Comparison of Characteristics and Market Shares of Diamond Tools in China and South Korea（2）

Comparison of Cost Advantages

Chinese Diamond Tools

China has rich raw material resources and a large labor market, which gives Chinese diamond tools obvious cost advantages in production. In terms of raw materials, China is an important producer of graphite and metal powders in the world, providing sufficient and relatively inexpensive raw materials for diamond synthesis and tool manufacturing. In terms of labor costs, compared with South Korea, China's labor costs are lower. Large - scale production can effectively reduce the production cost per unit of product. This cost advantage makes Chinese diamond tools more competitive in price, especially in the mid - to - low - end market, where they can meet the needs of a large number of customers at a lower price.

South Korean Diamond Tools

Due to the scarcity of resources in South Korea, most raw materials rely on imports, resulting in high raw material procurement costs. Coupled with the high labor costs in South Korea, the production cost of South Korean diamond tools is relatively high. Although South Korean products can obtain a high profit margin in the high - end market by virtue of their quality and technical advantages, in the price - sensitive mid - to - low - end market, the market share of South Korean products is greatly impacted by Chinese products.

Comparison of Market Shares

Currently, both China and South Korea occupy important positions in the global diamond tool market. China, with its rich product types and cost advantages, occupies a large share in the mid - to - low - end market, especially in price - sensitive fields such as construction and stone processing. According to data from market research institutions, in the global construction diamond saw blade market, the market share of Chinese products is about 35%. South Korea, with its high - quality products and advanced technologies, has strong competitiveness in the high - end market and fields with high requirements for product accuracy, such as precision electronics manufacturing and optical instrument processing. In the global high - end precision diamond grinding wheel market, the market share of South Korean products is about 20%.

In conclusion, the diamond tools of China and South Korea each have their own advantages and disadvantages. Chinese products have advantages in cost and product type richness and occupy a large share in the mid - to - low - end market. South Korean products are known for their high quality and advanced technologies and perform outstandingly in the high - end market, but the high cost limits their expansion in the mid - to - low - end market. In the future, with the continuous progress of technology and the intensification of market competition, the diamond tool industries of both countries need to continuously innovate and optimize to enhance their competitiveness in the global market. Chinese enterprises have already increased their investment in technology research and development, improved product quality and technical levels, and started to move towards the high - end market. Several high - quality enterprises have been recognized by European and American customers and have a good market share in these markets. South Korean enterprises need to explore ways to reduce costs and further consolidate and expand their market share in the high - end market.