Since the 1990s, with the rapid development of China's economy, China's construction machinery industry has entered a period of rapid development. In recent years, small construction machinery, as a rising star, has begun to partially replace the position of large and medium-sized machinery in construction, which is generally welcomed by users. At the same time, the development of small construction machinery is also a manifestation of China's national conditions. This can be seen from the development trend of the construction machinery market in recent years. China is a large agricultural country, and farmers account for the majority of the country’s total population. Rural development is a top priority in China’s overall economic development. Especially in recent years, China has gradually shifted the focus of economic development from cities to rural areas. The new rural construction has elevated it to a new level.
2007 was a year when the construction machinery industry continued to grow at a high speed for several years. However, this year, the small construction machinery that has been neglected has become popular across the board and entered a period of rapid growth. Many manufacturers suffering from macro-control and rising raw material prices, especially small and medium-sized enterprises, are rushing in, hoping that small construction machinery can become a new profit growth point. At the National Agricultural Machinery Ordering Conference held in Hefei in October last year, small construction machinery became a highlight of the exhibition, with more than 100 brands of small loaders and backhoe loaders being shown.
From the perspective of my country's small construction machinery market, different small construction machinery products are at different stages of development. In recent years, the development of small hydraulic excavators has been rapid. In 2006, it has accounted for 30% of the total sales of the domestic hydraulic excavator industry. The market has entered a period of rapid growth; the market size of products such as skid steer loaders and excavator loaders is still limited and growing. It is also relatively slow, and the market is still in the lead-in period; the forklift truck market needs further development in China.
Due to the limitation of development and consumption level, there are still a large number of small construction machinery products that have been simply modified by tractors, especially simple wheeled excavators and simple backhoe loaders. According to incomplete statistics, the annual sales volume of such simple equipment is more than 10,000 units, which has hit the domestic small construction machinery market to a certain extent, especially the backhoe loader market. However, our equipment manufacturers should also see that if the small construction machinery produced by regular enterprises has quality assurance and the price can be within the range acceptable to users, then everyone is still more willing to choose products from such regular manufacturers. .
Domestic excavators with a weight of less than 13 tons are generally called small excavators. As my country's urbanization progresses toward depth and breadth, roads and municipal facilities are being repaired and maintained, and the number of urban small-scale engineering projects is increasing, its engineering business accounted for an increasing proportion of total social construction. According to estimates, the operating efficiency of a 10-ton small excavator can replace 30 to 50 labors, greatly reducing construction costs and management costs, and making the demand for multi-functional small excavators continue to rise. In 2002, the sales volume of the industry was only more than 1,400 units. By 2007, it had reached more than 20,000 units, an increase of more than ten times. In the past few months of 2008, it has already shown considerable growth.
Second, future development characteristics of small construction machinery market
From the perspective of market players, China's future small construction machinery market will show the following characteristics:
China's small construction machinery application field is gradually expanding, and its market growth potential is huge in the next few years, and sales may reach 30,000 to 40,000 units per year. With the continuous improvement of my country's infrastructure construction, the domestic construction model will gradually change from 'major' to 'finely carved', and small construction machinery and equipment will have more and more room for application. With the gradual deepening of the construction of new countryside in China, the application of small equipment in the construction of rural areas and small cities and towns will be more and more; at the same time, with the construction of environmental protection, ecological construction, gardening, greening, farmland construction, etc. gradually increasing, Small construction machinery must also have a broader stage.
China's small construction machinery purchase group has expanded, and the purpose of purchase has become more rational. The groups that will buy small construction machinery in the future will be mainly: First, leasing companies, construction users do not need to purchase, maintain and store equipment, but only need to obtain the right to use the equipment in the form of leasing when needed; Second, construction units, they buy The equipment is to meet the regular use within the company; the third is the individual project contractor, the purchase of equipment is mainly for undertaking the project. Such customers are particularly large among small excavator buyers, and these individual buyers are likely to develop into rental companies and engineering contractors in the future. With the continuous popularization of small construction machinery, the customer's experience of use is also constantly enriched, and the purchase psychology is becoming more and more mature. Therefore, economical and practical products with high cost performance will be more favored by the market. While customers are more and more demanding on product quality, Higher requirements are also put on the after-sales service of the products.
The pace of local advantageous enterprises entering the overseas market is accelerating. The price of China's local construction machinery is generally lower than similar products of international suppliers, which has better cost performance advantages and good export competitiveness; the product quality of local enterprises has been greatly improved, which is close to the international level. Products will gain a bigger market overseas, and the export volume will increase day by day; as local companies invest more in overseas markets, the construction of overseas sales and service outlets that have been hindering the export of local construction machinery has also been rapidly strengthened. These All will surely promote the rapid increase of local construction machinery exports.
From the perspective of product structure, small excavators will continue to grow continuously, the growth potential of backhoe loaders is relatively large, and skid steer loaders are relatively stable.
