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Branding of manual tools is the best time for Chinese manual tool companies

Update:30 Sep 2018
Summary:

In recent years, with the acceleration of the process o […]

In recent years, with the acceleration of the process of global economic integration, China's manual tool processing industry has gradually become the main force in the world hardware tool manufacturing industry. Whether in the global tool market or in the Chinese tool market, the wide range of applications and demand for hand tools is beyond imagination. In some developed countries, the demand for hand tools is increasing at a rate of more than 10% per year. According to the incomplete statistics of several large tool factories in Shandong Province, the production and sales volume in a year is tens of millions.

Most of the product categories produced by hand tool manufacturers in mainland China are fastening tool products, such as basic hand drills, impact wrenches and combination types, and these products have high growth potential.

We know that the production of hand tools is mainly influenced by the prices of raw materials such as steel. Most of the manual tools are meager profit products, and the market competition is fierce. It is impossible to raise the price uniformly. Individual price increases are undoubtedly equal to the old customers, and no one dares to risk losing the market. Under normal circumstances, the products sold to other industries require the manual tool industry to reduce the price by about 10% compared with the previous year. It can be seen that once the steel price rises sharply, it will directly affect the survival of manual tool manufacturers. At the same time, in addition to the company's own reasons, the product competitiveness of hand tools is determined by the quality of raw materials, that is, the quality of steel, and the use of some hand tools also has surface quality and internal cracking problems. The problem of steel smelting technology that cannot be ignored.

The main market for Chinese hand tool manufacturers is the overseas market. In particular, hand tool manufacturers in Fujian, Jiangsu, Shandong and Zhejiang are increasing their production capacity to fully cope with the expected increase in export sales, expanding overseas market coverage and achieving better margins through the production of mid-range and high-end products. Hand tool manufacturers are confident about the future, with more than 50% predicting that overseas market growth will exceed 10%.

In the past, China was mainly used as a production base for hand tools. With the rapid growth of the domestic economy, China has become the consumer market with the most potential hand tools. The industry believes that the mainland domestic market is no less than the European single market or the North American market, and the number of hand tools used is at least 400 million. Numerous manual tool manufacturers have entered the Chinese market.

Chinese consumers' information sources on hand tools are mainly concentrated in specialty stores, exhibitions, fairs, and salesmen. It is particularly worth mentioning that consumers do not know enough about brands when they first purchase. A large part of them are Know the brand and quality of hand tools after purchase and use. It can be said that the brand establishment of manual tools is the best time for Chinese manual tool enterprises.