After the hottest construction machinery accelerat

Construction machinery: speed up the market service after international layout to become a blue ocean

construction machinery: speed up the market service after international layout to become a blue ocean

China Construction Machinery Information

in order to truly realize the path of internationalization, Chinese construction machinery enterprises must increase the research and development of new products and new technologies. At the same time, Zeng Guangan also pointed out that post market services can not be ignored

"for Liu Gong, it's better to be a long-lived Millennium turtle than a rabbit that runs quickly and has a short life span." At the dealer annual meeting of Guangxi Liugong Group Co., Ltd. (hereinafter referred to as Liugong), Zeng Guangan, chairman of Liugong () vividly described the development direction of Liugong

the background of Zeng Guangan's words is that after the high growth of China's construction machinery industry before 2011, the domestic construction machinery market has continued to adjust due to the impact of domestic macroeconomic transformation and the slowdown in the growth rate of infrastructure and real estate investment. So far, it has experienced a decline for four consecutive years

in order to better develop under the "new normal", enterprises including Liugong and XCMG machinery () are actively responding, such as going abroad to layout overseas markets, and are making in-depth adjustments, that is, extending to the field of core parts through research and development or increasing post market services through the adjustment of business model

academician Xu Binshi of the Chinese Academy of engineering also said frankly that the post market of construction machinery must be a new blue ocean. The development of the post market of construction machinery must focus on the five major parts of service (repair and maintenance), accessories, leasing, second and remanufacture, which will improve the profit model of enterprises and enhance their profitability. It is understood that Liugong, XCMG machinery and other enterprises have chosen the second-hand equipment sales and leasing business to press the "quick rise" key, the investment of core parts and components, etc

layout of overseas markets

the domestic construction machinery market has continued to adjust. From 2011 to 2014, it has experienced decline and adjustment for four consecutive years. From the data of this year, the situation of the construction machinery industry is also further deteriorating

in the first half of this year, 18 listed companies of construction machinery and key parts of construction machinery achieved an operating revenue of 5009 billion yuan, a year-on-year decrease of 29.31%; The net profit of 18 listed companies in the first half of the year was an overall loss of 590 million yuan, a year-on-year decrease of 114.89% compared with the profit of 3.96 billion yuan in the first half of 2014

the performance of the construction machinery industry in the capital market is not very "satisfactory". Since the listing of hailunzhe () and Hengli oil cylinder () in 2011, there have been no new listed companies in the construction machinery industry in the past four years

"affected by the decline in the growth rate of macro-economy and fixed asset investment, the overall demand of the construction machinery industry is insufficient, and the industrial overcapacity and reshuffle are intensifying." XCMG machinery said frankly in the interim report

with the recession of the whole industry, many domestic construction machinery enterprises have begun to go abroad and seek development. For example, Xiamen industrial products have been sold to more than 50 countries and regions overseas, and have more than 30 offices and dealers overseas; At present, Sany Heavy Industry () has many overseas R & D and manufacturing bases in the United States, Germany, India, Brazil and other countries, and the group's business covers more than 100 countries and regions around the world

Liugong in the southwest of pian'an also began to carry out overseas layout in 2003, and embarked on the road of entering overseas. At present, Liugong has formed a global business strategic layout, with about 380 dealers in more than 130 countries and regions around the world, 8 parts centers and 10 overseas subsidiaries. At present, the contribution rate of Liugong's overseas business has jumped to more than 35%, the proportion of international employees has risen to 20% of 10000 employees, and overseas assets account for nearly 10% of Liugong's total assets

Liugong's overseas layout also coincides with the country's strategic development of the "the Belt and Road". "In 65 countries along the the Belt and Road, Liugong has developed markets in 63 countries in the past 10 years. In five Central Asian countries, Russia, Mongolia, Germany, Poland, Latvia, Pakistan and other countries along the the Belt and Road, Liugong has established distribution points, service and parts support." Zeng Guangan told 21st Century Business Herald

in Liugong's plan, its overseas revenue will gradually increase, from 35% of the total revenue in 2015 to 40% in 2018, and by 2020, its overseas revenue will account for 45% of the total revenue

post transformation market service

however, in the process of going global, Chinese enterprises, including Liu Gong, will encounter various difficulties. For example, on November 18, Shantui Co., Ltd. announced that it had received a notice from its attorney, and the Eurasian Economic Commission made a final decision on November 10: for the crawler bulldozers with non steering and steering bulldozers below 250 horsepower produced in China imported into the Russia Kazakhstan Belarus customs union, Anti dumping duties of 9.65% - 44.65% will be levied on the products involved imported from China, with a validity period of 5 years. Among them, the ruling imposed an anti-dumping tax rate of 11.31% on bulldozer products of Shantui shares

the encounter of Shantui is only one of the challenges for Chinese construction machinery enterprises to explore the international market. Due to the high similarity and low technical content of some products of domestic enterprises, it has caused an impact on local traditional industries, which has caused some countries to restrict the import of Chinese products by increasing certification, improving technology fortress, adjusting tariffs and other means

in order to truly realize the road of internationalization, Chinese construction machinery enterprises must increase the research and development of new products and technologies. At the same time, Zeng Guangan also pointed out that post market services can not be ignored

it is understood that the post market of construction machinery mainly includes five parts: Service (repair and maintenance), accessories, leasing, secondary and remanufacture. The market potential of a construction machinery often exceeds the cost of purchasing equipment. Relevant data show that in the profit composition of the construction machinery industry in Europe, America and Japan, the contribution rate of new equipment is less than 20%, and the contribution rate of maintenance services accounts for half of the country. The contribution rate of accessories, leasing and other businesses as well as second-hand equipment is very prominent. For example, in mature markets such as the United States, Europe and Japan, the proportion of sales revenue of construction machinery to post market revenue is 64:100, while in China's construction machinery market, this proportion is only 350:10

Chinese construction machinery enterprises are also aware of this gap, and in the "force" after the market this blue ocean, such as XCMG machinery used car sales and leasing. Statistics show that as of June 26, 2015, 58 wheeled cranes have revitalized second-hand resources, with a sales amount of more than 100 million yuan, an increase of 24 compared with the first half of last year, and a year-on-year increase of 125% compared with the first half of last year; At the same time, XCMG machinery has also implemented the leasing industry and introduced the business of strategic investor bee Net Investment Co., Ltd. its second-hand car leasing business is mainly aimed at all terrain cranes with a tonnage of 300 tons and above. For users who do not have the purchasing capacity of ultra large tonnage products, they can rent products to fully meet the diversified needs of users

driven by the whole post market business, Liugong also launched global operational leasing, financial leasing, etc., and also launched the second-hand equipment business a few years ago. The second-hand equipment business has also broadened the benchmark agent business in Liugong's channel system. Agents can actively participate in the international business of large state-owned construction enterprises through the transnational operation and leasing of second-hand equipment. When the market is depressed, the operating pressure of agents and Liugong has been alleviated accordingly

on October 9, Sany engineering machinery product remanufacture project with a total investment of 200million yuan settled in Liuyang manufacturing industrial base. After the project is put into operation, its main business scope is the sales, leasing and related after-sales services of Sany construction machinery and accessories; Sales and after-sales service of remanufacture of complete construction machinery and parts