China's tool market has great potential for development

China is the world's most promising tool market. Many multinational tool groups have made expanding their tool sales in China the top choice in their own development strategies. Each company’s Asia Pacific headquarters, R&D center, training center, and logistics center have settled in China. In order to use China as the center to radiate into Asia, we can more directly and conveniently serve our customers and better meet the needs of customers in the Asia Pacific region.

As a result of inventorying, around the huge “cake” in the Chinese tool market, the foreign tools actively engaged in the market are traditionally divided into five specialties: Shanshan Department, IMC Department, American Department, European Department, and Japanese Department. They are in the Chinese market and domestically. The knives are engaged in a war of bloodlessness.

Among the factions of the faction, the Sandvik Group includes Coromant, Walter, Seco, Wannet, Safety, and Thomas.

On June 6, 2012, Sandvik Coromant Greater China Beijing Efficiency Center was grandly opened. The Efficiency Center is Sandvik Coromant's original concept in the field of metal processing. There are 27 efficiency centers in more than 20 countries worldwide.

Although Shante is the leader in the global cutting tool market, Kenneth, Mitsubishi and IMC are the "second-ranking contenders." On April 2, 2012, IMC CEO Jacob Harpaz said in his speech at the opening ceremony of the second factory of Tequico: “The IMC Group is the second largest manufacturer of metal cutting tools in the world, so it is not ranked first in many fields. One is the second." The heart of the world's top leaders is overshadowed.

The American Department is mainly represented by Kenner. In 2011, Kennametal Metals received approximately $2.4 billion in remuneration, with revenue from outside of North America exceeding 50%. Of course, there are cutter brands such as STELLRAM, MILLSTAR, MAFU, SGS, GARR, and STAR.

The Japanese department includes Mitsubishi, Kyocera, Sumitomo, Tailo, Oshiji, Aojie, Fujitsu, and Hitachi. Like the machine tool, the cost-effectiveness of Japanese cutting tools is very advantageous in China.

The European Department is mainly based in Germany, including MAPAL, Guehring, EMUGE, Fraisa, VARGUS, HORN, and Hoffman.

Although foreign brands of cutting tools have flourished in the Chinese market, in the past few years, the Chinese market has also achieved excellent companies such as Zhuzhou Diamond, Xiamen Golden Heron and Zheng Ding. Together with the original four major tool factories, there are approximately 10 backbones. Enterprises have completed the transformation from traditional tools to the modern cutting tool industry, and they have developed well every year. They have entered a period of rapid growth.

However, China's annual imports of tools account for about 1/3 of the total market, and all are modern efficient tools. Among the homemade tools, only 10%~15% of modern high-efficiency tools are available. This shows that while China has become the world's most promising tool market, the high-end market is occupied by multinational companies and the development of domestic tools is a long way to go.

In addition, it should be mentioned that, in the Asian market, Chinese Taiwanese knives (Jingheyuan, Shanghu, DHF, Anwei, etc.) and Korean knives also have a certain status in the Chinese cutting tool market, especially Chinese Taiwanese knives, which are lower. The price and good practicality have won the hearts of Chinese customers.

Selling a tool is just like selling a service. Just like a machine tool, a customer buying a tool doesn't just need the tool itself, but also needs the perfect cutting.

Therefore, for the tool manufacturing company, the sales tool can not only describe the performance index of the simple tool itself, but also need to study the material of the workpiece to be processed by the customer and combine it with the cost to give a systematic solution.

“The current situation is that customers want a certain percentage of annual cost reductions, but the demand for services is always improving.” Shantou under a certain brand of tool sales personnel told reporters that the situation is not good this year, the company performance fell 20 About %, but the customer's psychological increase is also expected to increase the company's operating costs.

Tool is a consumer industrial product, the price is the weapon of the competitive market, the pricing can not be more than similar products. Therefore, in addition to the scale of sales to amortize costs, doing so is also an important way for companies to obtain corresponding profits.

In fact, with the emergence of the new manufacturing industry and the increasing customer demand for production efficiency, today's international tool manufacturers are subdividing their own technical teams. Not only Coromant, but also other international tool manufacturing companies such as Iscar, Kenneth, and Shanda, from R&D to technical service teams, have already owned the Die & Mould Industry Group, Automotive Industry Group, Aviation Industry Group, MTB Group, and New Increased energy industry group, medical industry group and so on.

Due to the characteristics of the tool industry, tool manufacturers often want their product range to be complete, which is also convenient for customers to provide a full range of solutions. However, because of the characteristics of processed products, it is often necessary to go in a refined and specialized manner.

For example, in order to further improve the product range of its tools, Seco succeeded in the acquisition of EPB, the French tool and boring knife manufacturing company, and Jabro, which produces solid carbide milling cutters in the Netherlands.

Seco said that it will showcase a variety of cutting tool solutions designed for aerospace applications at the 2012 Singapore Air Show. The company will focus on new products for the machining of titanium alloys, aluminum alloys, heat-resistant superalloys and composites, and will meet the needs of most aerospace, defense manufacturing and other industries today.

Therefore, "big" and "special" are a balanced art for each tool manufacturing company. People in the industry believe that Sandvik is now the biggest, and most of the time, it is from the perspective of sales, and their products have the greatest advantage.

But this also lays a hidden danger, such as its products can be easily replaced. It is precisely because of this that there will be other companies’ survival, and there will be two or three hundred million sales per year for other small businesses.

Jiang Wende, general manager of Seco Tools (Shanghai), stated that it is no longer possible to define the advantages and disadvantages of a tool brand simply by using the quality and processing performance of the product. The user's needs are to improve efficiency, reduce costs, and create profits. To help users really achieve this, tool suppliers must not only provide good products but also provide better services.

Due to the current competitive pressures of companies, customers rely more and more on tooling in equipment processing. Taking the automotive engine as an example, in the past, the configuration of the production line equipment was developed by the diesel engine factory, and then gradually moved to the hands of the machine tool supplier. However, the current trend is that the tool supplier slowly assumes this responsibility.

"To increase market share in market competition, we must do better than others. Then we need a reliable foundation - a reliable product base and a reliable service foundation."

Shangao's goal is to actively listen to and focus on the needs of customers, not only to provide a complete series of excellent tool products, but also to provide more value-added services with the goal of being a trusted partner of customers. If the product is compared to hardware and external work, and the service is compared to software and internal strength, the tool manufacturing enterprise must be both hard and soft and both internal and external.