Big sales of new orders, with an average annual revenue of nearly 100 million yuan

Since the beginning of the year, there has been no shortage of good news about sellers’ financing and listing in the cross-border circle, and there have been a lot of big sellers’ orders. Earlier, Jiuan Medical’s 8.1 billion yuan order attracted the attention of the industry, and recently, another big seller, Superstar Technology, also signed a new order.

Giant Star Technology signs new orders, with annual revenue of nearly 100 million yuan

On April 6, Hangzhou Giant Star Technology Co., Ltd. (hereinafter referred to as "Great Star Technology") issued an announcement, which showed that the company had obtained purchase confirmation from a large retailer in the United States. The purchased products are 12-volt power tools, covering the sales and services of the products in approximately 2,000 stores in North America in the next three years.

At present, the above confirmation has taken effect, and Giant Star Technology will start delivery in the second half of this year. It is expected that the annual order amount will be no less than US$15 million (approximately RMB 95 million), which exceeds 50% of the company's power tool product revenue in 2020. The announcement also stated that the sales amount of this order in 2022 will not exceed US$15 million, accounting for less than 1.2% of the company's 2020 operating income, so it will have little impact on the 2022 performance.

Although detailed information about the partner could not be disclosed, Giant Star Technology said the company is ranked high in the Fortune Global 500, primarily operates retail businesses including goods and services, and is among Giant Star Technology's top five customers.

Giant Star Technology is also one of the well-known big sellers in the cross-border circle, and it was successfully listed as early as 2010. The company's main business is the research and development, production and sales of hardware products such as hand tools, handheld power tools, such as laser measuring tools, tool cabinets, industrial storage cabinets and industrial vacuum cleaners.

Giant Star Technology's sales channels cover the world, both online and offline. Offline service targets are mainly large-scale building materials, department stores, hardware and other chain stores and various industrial users, while online business is carried out at home and abroad based on e-commerce platforms.

According to the 2021 performance forecast released by Giant Star Technology at the beginning of the year , the company's operating income is expected to exceed 10 billion yuan for the first time , and the main business growth will exceed 30%. Among them, Giant Star Technology's laser measurement instrument business has increased by more than 100% year-on-year, and the DTC business mainly based on cross-border e-commerce has increased by more than 50% year-on-year. Power tools have achieved revenue of more than 200 million US dollars, becoming a new focus of the company's business.

In addition to focusing on the construction of its own brands, Giant Star Technology also acquires well-known overseas tool brands to accelerate its global layout. It currently owns brands such as Sheffield, WORKPRO, ARROW, PONY&JORGENSEN, and BeASK. In addition to domestic production, it also has production bases in Europe, the United States, and Southeast Asia.

Among them, the company's own brand WORKPRO was successfully listed in the list of "Zhejiang Export Famous Brands" in 2020. The WORKPRO hand tool brand has won the favor of consumers with its diversified product structure and continuous innovation capabilities. In recent years, through the layout of cross-border e-commerce platforms such as Amazon, eBay, and Alibaba AliExpress, WORKPRO has become a well-known hand tool brand in the European and American markets.

As a successful example of a Chinese brand going overseas, Giant Star Technology has also won many honors in China: ranked ninth in the "Top 50 Local Private Multinational Companies in Zhejiang in 2021"; one of the top 100 light industry technology companies in China; HOME DEPOT "2021 Innovation Award", etc.

This order is also a major breakthrough for Giant Technology since it restarted its power tool business in 2020. The European and American power tool markets have great development potential, laying the foundation for the future development of Giant Technology.

The power tool market will reach 46 billion, and scientific research and innovation are still the key

Due to the recurrence of the epidemic, the construction of new houses in the European and American markets and other common factors, the demand for power tools abroad, especially electric tools, has further increased. In addition, the manufacturing, automotive and durable consumer industries are the main sources of demand.

Relevant data shows that electric tools currently account for more than 74% of the power tool market , while other power tools account for a significantly smaller proportion. The data also shows that in terms of overall development scale, the power tool market is expected to exceed US$46 billion this year.

Under the fierce market competition, many domestic and foreign companies have seen the business opportunities in this market. Due to the advantages of geographical location, foreign companies of the same type can enter the market faster. For example, APEX TOOL GROUP and 3M in the United States and Stihl in Germany are famous foreign power tool companies. However, due to the different application fields of products (auto parts, gardening, etc.), these companies also have different product focuses.

APEX TOOL GROUP is a company founded in 2010 as a joint venture between two of the world's leading tool manufacturers, Danaher Tool Group and Cooper Tool. APEX TOOL GROUP has annual sales of approximately $1.5 billion . Although it was established later than other similar companies, it quickly attracted attention from the outside world and became a dark horse in the power tool industry. It was later sold to other companies.

Stihl is a long-established German power tool company founded in 1926. The expansion from a single electric saw tool to a variety of power tools has rapidly expanded Stihl's market size, and its products have been sold in more than 160 countries and regions around the world. In the first eight months of 2021, the group's revenue reached 3.51 billion euros .

The fact that the above-mentioned tool companies have been able to sell well and remain at the forefront of the market for a long time is ultimately due to their investment in product research and development and their brand influence.

Since its establishment, Giant Star Technology has continued to increase its R&D investment and build its own brand. In the first half of 2021, Giant Star Technology's R&D investment was 126 million yuan, 935 new products were developed and designed, and a total of 158 patents were obtained.

Giant Star Technology has also established an experienced professional tool R&D team. The speed of product updates has been improved, and more than 1,000 new products are exported each year . Products such as WORKPRO double-speed screwdrivers, PREXISO pen-type rangefinders, and ARROW 3.6V lithium-ion cordless nail guns have been popular among consumers.

Through innovative research and development, Giant Star Technology has enabled its products to quickly enter the local market and meet consumer demand through multiple supermarket channels such as LOWES, WALMART, and HOMEDEPOT.

The same is true for companies such as APEX TOOL GROUP and Stihl. Stihl's cordless power supply series can be used for personal and professional use, with long power life and easy operation. STIHL's chain saws combine innovative technology with high power, optimal ergonomic design and low weight, minimizing the burden on users and the environment, and are very popular in the market.

It can be seen that simple operation, time-saving, labor-saving and environmental protection have now become the focus of product development for new and old power tool companies.

This is true not only for the power tool market, but also for other markets. Only by grasping consumer demand can we win the market first. In the market competition with homogeneity and rapid product updates, product innovation and technological innovation are the foundation of the enterprise.

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