Exports fell sharply and fell sharply on the power tool industry

In the past 20 years, 85%~90% of the products produced by China's electric tool industry are exported to foreign countries, and only 10%~15% are for domestic use.

"The time has passed in 2009, but the overall situation of China's power tool industry is very worrying. It can be said that it is in the most difficult time in the past 20 years." Recently, Zhang Chuanfu, secretary general of the Power Tools Branch of China Electrical Equipment Industry Association, told reporters. “Especially based on foreign trade, and relying on OEM production, the production and operation situation is even worse, the decline rate is generally 30% to 35%, and many have even dropped by 50%. Some small enterprises , it is difficult to continue, is in a state of suspension."

Export is seriously blocked
In the first half of this year, China's domestic power tool market demand increased in the first quarter, and the output of power tools also increased.
Huang Rong, secretary general of Jiangsu Power Tools Association, told reporters that because the region is mainly domestic sales, it is relatively less affected by the financial crisis. Enterprises with annual sales of more than 5 million yuan have withstood the financial crisis since last year. The impact of the company's sales in the first half of this year is the same as last year, and the second half may be better.
Although the marketing situation of domestic power tools in the first half of the year is still relatively stable, the industry still has huge risks. The performance of foreign trade as the main support point of the industry economy has declined significantly.
Zhang Chuanfu said that in the past 20 years, 85%~90% of the products produced by China's electric tool industry are exported to foreign countries, and only 10%~15% are for domestic use. Under the situation that this year's foreign trade exports are seriously blocked, the production and operation of the whole industry is unlikely to be good.
According to statistics from industry associations, the volume and amount of foreign trade exports of China's power tools industry both declined in the first half of this year. The decline in both of them in the first quarter was large compared with the same period of the previous year. The export volume decreased by 25% and the export value decreased. 16% has become the largest period of decline in the past 20 years. Although, since April, the industry's foreign trade exports have improved slightly, but it still cannot be said that the industry's foreign trade exports have fallen to the bottom. Relevant people believe that at the end of this year, whether China's export of electric tools can bottom out, remains to be seen. At present, due to more uncertain factors, it is still not clear.
In the first half of this year, the decline in China's export of power tools was mainly reflected in the three leading markets of Europe, North America and Asia, especially in Europe. In Europe, especially Russia, the demand for China's power tools in the first quarter of this year has fallen sharply, and the market is very depressed. The same is true in Australia. Due to the breakdown of the capital chain of some power tool importers, the number and amount of power tools exported to Australia in the first half of the year have also fallen sharply.

There are signs of recovery
However, there are already signs that the export of electric tools is gradually improving, which is confirmed by the actual operation in May and June this year.
The reporter learned from the counties and cities where power tools companies in Jiangsu and Zhejiang are concentrated. Recently, most of the export-oriented power tool enterprises have increased their production tasks, and “orders are gradually increasing”. Some companies report that, in Europe and North America, the demand for power tools in China has gradually increased in the past two months. Especially in Eastern Europe such as Russia.
Industry sources report that in the first quarter of this year, Russia and Eastern Europe, the demand for power tools in China fell to an all-time low. This situation is a big contrast to previous years. It is understood that since May, this "cold field" situation has changed. Power tool buyers in Russia and other Eastern European countries have begun to place orders for power tools companies in China, even though these orders are not as big as before. In the case of a bad economic situation, it may be difficult to expect customers to place large orders and long-term orders. All relevant exporters of power tools should adapt to the new situation of “short orders” and “small orders”.
According to relevant sources, since June, the production volume of some power tool companies seems to be increasing.

Opening up the domestic market
In the first six months of this year, China's power tool industry was blocked by foreign trade exports, and many companies are paying more attention to the domestic market. There are some small businesses.
Zhang Chuanfu said that some companies used to produce low-quality and low-priced products, but now they have to sell their products to the domestic market. The risks are as large as they can be imagined.
The truly powerful foreign trade export enterprises have turned to the domestic market and have indeed achieved good results. Such enterprises are basically foreign trade enterprises that produce higher-end export products.
At the same time, some companies have realized that they can't always make wedding dresses for others, and they must rely on “creation” to gradually build their own brands. For example, the “Wicks” professional power tools launched by Baoshide Machinery (China) Co., Ltd. in Europe have been recognized by the market. The year before, the brand began to appear in China's domestic market. It was exhibited at the National Hardware Expo and immediately received the attention and favor of users.
Several major brands in the domestic market showed a good sales momentum in the first half of this year. Shanghai Ruiqi Tools Co., Ltd., Zhejiang Boda Electric Co., Ltd., and Iron Power Tools Co., Ltd. all have good performance.
According to Huang Rong, Jiangsu Dongcheng Power Tools Co., Ltd. is “contrary to the trend”. Under the difficult situation in all aspects this year, this domestically-oriented power tool company wins by brand and quality.
Some companies have also increased the research and development of new products and explored into other product areas. It is understood that the power tool export enterprises in the Jiangsu and Zhejiang provinces have gone out to do market research, understand the new market demand and the improvement opinions of the company's products, and provide reference for enterprises to develop new products and improve old products. On the one hand, several power tool companies in Ningbo have consolidated their original export products and also attached importance to the development of new products. For example, some companies have only produced desktop tools in the past. Now, with the promotion and support of relevant units, they are developing handheld devices. , rechargeable power tools, and have achieved results.
In addition, in the first half of this year, foreign-branded power tool companies, such as Black & Decker (Suzhou) Technology Co., Ltd., Bosch Power Tools (China) Co., Ltd., Makita (China) Co., Ltd., etc., have encountered unprecedented difficulties in production and operation. Not as good as before, but overall, the status of these foreign-funded enterprises is worse than many domestic companies.
The reason is mainly because these companies have their own brand products. These internationally renowned brands are not only synonymous with high-end products, but also the mainstream flow of economic benefits. This point is worth learning from domestic power tool companies.

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