Positec Is Set to Begin Selling Its Products in Wal-Mart Stores This Fall

Positec, a China-based manufacturer of power tools, lawn and garden equipment and accessories, is set to begin selling its products in Wal-Mart stores this fall, says Positec Chief Executive Tom Duncan. It will start with fall clean-up products under its brand name WORX. Breaking into the country’s biggest retailer marks another milestone for Positec after Lowe’s agreed to begin stocking its products in October 2009. Positec’s tools are also available Costco and Home Depot, among other major home improvement retailers. Founded in 1994 in Suzhou as an export supplier of power tools for multi-internationals such as Black & Decker, Positec is 100%-owned by Don Gao, who ranked as the 248th-richest person in China with a fortune of $600 million in 2010. Positec introduced its brands WORX and Rockwell in 2004 and 2007, respectively, and they now account for more than 85% of sales. Today the company has established a presence in 12 countries and managed to double the size of its U.S. business during the housing crisis from 2008 to 2010, according to Tom Duncan, who is based in Charlotte, N.C. and runs the North and South American operations. Last year the company’s total revenue was more than $300 million. $220 million of that came from the U.S. market, where Positec holds 12% of the market. This will be the first time shoppers will find Positec products on Wal-Mart store shelves, but previously the company had done business with Wal-Mart Canada and listed products on the Wal-Mart website. The company spends 6% of its revenue on research and development. In comparison, the figure for industry leader Black & Decker is less than 2% while Bosch spends 8%. “Our philosophy is that if you’re the new guy on the block, you have to be different.” says Duncan. “You can’t just walk in the footsteps of the market leader. You will never get anywhere.” Positec’s most popular product has been a light-weight, cordless grass trimmer that won an award from the U.S. Electronic Retailing Association in 2010. Positec also invests heavily in customer communication. Some 15% of its annual revenue goes into TV commercials and social media promotion on platforms such as Facebook and Pinterest. The company’s customer care center takes 300,000 to 400,000 phone calls per year, collecting information on product experiences that is then communicated at Voice of the Customers meetings. An E-team also facilitates communication with younger customers through email, Twitter or live chat. Duncan says Positec expects rapid growth from the domestic market in China. Although sales in China currently generate well under 10% of the company’s revenue, they have more than doubled every year, according to Duncan. Positec competes with entrenched industry leaders like Bosch and Makita and other Japanese companies in the Chinese market. Source: Forbes