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Deeply plough the market steadily and steadily, Liugong internationalization has become an industry example

deeply plough the market steadily and steadily, Liugong internationalization has become an industry example

China Construction machinery information

recently, the eighth international infrastructure investment and construction Summit Forum was held in Macao. The theme of this forum is "jointly building diversified innovation, industrial linkage and sustainable infrastructure". Each summit is a grand event for many infrastructure enterprises and equipment enterprises under the impact of the punch, and Liu Gong is also one of the participating enterprises. Zeng Guangan, chairman of Guangxi Liugong Group Co., Ltd. and Guangxi Liugong Machinery Co., Ltd., was invited to attend the forum and delivered a speech on the reliable stability table

rebound reversal

data show that China's excavator sales totaled 63433 units from January to April 2017, with a year-on-year increase of 73.5%, of which 18676 units were sold in April. After three years of downturn, excavator sales began to show a "blowout" trend. Its sales volume in the first four months has reached a new high in the same period since 2013, and is close to the same period in 2012. March to may has always been the peak season for infrastructure construction. The data shows that the average operating hours of excavators in March to April this year is 150.3 hours, and the overall operating rate remains at a good level, showing a relatively vigorous downstream work volume. In April, the year-on-year growth rate of large-scale excavation was 168.6%, with a year-on-year growth rate of more than 100% for four consecutive months, indicating that the demand for mine infrastructure still maintained a good trend

judging from the current sales data, the growth of excavators has not rebounded from the bottom, but formed a "V" reverse trend. Zeng Guangan said in an interview that the first quarter of 2016 was the lowest period in the whole industry. For now, the rebound in 2017 was very strong. Excavators have seen signs of growth since July last year, with an average increase of 70% in the last four months of last year. The sales of excavators doubled in the first quarter of this year. It is estimated that the annual sales volume of excavators this year will be about 100000 ~ 110000

at present, the "V" reversal of the industry as a whole is mainly due to several factors:

first, after more than five years of decline or recession, the market itself has an internal force to rebound

secondly, China is facing a new normal and a new economy. Driven by a series of central policies, the effect of capacity reduction is remarkable. After a year of adjustment and reaching a new balance, new market demand has also emerged

thirdly, any investment has periodicity and regularity. Last year was the starting year of the 13th five year plan, and this year is the most important year for real investment in the 13th five year plan. Funds and projects are in place, and large projects such as high-speed rail, expressway and rail transit have a certain boost to the market

then, the adjustment of raw material market. Iron ore, coal mines and other metal mines. After nearly a round of global economic adjustment, the inventories of coal and iron ore have also slowly digested and reached a new balance point

finally, the impact of industry foundation. From 2009 to the first half of 2011, the whole industry has accumulated a large number of market holdings, which are gradually withdrawing from the market after five to six years of development. For example, the service life of excavation machinery is generally about fiveorsix years, basically no more than 8 years. The production efficiency and cost are relatively high, and some loaders may be replaced after twoorthree years. In the global construction machinery industry, China and the Asia Pacific region have maintained relatively steady development

sales and marketing

Liu Gong has maintained good performance in overseas markets for many years. In this regard, Zeng Guangan frankly said that export and international marketing are two different business concepts and business models. International marketing is to make a tree good, and then turn it into a forest

to do international marketing is to make Liugong's products and technologies better meet the market needs of local customers. At the same time, we should build Liugong's after-sales service system, and then build a good brand, service agents, and cultivate customers. Among them, the core is whether Liugong's products, services and systems can guarantee the value of customers and create more new value for customers

at present, the reason why Liugong's products can't be started up next time due to improper use by customers last time covers more than 380 dealers and 4 overseas factories in 115 countries around the world, especially in countries along the "the Belt and Road". In this regard, Zeng Guang'an told that the overall coverage of Liugong's "the Belt and Road" may be relatively high among Chinese enterprises, and it is ahead of schedule. The "the Belt and Road" initiative was proposed in 2013, and it has been several years now. Therefore, the "the Belt and Road" is also the key international market of Liugong. For example, the 10 ASEAN countries, Liugong basically spent three years, ranking second in the market as a whole. In India, Liugong is one of the best performing enterprises, including Liugong's factory and industrial chain

for the future international development, Zeng Guangan said that the development of the "the Belt and Road" in the next few years is very good news for Liugong. First, all aspects of Liugong's existing market and channels have been connected; Second, Liugong has maintained a sustained development trend in major markets. For example, it has developed well in central and Eastern Europe and even Europe. Now Liugong focuses on Southeast Asia, South Asia and Western Europe. Due to the relatively backward economic development and weak growth in central and Eastern Europe, Liugong's current main market is in Western Europe, such as making loaders and excavators in Poland, and selling its products to the Western European market. However, Liu Gong believes that Russia still has potential. If politics and other aspects are stable, Russia is still a promising and long-term strategic market

a key factor for the success of Liugong's internationalization strategy is that the international supply chain can carry out complex data analysis earlier. In 1995, the joint venture with Germany was very successful. Liugong also attaches great importance to cooperation with foreign enterprises in key technologies and parts. For example, in the cooperation with Cummins, Liugong attaches great importance to the cooperation of quality, technology and parts

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