Post-market development strategy for construction machinery

Since March 2011, the construction machinery industry has bid farewell to the golden period of rapid development in the past and ushered in an adjustment period that needs continuous exploration. Facing the sluggish construction machinery market, many construction machinery companies pay more attention to overseas markets and increase export efforts. At the same time, they continue to learn from good foreign companies as a good business model. They noticed that: In mature markets abroad, the whole machine sales Profits account for about 30% of overall profits, and the latter market can contribute about 70% of profits. In the domestic market, overall sales profit accounts for about 70% or even more of overall profits. This set of figures fully shows that the post-market development of the construction machinery industry in China is insufficient. “At present, many bottlenecks faced by machinery companies are mainly channel issues. The fierce competition in foreign markets and the limited capacity in the domestic market make it a good strategy for the after-sales service market.” said Liu Wenhua, a senior economist with headquarters in Nan'an, Lu'an Machinery. Therefore, after the development of construction machinery, the market business has become an important measure for the development of many engineering machinery companies.

Post-market overview of construction machinery

The concept of aftermarket was first proposed by the American automobile company. Its original intention was that: 1 dollar car was sold, it would generate 8 US dollars related service market, including auto parts supply, car modification, repair and maintenance, beauty and car Electrical appliances. With the improvement and development of the market, the concept of the after market has been used by more and more industries and fields. In short, post-market refers to the various services that surround the use of products after they are sold. Broadly speaking, post-market refers not only to the business market after sales, but to all business market areas before and after product production and sales.

The post-market of construction machinery is the continuation of the production and sales market of engineering machinery products, ie, the markets involved after the sale of construction machinery products, and the services traded with the sold construction machinery products as the carrier. The industry generally believes that the post-market structure of construction machinery consists of five parts: service (maintenance and maintenance), parts, lease, second mobile phone, and remanufacturing.

China's construction machinery market aftermarket

After 10 years of rapid growth, the construction machinery industry in China suddenly turned into a development bottleneck in 2011, causing serious overcapacity. For a time, the development of the entire industry was covered with a layer of fog, which put many construction machinery companies under pressure.

At present, China's construction machinery market is in a state of oversupply, overcapacity, and inventory surge. According to statistics, as of the end of 2012, the main product of China's construction machinery is about 500 to 6 million units, which provides a basis for the development of the post-market as well as a vast space. As a result, many companies began to focus on the post-market and increase their investment in the market, hoping to profit in the post-market. However, many companies do not know much about the aftermarket. After entering the market, the market is blindly marching into the market. Therefore, blindly marching into the market, homogenization competition makes after-sales service almost unprofitable.

According to Yu Yajun, vice president of Guangxi Liugong Machinery Co., Ltd., the current status of the construction machinery industry in China is:

At present, the status quo of post-market service system for domestic construction machinery enterprises is: The importance of after-sales service is not seen from a strategic perspective, causing problems such as insufficient investment and poor management; poor timeliness of services and low technical level of after-sales service personnel restrict the market The role of the service.

At present, the status quo of post-market talents training in domestic construction machinery enterprises is as follows: The overall quality of post-market employees is low, and there is a shortage of professional and technical personnel; the technical training center is not perfect and means are behind and cannot meet the needs of users.

At present, the status quo of the post-market business model of domestic construction machinery enterprises is: the past business model drawbacks: high market after-sales service investment, low profits, service positioning for the whole machine sales assistance, service creation profit awareness is weak.

Construction Machinery Enterprise Development After Market Strategy

In the era of overcapacity, overstocking of the market, and fierce competition in construction machinery, how the construction machinery companies should develop after the market became the focus of attention of many companies.

The post-market of construction machinery consists of five parts: service (maintenance and maintenance), accessories, lease, second mobile phone and remanufacturing. After the development of the market should focus on these five major parts.

In terms of services, construction machinery companies should improve service quality and increase the rate of duplicate purchases. With the intense competition in the industry, many products tend to be homogenous, and the advantages of enterprises at the product level have become insignificant, so the importance of services has gradually become more prominent. The engineering machinery industry is particularly strong in terms of technology. As a service engineer of a construction machine, it is necessary to understand certain technologies and operational common sense. This requires specialized training for the company, providing guidance to the relevant staff, from the complex control techniques to the daily maintenance of the product, to the solution of unexpected problems in the construction process, and so on.

In terms of accessories, maintenance drives sales of accessories. To operate after the market is inseparable from the professional maintenance services and accessories sales, companies can set up a certain point of maintenance as needed to provide users with convenient services. However, it must be noted that companies must be cautious in the maintenance, service, and accessories in the post-market, and it is best to use original parts, because if disputes do not resolve properly, it will have an adverse effect on companies and agents.

In terms of leasing, reduce equipment stagnation and ensure operating rate. The leasing of construction machinery and equipment in China was gradually developed along with the establishment of China's market economic system and the deepening of reform and opening up. It began in the early 1990s and gradually became more standardized. According to statistics, general construction project construction companies account for more than 20% to 40% of machinery used for lease, and individual companies have reached more than 70%. The construction machinery leasing market has a broad space of development and optimistic prospects. The leasing business will be carried out in the direction of standardization and standardization. Construction machinery companies will be able to obtain better results in this segmented aftermarket.

In terms of the second mobile phone, it guarantees the evaluation and circulation of the second mobile phone. At present, the second mobile phone in China's construction machinery market has become a hot topic of concern. The use of used machinery as a supplement to the market will enable the construction machinery equipment market to be integrated with the capital market, reduce the input costs of construction units, shorten the return time, increase the rate of return, and fully meet customer needs. In the past two years, the E-Purse auctions and Ritchie Bros. auctions are all seeking new business opportunities for second-hand machinery while seeking auctions for business models that are closer to the market and professional customers.

In the remanufacturing industry of construction machinery, we focus on hardware facilities and cultivate professional talents. On the one hand, there is a severe shortage of resources. On the other hand, a large number of old equipments are out of function and they are eliminated. Remanufacturing plays an important role in saving resources and energy, building a recycling economy, and also brings enormous space for the company's aftermarket services. At present, many companies have set up a remanufacturing business unit that specializes in the research and development of the remanufacturing industry and has achieved certain results, but the effect is not satisfactory. At present, remanufactured products are still difficult to be accepted by the public in China. This requires companies to increase investment in the remanufacturing industry and allow more people to understand remanufactured products and accept remanufactured products.

In short, China's construction machinery industry will enter the post-market era in an all-round way, and revenue from the post-market service sector will account for a large part of the income of construction machinery companies. In the current situation that many foreign construction machinery manufacturers have entered the Chinese market and seized the advantage of the post-market sector, China’s construction machinery companies must seize the golden opportunity for the rapid development of the construction machinery industry, thoroughly understand the aftermarket, and carefully analyze the aftermarket. Its own development stage and unique advantages, spotlight opportunities, grab the forefront of the market development of the Chinese construction machinery industry, and stand out from the fiercely competitive market.