There is no doubt that the market size of the tool industry will continue to expand, but the number of tool companies will continue to decrease. This is a rule, just like running a marathon, it is impossible for everyone to reach the finish line.
1. Seize the opportunity of changes in sales scenarios
Various possibilities can be seen from the changes in the car sales scene. In the past, cars were only sold in 4S stores and car dealerships. Today, the mainstream scenes for car sales are in supermarkets, shopping malls, train stations, airports and online, followed by 4S stores. Dealerships are no longer necessary. The opportunities will be wherever the main sales scenarios for future tools are.
2. Seize the window period for branding and internationalization of tool companies
The year before 2030 is a window period for tool companies to brand and internationalize. Before 2050, it will be the development and maturity period of Chinese enterprise branding and internationalization. At this point, China will enter the ranks of developed countries.
3. Seize the opportunity of transformation and upgrading of the tool industry
The transformation of tool products from AC to lithium battery is just a transition period. Its ultimate model must be smart products and smart tools. Enterprises need to change, products need to change, and models also need to change.
Products are upgraded from electric to smart, and companies transform from OEM to brand. There are a lot of opportunities in this, and at the same time, it also faces a cruel competition system. The competition is who can see more clearly, who can see deeper, and who can grasp the entry point.
4. Seize the opportunity of tool company merger and alliance
The tool industry is developing in two directions: specialization and diversification. Specialization means either making power tools, garden tools or hand tools, focusing on those and developing in depth. Diversification requires forming an ecosystem of tools from hand tools, power tools, and garden tools. Adopt an independent professional brand model for each category.
The professional model is more suitable for alliances with foreign brands or foreign customers. Use the customer’s brand management or independent brand authorization to form a community of interests. While both diversification models can be used, acquisitions and mergers are of greater significance, and diversification means a greater need for category expansion. Acquisitions and mergers pursue ownership rights, while alliances pursue usage rights.
The current situation of Chinese tool brands
1. If a company has multiple brands, or even N multiple brands, change the color or several products. There is no positioning at all, no expression of the brand. Just print the trademark on the product!
2. A company builds a brand, but all its practices are based on itself, what we want and what we want, without any dialogue with consumers or users. All languages swear or shout slogans!
3. When a company builds a brand, it just copies the rhetoric of other industries, without considering the fit and feasibility of the industry.
Building a brand is like building your own empire, you must have your own expression. Positioning must also speak to users and consumers and be relevant to them. And the planning and design must match the brand’s positioning. If you are building a stable and high-quality brand, but the design is fancy and frivolous, it will not match no matter how beautiful the design is.
Especially the expression and appeal of the brand. What is a brand? What does it represent? What do you want to do? This is very important. Just like cars, Mercedes-Benz, BMW, Volvo. Each has a different positioning, represents something different, and wants to do something different. Therefore, the brand is logical, and it is not just a matter of bragging. The context and the preceding and following words are related.
Don’t let others say: What will happen if you poke your shield with your spear? If you really understand branding, you can poke it to consumers and users, because this contradiction is not contradictory at all!
If any brand wants to be built well, it must have a deep understanding of the industry, a keen control of human nature, an accurate judgment of trends, and friendly communication with consumers and users.
