Analysis of Current Situation of Hand Tool Industry in China

In the past, China mainly used hand tools as its production base. In recent years, with the rapid growth of the domestic economy, China has become the most promising consumer market for hand tools. The industry believes that the mainland domestic market is no less than the European single market or the North American market. The number of hand tools used is at least 400 million. Many hand tool manufacturers enter the Chinese market.

At the same time, China’s manual tools have begun to compete in the world market. The most frequently produced product categories of manufacturers are fastening tools, such as basic hand drills, impact wrenches, and combinational tools. The major markets are overseas markets. Hand tool makers in Fujian, Jiangsu, Shandong and Zhejiang are increasing their production capacity to fully cope with the expected increase in export sales, through the production of mid-range, high-end products to expand overseas market coverage and obtain better margins.

The manual tools are mostly meager products, and the production is mainly affected by the prices of steel and other raw materials. In addition, the market competition is fierce and uniform price increases are impossible. Individual price increases are undoubtedly equal to the old customers and no one dares to risk losing the market. Under normal circumstances, the products are sold to other industries, require the manual tool industry to reduce prices by about 10% from the previous year, it can be seen that once the steel prices rise sharply, it will directly affect the survival of manual tool manufacturers. At the same time, the manual tool product competition In addition to the reasons of the enterprise itself, there are a lot of factors that are determined by the quality of the raw materials, that is, the quality of steel. At present, the use of steel in some hand tools still has problems with surface quality and internal cracking. This is a steel smelting technology that cannot be ignored. The problem.

China’s consumer sources of manual tools mainly focus on specialty stores, exhibitions, trade fairs, salesperson sales, and it is worth mentioning that consumers’ perceptions of brands are insufficient at the time of initial purchase. Only after purchase and use do you understand the brand and quality of manual tools. It can be said that the branding of manual tools is the best time for Chinese manual tool companies.

Looking at the international tool companies, the gap between Chinese tool companies is obvious.

In terms of scale, foreign companies are large in scale. For example, the United States Schneider Electric is one of the top 500 companies. Its products include hand tools and power tools, automotive diagnostic and repair equipment, diagnostic technology and related products. Automobiles, aviation and other commercial fields. China's tool companies are mostly small in size, and their product lines are not rich enough. Typical "more than not strong."

From the strategic planning point of view, the products of world-class companies often give people a very clear impression. Our tool companies have excessive competition, many domestic manufacturers and brands are not prominent in their main business, and their core competitiveness is poor.

From the brand point of view, foreign tool companies have become internationally renowned multinational companies, and most of China’s tool companies are silent in the international market. Technically speaking, we have a wide gap with multinational companies. There are design capabilities and processing methods, with advanced design reserves, and our technology is seriously lacking.

From a talent point of view, many foreign companies have come to China to produce. They are paying more attention to the Chinese market. In order to gain a deeper understanding of the Chinese market, foreign manufacturers hire highly-qualified Chinese local talent and are willing to pay for information. Chinese tool companies expand overseas markets. To go out, but the lack of transnational elites and people with rich trading experience.

From the service perspective, foreign manufacturers take the laws of the host country as the yardstick, and the service is very standard. Most of the domestic companies' after-sales services are not in place or basically have no after-sales service.

Of course, domestic companies also have their own advantages, such as having a high level of familiarity with the market and having a better understanding of the local cultural background, so it is more likely to establish their own brand. As long as effective information channels and rapid-response decision-making mechanisms are established, Good reputation, to provide users with quality products and perfect services, China's handmade manufacturing companies can also open up a new world.