Although the current domestic sales of excavator loaders are only 800-1000 units, among them, exports also account for a considerable proportion. However, from the perspective of the development in the past two years, it is optimistic to estimate that the future annual sales of domestic backhoe loaders will be expected to reach 5,000 units. According to expert predictions, China's excavator market is already at a critical period when the introduction period is nearing its end and the growth period is about to start, with great development potential. In the next few years, its market growth rate should be around 15% to 20%. With the development of engineering construction projects, after 3 to 5 years, the backhoe loader will enter a rapid growth period. China's skid steer loaders have been performing tepidly, and sales have been relatively small. Currently, it is mainly caused by two reasons: first, domestic users have insufficient understanding of skid steer loaders; second, current skid steer loaders and their The accessories are too expensive and exceed the current affordability of Chinese customers. However, as the market promotion of skid steer loaders continues to increase, customers' understanding of this product will continue to deepen, and domestic manufacturers continue to introduce affordable skid steer loaders and accessories that are adapted to China's national conditions. Will heat up quickly.
Second, the problem
In terms of market share, domestic small excavators are mainly dominated by Japanese and Korean brands such as Doosan, Hyundai, Komatsu, and Hitachi, accounting for more than half of sales. After years of efforts by suppliers such as Shanhe Intelligent and Yuchai, local small excavators are gradually expanding their market share. At present, China's local small excavation companies account for more than 30%. However, the current problem is that although local suppliers have advantages in price and cost, the technical level, quality, and reliability are uneven. Only a few companies are close to the international advanced level in quality and technology. This is mainly the majority of domestic The establishment of the enterprise system is relatively settled.
And in the marketing of small construction machinery, companies also have considerable confusion. Only by solving these problems of the enterprise can the entire small construction machinery market develop more fully.
1. Is it construction machinery or agricultural machinery?
At present, small construction machinery mainly refers to small loaders, small excavators and small backhoe loaders. International brands occupy the high-end market, while domestic brands occupy the low-end market. Because the main customers of such products are in the rural areas, the product configuration is low, which distinguishes it from traditional construction machinery. In fact, there is no strict division of this type of construction machinery products, and the division of the industry should keep pace with the times. The so-called 'rural construction machinery' is actually the fusion of three machinery sub-industries of traditional construction machinery, agricultural machinery and construction machinery. More precisely, it is the fusion between the edge products of the three sub-industries. This can be seen from the manufacturer's industry attributes. The products cannot be called rural construction machinery because they are mainly used in rural areas, but should also be classified into the category of construction machinery, except that the small construction machinery for the rural market at the present stage is a low-end product among construction machinery products.
Accurate product positioning is directly related to the development of the enterprise and the entire industry. Despite the complicated background of domestic small construction machinery manufacturers, they are more pursuing construction machinery industry standards in product manufacturing, which is obviously different from agricultural machinery.
2. Is the main battlefield in the countryside or in the city?
In developed countries in Europe and America, the application of small construction machinery is generally municipal maintenance, which belongs to the category of maintenance equipment. In China, small construction machinery has also developed for many years, but the overall speed is slow, mainly because most cities are still in the construction stage, and the demand for small equipment is limited. However, with the development of the rural economy, such products have provided a very broad space for development. From the actual situation, the reason why the rural market favors such products is because: (1) a large number of young and middle-aged people go to work to cause a shortage of rural labor; (2) the cost of labor increases; (3) compared with cities, rural projects are small and scattered; (4) users purchase strength Poor.
Therefore, in the eyes of rural users, such products are not only good, but also affordable. Of course, the demand for small construction machinery in cities has also increased in recent years, but compared with the rural market, the total demand for cities is significantly less.
3. Do we need to develop more varieties?
Compared with large and medium-sized construction machinery, there are a lot fewer types of small machinery, mainly loader, excavator and backhoe loader. The demand for construction machinery in the rural market is concentrated on farmland, water conservancy, construction and other aspects, mainly earth-rock shovel loading and unloading, and products such as small loaders, excavators and backhoe loaders can meet the current market demand. However, there will not be a large amount of demand for other types of construction machinery for the time being. Even if there is a demand, it will be easily replaced by large and medium-sized construction machinery, such as road rollers and bulldozers. However, in the long run, the large demand for such products in the rural market is temporary. With the expansion of the rural construction scale and the increase in farmers' income, the demand for construction machinery will diverge, and the proportion of large and medium-sized construction machinery Will gradually improve. In response to the needs of the rural market at this stage, manufacturers should focus on detailed research, find out more market segments, and develop and develop better to meet the market segments. I want to determine multi-functional quick replacement tools to achieve one machine with multiple functions. Benefits are magnified.
4. Do I need to improve the configuration level?
Until today, small construction machinery has been neglected by many manufacturers with a certain scale. In their eyes, they do not look at low-end small-scale products at all. Domestic small construction machinery does have the problem of low configuration level. The power and chassis are basically components of tractors or small trucks, and there are no special components. It is a long-term process to improve the configuration level of domestic small construction machinery, because, due to the current level of rural economic development, purchase and use costs are the key factors considered by rural users. Increasing configuration will inevitably lead to rising costs. Drinking ammunition exceeds the user's ability to bear, which is equivalent to giving up the market. The use of tractor or minivan components may be an optimized solution for small construction machinery at this stage, achieving a harmonious state between cost and performance. 5. How to establish purchase and sales channels?
