The Development of China Electric Tools Is Weak, Technology Breakthrough Becoming The Key
November.15.2010

In the information age of well-developed technology, technology is very important for the development of electric tools industry, so enterprises must be fully aware of this. With China's rapid development and comprehensive foreign communication, the electric tools industry also has rapid development in recent years, but it is still in a backward level when compared with foreign related power toolsenterprises. Professionals feel that technology is crucial for electric tools industry to develop rapidly. Coupled with the speciality of electric tools industry that it belongs to high-tech industry, enterprises must actively introduce relevant technology to enhance their strength.

Electric tools industry is advanced power tools equipment manufacturing, and to be serve for advanced manufacturing. Electric tools are widely used in aerospace, high-speed railway construction, shipbuilding, automotive industry and other advanced equipment manufacturing industry, as well as in road construction, decoration, wood processing, metal processing and other production fields.

According to the technical requirements and application fields of products, the global electric tool industry can be divided into three grades including industrial, professional and DIY home level. Among them, the electric tools products of industrial grade are mainly used in workplace that requires high requirements on technology accuracy and working environment protection, for example, the aerospace field, which has the characteristics of high technical requirements, high profits and small blow molding machine market scope; electric tools of DIY home level are mainly used in the place that the accuracy requirement is not high and continuous operation time is not long, such as home repairs and simple decoration and so on, which has the features of low air tools technical content and low profits.

Currently most of China electric tools manufacturers are producing DIY home level electric tools, their competition means for product sales is price, which shows a low-end and disorderly competition state. How ever, the professional-grade electric tools are far more than DIY-grade products no matter in technical content, application fields’ range, product added value or in product gross margin. The professional-grade electric tools feature high power, high rotating speed and long working life of motor, so they can continue to repeat the job for a long time, which also have the characteristics of high technological content, high profit margins, wide range of slitting machine market, high industrial threshold and high brand value.

Chinese domestic electric tools market is firmly controlled by some giant foreign brands all year round such as German Bosch, Japanese Makita, Japanese Hitachi, American Dewalt and so on. From the trend in recent years, the domestic market share of foreign brands is declining, the rise of Rui Qi Electric Tools are expanding market share continually, which can instead of imported brands. In the top four enterprises with high domestic market share, Rui Qi Stock is the youngest rising star, but it is a rookie that grow fastest, it's just only seven years from its establishment to now, moreover, it has already ranked the top four market share, and it also has the trend of catching up German Bosch and Japanese Makita that have nearly a hundred years history.

According to statistics, the capacity of China's garden tools market is rapidly growing with the growth rate of more than 25% every year, and it will reach 20.5 billion Yuan by 2012. In the feast of bag making machine industry development, Rui Qi stock will be able to firmly occupy the strategic industrial leading position in virtue of the capital market. On the other hand, after the financial crisis the international industrial structure also has some strategic adjustment, China's cip industrial acceptance and transformation has brought up opportunities for Rui Qi to do something in international market. In recent years, Rui Qi has been gradually trying to enter the international market with its own brand, and has made a good market response in the consumer groups of international plastic valve market. According to financial data that have been disclosed, the export sales of Rui Qi's own brand in 2010 has increased more than 2 times compared with the same period of last year. So the future performance of Rui Qi both in domestic and international market is worth looking forward to.

Taking a wide view of the status of domestic electric tools industry, pvc fitting enterprises which produce DIY home-level electric tools account for majority, but the professional products factories that can form product series are extremely rare, the industrial concentration is low and lacking leading enterprises. From the development trend, domestic brands must experience industrial reshuffle, and ultimately form an orderly situation that led and regulated by a small number of leading enterprises; the garden tools market share will also be re-allocated between domestic and foreign brands, domestic brands will continue to instead of foreign brands. Industry leaders will execute the industrial internal integration requirements. It can be expected that, as a unique listed company that specialize in electric tools, Rui Qi has the opportunity and ability to stand on the stage of the capital blow molding machine market, and promote the resource reorganization and pattern reconstruction of China electric tools industry.

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China Hardware Tool Processing Industry Has Become Main Force of The World's Hardware Industry
October.11.2010

With the acceleration of global economic integration, China hardware tool processing industry has become the main force of the world's hardware industry. The extensive applications and large demands of hardware tools go beyond imagination no matter in global tools market or Chinese tools market. The demands for hardware tools of some developed countries are increasing with the speed of more than ten percent every year. Hardware tool is a labor-intensive industry, as the hometown of hardware tools, Yong Kang City once became the gathering place of hardware tools with their traditional competitive advantage of low cost. Their products are not only sold well in domestic cities, but also exported to Europe, America, Africa, the Middle East and so on, moreover, they have consecutively hold fourteen China slitting machine Fairs in China Technology Hardware City. In recent years, under the influence of a series of unfavorable economic factors such as the rising of labor force cost, the increase of raw material price and the financial crisis, etc., a large number of manufacturers and dealers of Hardware City have increased the strength of research and development and sale on their own brands.

