Predicting the Future Trend of Hardware Tools from the Expo

On March 10th, the 17th China International Hardware Expo opened in Shanghai New International Expo Center. The exhibition was sponsored by the China Hardware Industry Chemical Industry Association, the China Building Decoration Association, the China Minmetals Chemicals Import and Export Chamber of Commerce, and the China Electric Appliance Industry Association Power Tools Branch.

Through the observation of this exhibition, as well as interviews with business experts, we found that hardware companies generally adopt two methods in the face of great changes in the market situation. One is a defensive and one is an offensive. After the cold wind raid in 2009, most of the companies have been fully prepared for 2010. The advent of the crisis has inspired the hardware industry's new planning for the development strategy in 2010.

For enterprises, 2009 can be either a reserve period or a hibernation period. Some companies have contracted their battle lines and saved their strength for the “winter”, and some excellent companies have also taken actions against the market and have taken inspiration to expand their sites. Regardless of how it is laid out, 2010 will be a critical period for corporate transformation.

Trend One: Combination Kits Are Popular

In this exhibition, most hardware and tool companies have launched their own new products - combination packages. More than 2,400 Chinese and foreign companies participated in the expo. The exhibition area reached more than 80,000 square meters. Exhibitors included Danaher in the US, YATO in Poland, Maeda Tools in Japan, Hitachi in Mitsubishi, Mitsubishi Crane, Kenipek in Germany and Dongcheng. , Rui Qi, Friends of the Great, Eagle of the India, Kellett speed, talent tools, Hummer, Zhuhai elephants, and many well-known domestic and foreign hardware companies. Some companies are even more stunning with a variety of products, including the most popular tools.

Trend 2: Take the road to branding

Hardware tools have embarked on the road of scale and branding. Many well-known brands at home and abroad such as Shida, KTC, Hans, and Sima have gathered in the domestic market. On the basis of the introduction of well-known brands, many business households have also begun to develop in the direction of market segmentation, and the trend of segmentation of hardware tools has become increasingly apparent. From a large perspective, hardware tools are divided into manual tools, pneumatic tools, auto maintenance tools, and farming tools. Hand tools are divided into wrenches, pliers, screwdrivers, and so on. Pneumatic tools are also classified into assembly pneumatic tools, cutting pneumatic tools and so on. The purpose of subdividing hardware tools is to make its market more targeted. Among the wide variety of hardware tools, upscale and sophisticated combination tools and car-on-wheel tools are gradually becoming the new darling of people.

Trend 3: Transferring to the secondary and tertiary markets

The industry believes that the primary market has become saturated, and both the consumer market and the company's business strategy have shown signs of gradual shifts to the secondary and tertiary markets. According to Gao Zhihua, deputy director of the China Metal Distribution Association, the tool industry is already in an embarrassing situation of oversupply, especially the primary market has basically been saturated. Some big brands rapidly expanded their market share, leading to the monopoly status of big brands for domestic first-tier cities.

The industry expects that with the increasingly fierce competition in the primary market, the third and fourth-tier markets with relatively more development potential will become the main domain for the competition among the tool companies. In 2010, many brands will compete in the second and third-tier cities. At the same time, in the face of a huge domestic market, many companies that originally focused on foreign markets have also turned to the country to prepare for a share. This is also a challenge for companies that originally focused on the domestic market.

Trend 4: Potential for renovation tools

As the companies engaged in "maintenance" services and standard services in the tool industry are almost zero, the contradiction between supply shortages is very prominent. In the depressed market, in 2008, Lea Tool pioneered the tool maintenance business and won a good reputation. At present, many tool companies have entered the tool repair market. Industry experts expect that tool repair services will activate the tool market and become a new driving force for the development of the tool industry. In 2010 and the next two years, the market for “tool repair” will soon be blowout. In the face of this tool maintenance project, most of the large-scale tool companies rejected the customer due to the construction triviality, and then there was an embarrassing situation of "difficult maintenance of the tool."

Trend 5: Industry reshuffle will continue

The cake is shrinking and the industry reshuffle will continue. In 2009, there has been a significant pressure on the tools market, and price cuts have gone higher than a wave. After the Spring Festival, the industry expects that some of the tool distributors will close down and withdraw, and in many regions there will be insufficient investment. Agents and brands have also seen signs of adjustment. For the Chinese tool market in 2010, it will be a year for industry adjustment.

Trend 6: The price war will continue

Compared with the equipment manufacturing industry and large heavy industry, the current consumer market for hardware tools is not mature enough. Objectively speaking, the most attractive factor for consumers is the price factor, but the quality of products and environmental protection, service, and performance factors are also In the gradual consideration of consumers as a comprehensive consideration. From an industry perspective, the price war next year should continue.

On the other hand, due to the impact of the international environment, the prices of raw materials for some tool products will decline, while the drop in logistics, rent, labor and other costs will also bring about some relief to the pressure on tool brand merchants. However, due to the lack of consumer confidence in the consumer market, product prices will become one of the sharp tools to stimulate consumption. Therefore, the cost reduction does not bring about a clear turnaround for the company.