Today, the tool industry is in an accelerated transformation stage, the tool market is in a stable development stage, and tool companies are in a stage of transformation and upgrading.
Tool industry: Accelerating the transformation from communication to lithium batteries, accelerating the transformation from electric to intelligence, and accelerating the transformation from tradition to modernity.
Tool market: Countries are competing to localize their manufacturing industries, the industrial chain is reshaped, and the military industry is active, which will increase the demand for tool products.
Tool companies: Product upgrades, design upgrades, expansion from industrial products to household consumer goods, transformation from factory to market, and transformation from OEM to brand will all become opportunities for enterprises.
Positive and negative choices
Today, most companies are confused and at a loss about the market prospects, forcing them to invest more in sales and explore more markets. Everyone has become relatively cautious and negative. In fact, there is no need to do so. Think about the financial crisis in 2008. After that, many industries ushered in major development opportunities. Especially for mobile phones, just after the financial crisis, Apple launched IPONE 4 in 2010, which subverted the entire mobile phone industry. From candybar mobile phones to smart phones, the market size has expanded exponentially, including mobile phone prices, product peripherals, mobile phone cases, mobile phone films, and mobile phone screens. , applications and more.
Today’s market is not as bad as in 2008, but it lasts longer than 2008. This is where people are worried and confused. But no one sees how big of an opportunity the tool industry will usher in in the future. What is certain is that this opportunity is no less than that of mobile phones. The market size will also increase geometrically, with horizontal expansion of product prices, consumables and products, demand for chips and lithium batteries, as well as demand for Internet talents and technology talents, etc.
What tool companies need most is a positive attitude and long-term planning. This is a multiple-choice question, “Choosing to invent an airplane or a parachute determines the fate of the company, and seeing the sun or the moon determines the company’s prospects.”
How do small and medium-sized tool companies develop?
From the current point of view, small and medium-sized tool companies are in a relatively difficult situation. It is impossible to compete fairly with international brands and tool giants, and it is impossible to compare prices with small and micro enterprises. Its main advantage is that it has a certain degree of strength. Compared with small and micro enterprises, its products are more stable and consistent, and its larger marketing investment allows it to be more visible at exhibitions. But these advantages are slowly being leveled or losing their appeal!
what to do?
1. Compare prices with international brands and tool giants. Although they have stronger cost control, they must also maintain high gross margins due to higher scale expenditures and operating costs. In this way, small and medium-sized tool companies can develop breakthroughs through branded operating models, with price advantages and flexible policies. keyang
2. Compare quality and brand with small and micro enterprises. The biggest characteristic of small and micro enterprises is that they minimize costs through informal operations. There is no need for standard factory buildings, no formal talents, no formal taxes, no formal management, etc. But all operations only highlight one cost advantage. Unfortunately, many companies use price as a weapon. When they see other people’s prices being low, they continue to lower prices. This is suicidal behavior.
How do small and micro tool companies develop?
Cost advantage is not a long-term solution, and the battlefield for cost advantage will also change. Now the cost advantage of the factory is being covered, and a small business can obtain a price advantage by reducing costs in various ways. But giants have a capital mindset and invest wherever the cost is low. Small companies have a cost advantage in producing in China, while large companies invest in places with lower costs, such as Vietnam and Mexico. This not only reduces various costs, but also saves logistics costs and import duties.
Therefore, having a cost advantage on the manufacturing side is no longer competitive.
1. The cost advantage will be surpassed by countries with lower costs.
2. The cost advantage on the manufacturing side means that suppliers compete at low prices. Price-oriented customers only account for a small market share, which is the core reason why low prices do not make it big.
The battlefield for cost advantage has shifted from the manufacturing side to the market side. Only if you compete with the giants as a brand can you realize the price advantage, because the giant’s huge system requires that its market price cannot be low. Moreover, without the flexibility of small and medium-sized enterprises, the impact of arbitrary price adjustments will be too great and the losses will be too great.
Small and micro enterprises must focus to magnify their advantages. Make a category or a product and make it the best. This is difficult for both giants and companies larger than yours to do, because they are too large to apply this model. It should be noted that many companies will think that it is difficult to survive if they are too focused, but the fact is exactly the opposite. The more focused, the easier it is to survive and develop. Because the pros, cons, and risks of constantly developing products coexist. Developing products without a strategy, and just following the trend of developing products when they see good sales, will be like monkeys breaking corn. If you see this, you want this, and if you see something good, you want that. Many companies have developed countless products, but only a few have real sales.
