Lack of core competitiveness of domestic power tools

China is a major global producer of power tools, with domestic brands accounting for 90% of the local market. Whether in production or sales, China has established itself as the world’s leading hub and supplier of electric tools. However, despite this dominance, many Chinese manufacturers still struggle to build core competitiveness. Weak technological innovation, a lack of product diversification, and limited brand recognition have left many companies struggling to scale up and compete internationally. In the domestic electric tool market, Chinese brands dominate, holding 90% of the market share, while imported brands make up just 10%. This reflects strong consumer trust in locally produced tools. Meanwhile, in international markets, China's influence continues to grow. The country has become a key manufacturing base for power tools, exporting a significant portion of its output globally. However, the domestic market is becoming more demanding. Both distributors and end-users are increasingly focused on quality and brand reputation. As consumers become more informed and discerning, there is a growing preference for well-known, high-quality brands. This shift indicates that the power tool market is maturing, with buyers placing greater value on reliability, performance, and long-term value. For Chinese manufacturers, this presents both a challenge and an opportunity — to innovate, improve branding, and build stronger positions in both domestic and global markets.

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