Analysis of High-end Market Segmentation of Chinese Hardware Tools

For China’s hardware tool companies, if they want to become the mainstream brand of the industry and have a stable market share, they must do a systematic deployment of brand marketing in the next 5 years and use 5 years to complete the brand strategy goals. Dealers and buyers form brand awareness, reputation and loyalty, enhance the company's core competitiveness, and strive to increase the added value of corporate brands. This is the development mode that China's hardware and tool companies must take in the next five years.

According to the general division of western hardware tools industry, products can be divided into four categories: aerospace, industrial, professional, and DIY. Such divisions are not very clear in China’s demand market, and the market generally accepts “high ", medium-grade, mid-range, middle-low, low-grade" this classification method, and can also be more detailed. Since the market recognizes the latter classification method, and when the brand's competition is concentrated in the industrial and professional fields, there is no point in saying that the industrial and professional levels are of much significance.

From the March 2010 Shanghai International Hardware Show we found that there are some relatively well-packaged companies in the market. Their products have been positioned in the high-end brands in the Chinese market, such as the steel shield brand of Hangzhou Juxing Technology Co., Ltd. Hong Kong Hengli Group's Aiwei Boer brand. How to differentiate one's own brand from other brands and find the exact difference is an issue that these companies must solve immediately. Otherwise, in the process of marketing, it will lead to excessive investment and poor results. It is difficult to persuade customers in a short period of time. The network is difficult to establish quickly and the channel loyalty is not high. Who can use the market growth space after the economic crisis and quickly stand out from the crowd, who will become the first tool brand in their target market just like the Shida brand.

Therefore, when the company's product gap is not large, only through the positioning of the brand to achieve differentiation, brand positioning, although there is no direct relationship with the price of the product, but the price can reflect the positioning of the brand, according to the Chinese hardware The status of the tool market, we come to this conclusion:

·High-end brands: BetaSnap-Onfacom Gidori et al

·Mid-end and high-end brands: Shida Stanley's two core brands, yato, atools and other new brands

·Middle-range brands (below mid-to-high-end brands): Some domestic hardware tools brands belong to this file

·Middle brands: most of the hardware tools brands in China belong to this block

The high-end market has a very high requirement on product quality, and it is difficult for domestic companies to meet the requirements in production standards. Even if the products are qualified, they must have a foothold in the high-end market and the added value of the brand must be high. Accordingly, the enterprises are required to have a brand strategy and marketing level. , corporate funds and other aspects have enough strength. We found that companies operating high-end brands are all international hardware giants. No matter whether they are in terms of strength or experience, Chinese companies are incomparable.

The demand in the high-end market is relatively large. This part of the market has higher requirements for products and brands, and the price sensitivity is slightly higher than that of the high-end market. In this part of the market, Shida and Stanley occupy the dominant position, and the market has already recognized them as the first and second brands in this field. Therefore, it is not possible for latecomers to replace the status of these two brands.

Therefore, for the middle-to-high end hardware tools market, local Chinese companies can intervene, but they need to have sufficient funds and systematic marketing capabilities. And if you want to become a strong brand in this grade, even if you have plenty of resources, it will be difficult to become a mainstream brand in 5 years, and you will be confronted with Stanley and Stanley. However, in terms of the company’s R&D and production capabilities, Shandong Wendeng Power Co., Ltd., a local hardware company in China, has such strength. However, the lack of a domestic sales network and lack of brand operation experience have limited the company's domestic brand strategy.

Mid-range brands basically cover most domestic well-known tool brands in China, and the competition in this field is the most intense. Moreover, in the case of a narrow product quality gap, the competition in this field has now become blind, and the difference between them has not been fully reflected.