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 enterprises. 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 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 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 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 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 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 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 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 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 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, 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 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 market, and promote the resource reorganization and pattern reconstruction of China electric tools industry.
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