
Reporter from Jiangsu, Zhejiang and other areas more concentrated corporate power tool cities and counties understand that the recent power tool companies export most of the increase in production tasks, “Order in the growing gradually.” A number of enterprises, whether in Europe or North America, nearly two months, the demand for power tools in China is gradually growing. Especially Russia and Eastern Europe.
Industry to reflect the first quarter of this year, Russia and Eastern Europe, the demand for power tools in China fell to historic lows. This past year has created a great contrast. It is understood that starting from May, this “cold market” situation has changed, Russia and other East European countries have begun purchasing power tools in the electric tool business to our orders, although these orders than in the past so much. In the case of a bad economic situation, to great customer orders, orders for long-term expectation is probably more difficult, and all the power tools exporters should adapt to the “short order”, “small order” of the new situation.
Concerned parties, entered in June, a number of power tools manufacturing companies appear to be growing.
Open up the domestic market
The first 6 months of this year, China’s power tools industry exports blocked because of many enterprises pay more attention to the domestic market. Many of them small businesses.
ZHANG Chuan-fu said, some companies produce low-quality low-cost products in the past, now have to sell their products to the domestic market, the risk of large imagine.
The real strength of the foreign trade enterprises to domestic market, has achieved good results. These enterprises is basically a high end production of export products foreign trade enterprises.
Meanwhile, some companies have realized that the wedding dress can not always do for others, must depend on “innovation” in order to gradually build up their own brand. For example, Boss may Machinery (China) Co., Ltd. introduced its own brand in the European product??? “Wei Keshi” professional power tools, has been accepted by the market. Two years ago, the brand began to appear in China’s domestic market, National Hardware Fair in the display upon immediately by the user’s attention and favor.
The domestic market several leading brand, the first half of this year show a good sales momentum. KEN Tools Co., Ltd. Shanghai, Zhejiang Boda Electric Appliance Co., Ltd., Iron? Power Tools Co., Ltd., which have better performance.
According to Huang Rong introduction, Jiangsu Dong Cheng Electric Tools Co., Ltd. is “buck the trend and on the” more difficult aspects in this situation, the home to domestic-based companies rely on brand power tools and quality to win.
Some enterprises have also increased research and development of new products into other product areas to explore. It is understood, Jiangsu, Zhejiang and in the vicinity of power tools exporters, have to go out to do market research to understand market demand and new products, improvements in this business for R & D of new products and improving old products for reference. Several power tools in Ningbo enterprises, to strengthen existing export products, but also attach importance to the development of new products, if any, companies in the past only the production of desktop tools, and now, in the promotion and support units, is developing a hand-held type, rechargeable power tools, and has achieved results.
In addition, during the first half of this year, foreign-brand power tool companies, such as Black & Decker (Suzhou) Technology Co., Ltd., Bosch Power Tools (China) Co., Ltd., Makita (China) Co., Ltd., etc., while also encountered unprecedented difficulties, production and management situation as before, but in general, the situation of these foreign-funded enterprises better than many domestic enterprises.
The reason is mainly that these companies have their own brand products. The internationally renowned brand synonymous with not only high-end products, it is the mainstream of economic benefits flow to lie. This is worthy of the domestic electric tool business to learn from.
I am an expert from Frbiz Site, usually analyzes all kind of industries situation, such as poly disposable gloves , food waste disposers.
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