In recent years, the development of hardware power tools has been rapid, yet it still lags behind that of foreign counterparts. As a high-tech industry, the power tool sector heavily relies on technological advancement. To stay competitive, companies must actively invest in and adopt relevant technologies to strengthen their capabilities. The industry is part of advanced equipment manufacturing and continuously upgrades its services to meet higher standards. Electric tools are widely used across various sectors, including aerospace, high-speed rail construction, shipbuilding, automotive, and more, as well as in construction, home decoration, woodworking, and metal processing.
The global power tool market can be broadly categorized into three levels: industrial-grade, professional-grade, and DIY (do-it-yourself) household-level. Industrial-grade tools are designed for high-precision environments or industries with strict environmental regulations, such as aerospace. These products demand high technical expertise, offer greater profit margins, but serve a smaller, specialized market. On the other hand, DIY tools are intended for low-accuracy tasks like home repairs or simple renovations, featuring lower technical content and modest profit margins. Currently, most Chinese manufacturers focus on producing DIY-level power tools, often competing primarily through price rather than innovation, leading to a crowded and unstructured market.
Professional-grade power tools, by contrast, are significantly more advanced in terms of technology, application scope, and value. They typically have higher power output, faster speeds, longer motor life, and can operate continuously for extended periods. These tools come with higher technical complexity, better profit margins, and broader market reach. They also require a higher industry entry barrier and carry significant brand value.
China's domestic power tool market has long been dominated by international giants such as Bosch from Germany, Makita from Japan, Hitachi from Japan, and DeWalt from the United States. However, in recent years, there has been a noticeable decline in the market share of foreign brands. In contrast, Ruiqi Power Tools has been steadily gaining ground, expanding its presence and gradually replacing imported brands. Among the top four in the domestic market, Ruiqi stands out as the youngest and fastest-growing player, achieving a top-four position within just seven years of operation. There is a growing possibility that Ruiqi could one day rival long-established brands like Bosch and Makita.
Looking at the current state of China’s power tool industry, the majority of companies produce DIY-level products, which dominate the market. Few manufacturers are capable of producing professional-grade tools in series, resulting in low industry concentration and a lack of clear market leaders. As the industry evolves, it is expected to undergo consolidation, eventually being led by a few strong players. Domestic and foreign brands will see a shift in market shares, with domestic brands increasingly taking over from foreign ones. Industry integration will likely be driven by these leading companies.
Ruiqi, as the only listed company focused on power tools in China, has both the opportunity and the potential to play a key role in the reorganization and restructuring of the domestic power tool industry. Its position in the capital market gives it a unique platform to drive growth and transformation in this important sector.
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