Analysis of current situation and development prospect of power tools industry

Economic globalization deepening, electric tool market development is very rapid, the Internet over the years a lot of traditional industry transformation of the business model, electric tool as a traditional industry is inevitable to accept the challenge of the Internet, many power tools companies embrace electric dealer market, attempt from the subversive influence of marketing mode.For now, the power tools industry, which has a huge market, has not been lucky enough to become a piece of fat in the e-commerce market.

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The transformation of power tools into e-commerce can be seen everywhere. In the early years, the establishment of self-owned brand e-commerce platforms began to be gradually abandoned due to the high cost of manpower and capital and the inability to achieve the expected flow. At present, they are mainly settled on third-party B2C e-commerce platforms, such as Tmall, jingdong, suning and amazon.The advantages brought by entering the e-commerce market lie in that power tools can change their production, operation, sales and other links through the Internet, so that small and medium-sized brand power tools enterprises can get more opportunities and take their future in their own hands.

According to the analysis, in recent years, electric tool industry present situation, development and sales of tie-in and convenient electricity mode, domestic electric tools firmly occupy the domestic market the main, as consumer awareness of the brand more and more high, abroad such as Bosch, Hitachi, Stanley electric tools such as brand, with the aid of electric business platform, slowly begin to “attack” on the domestic market.Although China is the world’s largest production base of hand tools, export tools are mainly OEM. Many well-known foreign brands purchase and label and sell back to the domestic market. Coupled with the non-standard market competition of domestic enterprises, export prices are getting lower and lower, so domestic brands are facing great challenges.

Current status of “electric shock” of power tools

1, although the electric tool industry scale expands unceasingly, but most of the enterprise competitiveness is weak in our country, on the technology at the lower levels of imitation stage, brand awareness is not strong, the more at a low price to get a small profit, also in the electricity business mode, competition more intense than the traditional channels, consumers through online shopping to buy the product, is more convenient and the price is low.As a result, e-commerce price wars occur almost every day, leading to low prices for domestic brands and high prices for foreign brands.

2, online distribution under the pressure of high cost, which leads to many traditional power tools companies are reluctant to contact electricity business development model, electric tools, species diversity, and the logistics cost is in the other products is relatively high, enterprises under the background of the price war, remove, artificial cost and expenses such as freight, storage, share profit by did not reach significant level.As a result, more companies are sitting on the sidelines.E-commerce is the general trend, unable to find a breakthrough point, may face the dilemma of being eliminated.

3, because our country electric power tool industry low barriers to entry, in independent innovation and product development, brand cultivation, investment is small, with independent intellectual property rights of the electric tools products in the international market awareness is not enough, the international marketing network also has not been set up, the domestic electric tools electric dealer market challenges by foreign brands, increasingly fierce competition, many enterprises pressure.

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What is the future of power tools?

1. As one of the common application tools, electric tools can be seen everywhere, such as electric drill, electric saw, cutting machine, Angle grinder, etc. They are widely used, including mechanical industry, building decoration, landscaping, wood processing, financial processing, etc., which play an indispensable role in social and economic development.As the largest developing country, China has been included in the category of advanced equipment manufacturing industry, with a huge market demand and a continuously improving prospect.

2, the idea of online shopping has been deeply rooted in the hearts of the people, electric tool with electricity sales model, will increase the liquidity of products, is no longer limited to the regional sales, enterprise brand awareness will increase at the same time, the launch of the third party platform, to have the capability of the “net” circulation enterprises to provide the access to the Internet rich resources, drive the industry development.

3. Benefiting from the breakthrough of lithium battery technology, power tools are gradually converted to clean energy power supply, and the battery capacity and safety of power tools are expected to be greatly improved, while the battery cost is continuously reduced.With the increase of penetration rate in the family, electric tools need to assume a variety of uses, the breakthrough of electronic control technology, intelligent tools into the home, the industry has great potential for development.

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Post time: Dec-30-2020