Di Yi Cai Jing·2025-05-10 06:50Core Viewpoint - The manufacturing landscape in the U.S. for tools is unlikely to return to previous levels due to high costs and supply chain issues, making it impractical for companies to produce domestically [1][10][11]. Group 1: Company Strategies - QuanFeng Holdings has shifted its production focus to Vietnam due to increased tariffs on Chinese exports to the U.S., with plans to expand its manufacturing capacity there [3][4]. - The company estimates that its sales in 2024 will reach approximately 13 billion RMB, with over 70% coming from the U.S. market [3]. - Giant Star Technology has also established production facilities in Vietnam to mitigate tariff impacts and plans to expand its product range from hand tools to electric tools [4][5]. Group 2: Market Dynamics - The U.S. tool market is the largest globally, with an estimated market size exceeding 170 billion RMB in 2020, and at least half of the tools sold in the U.S. are manufactured in China [1][3]. - The imposition of tariffs has led to a significant increase in costs, with U.S. manufacturers unable to absorb these costs, resulting in a pause in exports from China [3][4][11]. - Major U.S. retailers are seeking solutions to manage tariff costs, indicating a collective concern over the sustainability of high tariffs on consumer goods [6]. Group 3: Competitive Landscape - Companies like QuanFeng Holdings and Giant Star Technology are increasingly competing with established brands such as Stanley Black & Decker, Bosch, and Makita, as they expand their market presence in the U.S. and Europe [13][14]. - The global sales revenue of QuanFeng Holdings is projected to reach 1.77 billion USD in 2024, while Stanley Black & Decker's revenue is expected to be around 15.3 billion USD, highlighting the competitive gap [14]. - The shift in market share from established brands to Chinese companies is evident, with Chinese brands gradually replacing traditional market leaders in various segments [14][15].