Two year ago, the export rebate rate of hardware tools decreased, the RMB appreciated rapidly, which had reduced the hardware tools profit margin. In the next place, the production of hardware tools is mainly affected by the price of raw materials. So the instability of steel market will also result in high sales risk on hardware tools. Hardware tools are low-profit products, and the market competition is fierce, therefore, it is impossible to raise cip prices uniformly. Some dealers said that to increase price individually is undoubtedly to hand over old customers. With the increasingly furious competition in hardware tools market, how to keep the Hardware City's sustainable development state has become an important problem for numerous dealers.

Relevant person analyses that when an industry entering the maturity stage after going through initial and developing stage, it often has entered a fine development stage. Hardware tools are more mature industry in Hardware City, if business operators want to develop in such environment they should find a way toward segment market. Hardware tool is a labor-intensive industry, China hardware tools account for a large share in international market with its advantages of raw materials price and low labor cost. The market competition of Yongkang City, which is the hometown of hardware pvc fitting, also is very fierce. In terms of foreign trade export, the situation of hardware tools is also not optimistic, in recent years it is gradually losing its original cost advantages under the impact of the raw materials price rising, the change of the plastic valve export tax rebate, the exchange rate increasing and some other disadvantages, the customer loss is serious. After visit reporters find that many dealers have started to develop toward segment market on the basis of introducing into well-known brands, the segmentation trend of hardware air tools sales is becoming increasingly obvious. From the big perspective, hardware tools can be divided into hand-power tools, pneumatic tools, combination tools, auto tools and craftsman tools. Hand-power tools include wrench, pliers, screwdrivers and so on. Pneumatic tools also cover assembly garden tools and cutting tools. The purpose of subdividing hardware tools is to make its market has pertinences. In a wide variety of hardware tools, the high-grade and fine combination blow molding machine and automotive vehicle tools are becoming people's new favorite.

After more than ten years development, now with a complete range of varieties and specifications and stable product quality, the hardware tools that operated by Hardware City are gradually forming serialization, standardization and brandization, moreover, some introduced famous high-quality products also have competitive power in international market. Many dealers also said, there is a long way to go for Hardware tools City's hardware power tools to take a firm stand in international market. As distributors, they should accelerate the research and development of new products, improve the backward technology, enhance the scientific technology content level of power tools products and increase the added value; to be based on local culture background, establish their own brands, construct effective information channel and fast-response decision mechanism, build well-deserved reputation, supply high quality products and excellent service for customers, and believe that the future of hardware tools will be better.

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Analysis on The Development Process of China Electric Tricycle
September.26.2010

The electric tricycle industry only has developed for a few years time in China, but in such short time it has achieved rapid development and significant progress from scratch and from scattered distribution to a wide range of popularization.

The year 2001 can be said as the initial stage of electric tricycle, as for enterprises that just entering the industry, they constantly groped and explored the road of electric tricycle development. During that stage, electric tricycle had emerged in domestic market; after all, it needs a transitional period for new things. At that time, the industrial electric bike clusters of electric tricycle industry had appeared in Jiangsu, Henan and other areas, which had laid a foundation for rapid development of electric tricycle.

After a few years development, the electric scooter broke out rapidly in 2005; the total sales volume also had obvious change. So the stage can be said the growing stage for electric scooters, and a large number of enterprises ascended into the electric tricycle industry at this stage. The electric tricycle industry, which is in the period of atv growing rapidly, not only benefit for consumers, but also upgrade continuously by using science and technology, new products also emerge in endlessly.

When enterprises become electric bike stronger and larger step by step, they will inevitably encounter problems and bottlenecks. For example, most fitness equipment components must be purchased from other places just because of little quantity enterprises, small single scale and not formed industrial chain; the technological content is low, the good and household items products are intermingled; the electric bike brand awareness is poor, the publicity is not enough and there is no uniform production standards; the funds shortage, deficient expansion pole capacity and some other problems all restrict the development of electric tricycle industry. However, the rapid development of electric tricycle industry has promoted related industries to advance side by side, the electric tricycle components manufacturers also spring up like mushrooms. In order to quickly achieve the concentration and development of electric bikes industry, and integrate production, supply and sale, motors, controllers, chargers, aluminum wheels, cars and car frames work together to build a platform for centralized management and marketing.

