From bringing new energy and synergy to iconic brands, to bringing a stream of innovation to existing and new markets, to building momentum in geographies around the globe, we are driving organic growth in our pursuit of continued top-quartile performance.
Craftsman Acquisition and Relaunch to Catalyze Growth
A legendary American brand, Craftsman enjoys tremendous consumer awareness built on its legacy of providing reliable products at a good value and standing behind them, qualities that remain at the heart of our culture and our business. We are investing in the brand with a focus on quality, innovation and U.S. manufacturing, with the goal of increasing sales through new channels and reinvigorating the Made in the USA using global materials (MIUSA) heritage of the Craftsman brand.
Currently, approximately $100 million of Craftsman-branded products are sold outside of Sears-related channels, giving us considerable runway for growth. We see significant organic revenue growth potential, with Craftsman as part of Stanley Black & Decker. The relaunch of Craftsman will leverage our world class innovation, commercial and operational excellence — and give us a worthy addition to our stable of iconic brands. Our dedicated Craftsman team is focused on product development, supply chain execution and commercial strategies to deliver a successful relaunch in the second half of 2018.
We are working with passion and excitement to enable this iconic brand with its proud and beloved history to soon reclaim its rightful place in American homes, garages, factories and automotive shops.
Irwin® / Lenox® Revenue Synergies
The addition of the Irwin® and Lenox® brands has enhanced our reach into the mechanical, electrical and plumbing trades while adding complementary products to our hand tool and power tool accessories businesses. This additional breadth of offerings and brand strength allows us to provide a more comprehensive, best-in-class offering. Six geographic markets make up over 80% of sales for Irwin and Lenox, leaving significant geographic distribution white space opportunities. Integration teams are working aggressively to capture this revenue synergy opportunity.
Commercial Excellence in Action: Electric SUV Launch in China
STANLEY Engineered Fastening’s Global Automotive team leveraged global technical expertise and collaboration to secure its Self-Piercing Rivet (SPR) program with a leading automotive startup in China that designs smart, electric and autonomous vehicles. Winning this highly competitive program, which includes over 100 SPR systems, is a major milestone on our path to be the global #1 supplier in SPR systems and leader in electric mobility.
Our Global Emerging Markets business continues to evolve rapidly, due to a multi-pronged strategy we put in place four years ago. We reoriented the business to focus exclusively on the needs of our emerging market end users. This meant creating a new kind of organization, new ways of manufacturing and distribution, and a robust new range of mid-price-point products — as well as new ways of getting closer to our end users and customers, and new ways of thinking about, analyzing and acting on their needs.
For the tradesperson, we created a new global line of power and hand tools under the STANLEY brand which found immediate success, going from zero to roughly $125 million in sales in its first two years. In doing so, we have also made recent innovations relevant to these end users. We continue to make tremendous progress with cordless power tools in markets that until recently had been wholly committed to corded product, because we have developed the right cordless tools with the right features, performance, quality and price. This has given us an unmatched product range on a global basis, with a very clear global strategy and segmentation. In emerging markets, DEWALT targets industrial users, STANLEY is tailored for tradespeople, and BLACK+DECKER serves consumer needs. STANLEY power tools in particular have enabled DEWALT to compete exclusively in the premium segment.
The mid-price-point segment makes up approximately 70% of the tools market in developing regions.
E-Commerce Gaining Ground
We continue to expand our distribution network across all emerging markets. In 18 months, we brought to market a comprehensive e-commerce strategy across the emerging markets, which resulted in growth of approximately 50% in 2017 compared to the prior year. Our e-commerce efforts focus on a few different areas. First, we partner with global e-commerce customers that compete in both developed and emerging economies. Second, we are working with regional players in Latin America, Russia and other markets. We also support the e-commerce efforts of our existing retailers and pure e-retailers across the globe.
Growth in emerging market e-commerce in 2017