Exports are seriously blocked
In the first half of 2009, 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 this year. The sales volume of the company in the first half of the year was 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 was relatively stable, the industry still had huge risks, and the performance of foreign trade as the main support point of the industry economy declined significantly.
Zhang Chuanfu said that in the past 20 years, China's power tool industry produces products every year, with 85% to 90% for foreign trade, and only 10% to 15% for domestic use. Under the situation that foreign trade exports are seriously hampered this year, production and operation in the whole industry is unlikely to be good.
According to statistics from industry associations, the amount of foreign trade exports of China's power tools industry declined in the first half of this year. In the first quarter, the declines were both large compared with the same period of the previous year. The export volume decreased by 25% and the export value decreased by 16%. It 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 power tools will bottom out, it remains to be seen. At present, due to more uncertain factors, it is still not clear.
In the first half of 2009, China's export of power tools declined, mainly 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 imports fell sharply in the first quarter of this year, and the market was very sluggish. The same is true in Australia. Due to the bankruptcy 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 power tools has gradually improved, which is confirmed by the actual operation in May and June this year.
From the comparison of the power tools enterprises in Jiangsu, Zhejiang and other regions, the county and the city have learned that the production tasks of most foreign trade export power tools companies have increased recently, and “orders have gradually increasedâ€. Some companies have reported that both Europe and North America have seen a gradual increase in demand for power tools in China 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 in sharp contrast to previous years. It is understood that since May, this "cold field" situation has changed. Power tools 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 for 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 ordersâ€.
According to relevant sources, since the beginning of June, the production volume of some power tool companies seems to have increased.
Opening up the domestic market
In the first six months of 2009, 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 want 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 basically produce foreign trade enterprises with higher-end export products.
At the same time, some enterprises have realized that they can't make wedding dresses for others, and they must rely on “creation†to gradually build their own brands. For example, Bao Shide Machinery (National) Co., Ltd. has launched its own branded product, "Wicks" professional power tools, which has been recognized by the market. The year before, the brand began to appear in China's domestic market. Once exhibited at the National Hardware Expo, it was immediately followed by 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 trendâ€. Under the difficult situation in all aspects this year, this domestically-oriented power tool company relies on brand quality to win.
Some companies have also increased their research and development of new products into other product areas. It is understood that the power tool export enterprises in Jiangsu and Zhejiang have gone out to do market research, understand the new market demand for the improvement of the company's products, for enterprises to develop new products and improve old products for reference. On the one hand, several electric tool enterprises in Ningbo have consolidate their original export products, and at the same time, they also attach importance to the development of new products. If there are enterprises, they used to produce only desktop tools. Now, with the promotion and support of relevant units, the development of handheld and rechargeable electric motors is underway. Tools and have achieved results.
In addition, in the first half of 2009, foreign brands of power tool companies, such as Black & Decker (Suzhou) Technology Co., Ltd., Bosch Power Tools (State) Co., Ltd., Makita (Country) Co., Ltd., etc., although they have encountered unprecedented difficulties, production and operation situation Not as good as before, but on the whole, these foreign-invested companies are better than many domestic companies.
The reason is that these companies mainly have their own brand products. These internationally renowned brands are not only synonymous with high-end products, but also the main stream of economic benefits. This point is worth learning from domestic power tool companies.
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