Since small construction machinery is the meeting point of the three machinery sub-industries of construction machinery, agricultural machinery and construction machinery, the product use and adaptation are very wide. Manufacturers and distributors also come from the three sub-industries, and they have their own familiar channels. Now they produce and sell the same products, which leads to huge challenges for companies in the construction of student channels. At present, the main sales channel of small construction machinery is the agricultural machinery channel for two reasons: one is that the sales target is mostly the farm machinery channels that the farmers are familiar with; the second is that most small construction machinery manufacturers are from agricultural machinery enterprises. Over the years cooperation with agricultural machinery dealers, they are already very familiar with each other. In contrast, construction machinery channels and construction machinery channels are complementary sales channels, which are helpful for increasing product coverage, but it is difficult to obtain satisfactory sales, because both lack sufficient user resources and outlet resources. The concept is also different. Therefore, when constructing channels for small construction machinery manufacturers, agricultural machinery channels should be preferred. The outlets of agricultural machinery channels are close to rural users and can not only provide products and services nearby; moreover, many components of small construction machinery and tractors and small trucks General, agricultural machinery outlets have more advantages in the spare parts reserve.
6. Can we only adopt low price competition?
price competition has two premises: supply exceeds demand and the product is highly homogenized. These two points already exist in the current domestic small construction machinery market. Most small construction machinery manufacturers are relatively weak in terms of technology, production capacity and marketing ability. In addition to price competition, it is difficult to develop other forms of competition. Moreover, price competition is a means that these enterprises can easily achieve and see results. In addition, rural users are accustomed to saving money on purchase costs. The requirements for products are very low and can be used; plus the low technical content of the product, maintenance personnel, accessories and maintenance technology are relatively easy to obtain from the society and other reasons The objective environment also encourages enterprises to participate in low-price competition. We do not oppose low-price competition, which can effectively combat opponents and increase the market share of our products; however, we do not advocate low-price competition without strategies. If companies do not 'combine', they will only lower prices. One move, it will be a very dangerous loss. In fact, in addition to price competition strategies, enterprises can also adopt differentiated competition strategies, considering both product differentiation and service differentiation.
7. Choose big dealer or small dealer for cooperation?
The size of the distributors to choose depends mainly on the company's development goals and financial strength. If you want to be able to quickly achieve higher sales performance, large dealers with strong digestion ability are undoubtedly the best choice. If you want to be stable and aim at establishing a long-term market, it is more appropriate to choose a small dealer than a large dealer, because small dealers are generally rooted in the local area and have more emotional contact with users; and small dealers Is weak in negotiation and easy to control. If funds are tight and hope to return funds quickly, large dealers can help companies achieve this goal through 'large buyouts', but the price they pay is reduced profits. If the financial strength is strong and can withstand a relatively long payback period, choosing a small dealer can make more profits because the company has a say in the price.
8. What kind of distribution model is suitable?
For small construction machinery,The distribution model is mainly one of its own distribution and multiple distribution. Because these products have both high-volume target requirements and close user requirements, the author recommends that general companies choose their own distribution model in small areas, basically dividing the area by county and setting up in each county A distributor, especially established a secondary distribution network in townships. The advantage of this is that the distribution level is reduced, which helps to increase the profit level and the enthusiasm of the dealers. The second is that the outlets are dense and the management is easy to reach each outlet, which helps to increase sales.
9. Do you want to sell in full or installment or mortgage?
The selling price of domestic small construction machinery is generally not more than 100,000 yuan. The payment pressure of users when buying is not too large, and they have the conditions for full sales. It is understood that full sales are the current mainstream sales form of domestic small construction machinery in agricultural machinery channels. Whether manufacturers, distributors or users, they are already accustomed to this approach. The installment payment and mortgage sales that are very common in the construction machinery channel are rare here, because installment payment increases the cost of both parties to the transaction, and it is difficult for dealers to obtain additional profits by collecting management fees.
10. What kind of after-sales service is required?
Most small machinery companies are used to outsourcing after-sales service to distributors, and deduct service fees or periodic settlement service fees directly from the payment. In addition, the company's support for distributors is mainly to provide three guarantees of accessories for free, but there is very little service management for distributors. The reason is that in addition to the limited financial strength and management capabilities of the company itself, the key is that the company subjectively believes that such products are easy to repair and maintain, and accessories are also easy to obtain, and there will be no major problems. It is this misconception of inaction that has caused many brands of small construction machinery to be unsatisfactory in after-sales service. Manufacturers are reluctant to invest, and dealers are even more reluctant to invest. The quality of service users can imagine. Compared with agricultural machinery that tractors and other rural users are familiar with, whether it is operation, maintenance or repair, small construction machinery poses many obstacles for rural users.
The rapid development of small construction machinery in the rural market has brought rare opportunities to all construction machinery manufacturers. The marketing confusion is caused by our unfamiliarity with the rural market and rural users. Therefore, deep understanding of rural users in the rural market has become a compulsory course for every small construction machinery manufacturing enterprise, and it is urgent.