The post-market potential of construction machinery is huge

After more than ten years of rapid development, the construction machinery industry has made China the largest country in engineering machinery. However, as the world economy continues to slump. The development of China's construction machinery industry has also encountered a bottleneck, and the industry transformation is imminent. Jun Jun, president of the China Construction Machinery Industry Association, said that the economic performance of the industry since the beginning of the year has shown a great contrast with the same period of last year. Most companies have poor capital conditions and profitability. This is a difficulty in the construction machinery industry in the past decade. . The construction machinery industry has a single profit model, and other profit models need to be developed.

Must have earned a huge amount of sales to break the net? Are there other ways to achieve breakthroughs? China is currently the country with the largest number of construction machinery in the world, but in the complete life cycle of these products, the other economic value generated, whether the business Can be involved? In the United States, the post-market service industry is known as the "gold industry"; in Europe, the post-market is also a major source of profit for the manufacturing industry. According to statistics, in the mature markets of the United States, Japan, and other developed countries, the ratio of machinery sales revenue to post-market revenue is 64:100, while in the Chinese construction machinery market, this ratio is 350:100. Compared with the United States, Japan and other engineering machinery powerhouses, China's construction machinery has huge market potential and many opportunities.

As far as the domestic situation is concerned, the post-market has not received sufficient attention from companies. Some experts believe that Chinese companies have made some achievements in the competition with the world’s construction machinery giants in the previous decade. However, to grasp the next decade, we must work hard in the post-market. “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. However, we must admit that to develop post-market business, China's construction machinery companies must first solve the problem. First of all, at present, many brands in the domestic market do not have the self-discipline of industry associations, lack of management, and the market is spontaneous and loose. The degree of standardization of network construction is low and stability is not high. Secondly, due to insufficient input and poor management, the response time of the post-market service system of domestic construction machinery is poor, and the technical level of after-sales service personnel is not high, and the overall lack of competitiveness.

The post-market of construction machinery has broad commercial potential, and it is the future competition trend of construction machinery industry. “The construction machinery industry has entered the era of service competition. The quality of services is related to the survival of enterprises. Some well-known construction machinery companies in foreign countries such as Germany, Belgium, Japan and the United States all have a strong and complete industrial chain, in marketing, service and after-sales services. Such links establish a good profit model and form a sustainable development advantage that is worth studying.” This is an industry expert’s advice to the industry. In fact, the current bottleneck encountered by the construction machinery industry was also staged in the Chinese home appliance industry 10 years ago. The domestic famous brand Haier gave the industry the best answer. As early as more than a decade ago, in the increasingly serious homogeneity of home appliances, Haier decisively selected services from “price and” and “service”, and innovatively proposed the “free service” model. However, ten years later, “pay services” are quietly emerging and forming a trend. You will find that many electrical appliances in large shopping malls begin to indicate the price of one-year service and the price of two-year service. The home appliance industry has shifted from using “free services” to attract consumers to users gradually accepting “pay services,” a process that took 10 years. "Service" has become another product in the market economy competition, creating value for the company from another dimension. Consumers in Western developed countries all have the awareness of "services need to pay". Valuable "services" allow the value of corporate service personnel to be identified and form a good signal, effectively promoting the sound development of enterprises and industries.

Of course, there is still a long way to go for service charges in the construction machinery industry. However, in the rainy days, the market after the distribution of construction machinery is undoubtedly a short-cut to grasp the future construction machinery market.