Electric tools need to be based on the domestic market to open up new markets overseas

In recent years, not only the slow recovery of the global economy and the lack of purchasing power in the market, but also the unfavorable factors that have plagued China's power tool industry still exist and have even greater impact. First, the prices of steel (including silicon steel), copper (copper and other copper products), aluminum alloys, magnesium alloys, engineering plastics, and other raw materials have risen sharply, and the cost of production has continued to climb. The second is the continuous appreciation of ***, and the impact on the export of electric tools is even more pronounced. Although many companies have made appropriate price increases in response to the appreciation of ***, they have not been able to keep up with the appreciation rate of ***. The third is the shortage of funds. Fourth, the labor costs have risen sharply.

In the face of cruel reality, China's power tool companies must shift their sales focus from exports to the domestic market.

Ms. Zhao, the head of a power tool company in China Science and Technology Hardware City, which is located in Yongkang, Zhejiang, and the author talked about the market conditions of power tools in the recent period, said that at present, their power tools are mainly domestic sales, and the sales situation is still good.

It is understood that in the China Science & Technology Hardware City, more and more electric tool sellers are making efforts to sell in the domestic market. Some of them advertise to increase their popularity, others frequently participate in various exhibition activities, and some of them play the “Laoxiang” brand. Competition has become more intense.

As one of the eight pillar industries of Zhejiang Yongkang, the power tool has always been characterized by export-oriented features. Foreign trade exports are a major support for the survival and development of the Yongkang power tool industry. With cost advantages, Yongkang electric tool industry occupies a large market share in the international market. However, the rise in raw materials, the appreciation of ***, and the sluggish foreign market led to a sharp contraction of Yongkang's foreign trade orders for electric tools. This is undoubtedly a heavy blow to the Yongkang electric power tool industry. Many companies have stopped production or diverted, and the remaining companies are also experiencing difficulties. Days. In the face of difficulties, Yongkang electric tool industry has turned its attention to the vast domestic market, actively adjusted its marketing strategy, and positioned itself well for the domestic market. According to statistics, in the first half of this year, the sales volume of Yongkang electric tools reached 75.18 million units, an increase of 22% year-on-year, of which sales in the domestic market increased significantly.

With the fierce competition in the market, after-sales service has become an important factor to test the competitiveness of power tools companies. Products must not only meet the needs of users, but also provide convenient after-sales service. The interaction between production companies and dealers and customers becomes more and more. Important, the role is also growing. Research on the market, visits to wholesalers and key customers has become a key task for China's electric tool companies. Dealers have worked with companies to study the market and have increased their enthusiasm for distribution. The production companies learned about the sales of their products in the market, grasped the market's response to products and after-sales services, and also collected many constructive opinions and suggestions, which became an important basis for improving product design and developing new products.

Exploiting New Markets At present, the export situation of China's power tools is still severe. In order to restore the export market based on the domestic market, experts gave three suggestions.

The first is to conduct in-depth research and master the trade practices of European and American power tools. While stabilizing the share of China's power tools in the Western European and North American markets, it will actively explore new markets and achieve market diversification, with particular emphasis on exploring the African and Latin American markets. Eastern European market.

The second is to oppose low price competition and regulate the export market. Except for some foreign products, the prices of electric tools exported by China are relatively low. The main reason for this phenomenon is the low price competition between exporting companies. State-owned enterprises generally have better quality products, but they often lose in low-price competition due to higher costs. Some poor-quality or even poor ones use low-price competitive marketing methods to export in a row, causing adverse effects in the international market and damage. The image of Chinese products. Especially in the past two years, this phenomenon has been extended from the foreign trade market to the domestic market.

The third is to establish the concept of the buyer's market in the competition, and to realize the development of the company around the market, and the enterprise must turn from the production technology as the center to the marketing as the center.