From the initial sales of 50 units to 2 million units in 2009, now the development of electric bike has entered blowout phase. It not only has drove the development of other related industries, but also solved the employment pressure. As a grass-roots origin, the year 2010 will surely be a brilliant year for electric tricycle, with the skyrunner growing awareness of people's environmental protection and the improvement of farmers' living standards, the development of electric tricycle industry can be in line with the electric bicycle industry and make a contribution to China's environmental protection!

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The China Strategy of Foreign Machine Tool Enterprises Suffering failure, But China's CNC Entering Into High-end
August 26, 2010

The top machine tool enterprises of developed countries, such as Japan and Germany, hold the world's most advanced packing machine tool manufacturing technology, but their orders decrease sharply. Why can not the best products be sold out? The China strategy of foreign slitting machine tool enterprises has been failed.

Some people think that it mainly because the foreign companies pay their attention to technical light market and European and American markets, but ignore the Chinese market, in addition their engineering machiney force cost is too high. In China's equipment manufacturers there is such a statement, the right is the best, that is to say although the import products are good, but the prices are too high, while the domestic products performance and quality are not as good as the former, but their prices are cheap and most suitable for Chinese users. To plastic valve extent it helps Chinese blow molding machine manufacturers to avoid the disadvantage of their own brands and technology and other aspects, and to seize most of the middle and low-end market. Foreign enterprises strategies are incompatible with China that is the reason lead to the strategy failure.

When the foreign enterprises strategy is failure, China's construction machiney tools go against the trend, and it plays a strong role and moves to the high-end gradually.

At present, the independent innovation of China high-end CNC machines tools is remarkable and the industrialization process is increasing. In the research and development of heavy and super heavy-duty CNC machine tools, the manufacturer of the heavy-duty five-axis gantry complex cip tools, the super heavy-duty CNC horizontal boring lathe and other high-end CNC machine tool which achieve the international advanced level is successful, and it has satisfied the machining requirements for large parts in aerospace, power generation equipment, automobiles and other important fields; the high-speed precision CNC lathes, machine centers and other products have widely used in many industry fields such as automotive, aerospace, electronics, war industry, and they have promoted many small pvc fitting and medium enterprises to renovate and reconstruct their equipment and upgrade the industry.

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Advantages and Limitations in China Heavy Machine Tool Manufacturers
August 23, 2010

In recent years, increasing the ability of providing key equipment for state key construction projects becomes more and more valued for heavy machine power tools manufacturers, and they have researched and developed a number of heavy equipments for major projects. Such as, CNC Vertical Milling Lathe, which has the independent intellectual property rights and the processing diameter is 28m; CNC Heavy Horizontal Type Lathe, with 5000mm turning diameter and 500t weight capacity; CNC Floor-type Milling Machine, its boring bar diameter is 320mm; Double Gantry CNC Milling Machine with 11m processing width has created a record of the largest processing specification in the world, it also has changed the situation that the key power tools used for China's important projects construction mainly rely on import which has spent a lot of foreign exchange and been controlled by others.

In order to meet the tools market demand, enterprises have increased the investment of technology transformation and established reliable technical support for large-scale processing equipments that needed for state key projects, and it has significantly shortened the air tools development and manufacturing cycle of new products. When enterprises transform their technology, they also have exercised their technology development team. The technology transformation project itself is numerical control product that can be supplied for customers.

It is worth noting that the economic and social development has great impact on the prospect of heavy machine garden tools market, and it also has some limitations that the range of the industry who need the products is quite narrow, the step is high, the national policies have a great influence on the garden tools market demand and the market response is relatively backward. The capital of investing heavy machine tool is relatively high and the payment cycle is long, and its long lifespan leads to long replacing cycle, which restrict the investment strength. Therefore, if China packing machine still doesn't regulate and guide the current investment boom of producing heavy blow molding machine tools, it will result in the industry imbalance, the business investment risk increasing and finally the follow-up crisis of industries and enterprises.

The demand of heavy machine tools users for ordinary and middle and lower class CNC machine tools will become flat, mainly is the addition of key equipment. To choose import blow molding machine products or domestic products is a competition to measure the technology level, which is not only a key opportunity for the development stage of China's heavy machine pvc fitting industry, but also a test for the capacity of grasping the opportunity, and more is a challenge for the manufacturing ability of China's heavy machine tool industry. The demand of high-end CNC heavy machine tools for the market is an indisputable fact, the key is whether the domestic slitting machine manufacturers can develop and manufacture high-end products to satisfy users. As for the heavy machine tools, we will not only make the largest specification in the world toward the utmost, but also improve the accuracy, reliability and technology and achieve results. The development trend of heavy machine tools and whether they can seize the domestic market lie in the key plastic valve equipment that satisfy the user demand, which is the heavy machine tool industry's most important thing and unshirkable historical responsibility during the Twelfth Five-Year Period.

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