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Self comparison madman and fool excavator industry is in urgent need of self salvation

self comparison madman and fool excavator industry is in urgent need of self salvation

China Construction machinery information

Guide: competition has always been the main theme of the development of China's construction machinery market, which has not only created the glory of the construction machinery industry for more than 10 years, but also the associated vicious competition has caused the disordered development of the industry to a certain extent: the low price fight of homogeneous products, Low standard or even zero down payment purchase conditions make people

competition has always been the main theme of the development of China's construction machinery market, which has created the glory of the construction machinery industry for more than 10 years, and the accompanying vicious competition has led to the disordered development of the industry to a certain extent: the low price fight of homogeneous products, low standards and even "zero down payment" purchase conditions, and the astonishing speed of new product development, And even the almost unscrupulous fierce competition from customer information to overseas mergers and acquisitions... All these things, to name a few

it can be said that chaos and frequent problems have been accompanied by the rapid development of China's construction machinery industry in recent years, and people in the industry who are "in this mountain" have also felt that the development of the industry is farther and farther away from the health requirements

From a market perspective, moderate competition can promote the survival of the fittest and realize the optimal allocation of production factors. However, how to make the Chinese construction machinery market return to a rational state has become an industry problem

in early April, the excavation machinery branch of China Construction Machinery Industry Association officially issued a warning letter on improper competition in the market of China's excavation machinery industry at its station and middle school

it was mentioned in the letter that the branch recently found through market research and visits that under the condition that the overall environment of China's mining machinery industry is still severe, some leading manufacturing enterprises have adopted the sales policies of reducing prices, extending the warranty period and lowering the down payment, which have the tendency of excessive competition, seriously disrupted the market order, increased the overall business risks of the industry, and affected the stable, rational and orderly development of China's mining machinery industry

according to a Weibo friend nicknamed "construction machinery boss", the appearance of this warning letter is related to the disclosure that a 22 ton new excavator of a brand he released a few days ago was introduced to the market at a price of 595000 yuan

the author then checked his microblog, which contained the promotional screenshot of the brand's excavator. In the screenshot, "the group purchase price of a product with model ld6220d was only 595000 yuan in April, and it was emphasized that this was the only shocking price in the industry, and the price of the same model and quality in the market was about 830000 yuan."

the blogger was amazed. He threw the 22 ton new excavator to the market at the price of 590000 yuan, and let the price difference of 30000 yuan to the agent. Is this a crazy rhythm? However, other friends commented that this may be the independent behavior of the enterprise, and it is a way for the enterprise to consider and inventory

but it is certain that the behavior of the enterprise is not unique. The author called lihongbao, Secretary General of the excavation machinery branch of China Construction Machinery Industry Association, and learned that the above excavation incident was not the only reason for the branch to issue a warning letter. In Li Hongbao's view, the active involvement of foreign capital may be related to the once 50% market share of domestic construction machinery brands. More importantly, perhaps these foreign brand manufacturers have realized that after several rounds of price wars and high-risk sales strategies, the development momentum of domestic excavator enterprises has ceased. Therefore, they will sacrifice the weapon of price during this period, hoping to give a final blow to their competitors

after the craze

the root cause of this is the serious overcapacity. The 10 years before 2012 was the period of rapid development of China's excavators. Especially in 2010, driven by the domestic demand policy of 4trillion yuan, almost all construction machinery enterprises launched the production line of excavators overnight, with a production capacity of at least 1000 units, and more than 100000 units. All kinds of capital fell from the sky, working overtime, working fast, for fear of slowing down

at that time, the illusory demand of the market was on the one hand, and the manufacturing was in full swing on the other. All participants were convinced that the high profits of the excavator industry were enough to resist all kinds of risks

however, the good times did not last long. As the market demand was advanced, the dreamlike demand in the domestic market suddenly disappeared after the enterprise's production capacity was expanded. Although every construction machinery enterprise is trying to explore overseas markets, the capacity of overseas markets is limited in the global economic recession environment, and China's construction machinery overcapacity seems to become an unsolved topic

therefore, in order to absorb the serious excess capacity, all construction machinery manufacturers have implemented more radical business policies, such as zero down payment, installment payment, etc., which makes the originally high financial risk more difficult to control. At the same time, as a result of excessive competition in the whole industry, many enterprises and dealers are struggling on the edge of life and death

as an agent, Yang Chisheng, chairman of Beijing hengri group, once described that the current market chaos is a group of madmen with a group of fools fighting and rushing

injured insider

Yang Chisheng said that when agents have too much inventory, manufacturers ask them to send BMW and Mercedes Benz for promotion; When the market is depressed, agents have to ask manufacturers to save them. In fact, the more depressed the market is, the more agents and manufacturers should work together to tide over the difficulties, rather than shirking each other. Otherwise, both sides will swallow the bitter fruit of the market

sunzhaohong, chairman of Anhui Liyuan construction machinery company, agrees with Yang Chisheng very much. He believes that the previous business model determines that agents are eating the bitter fruit they planted yesterday. Therefore, to deal with this excessive competition, we can no longer rely solely on self-discipline, but need to completely eliminate it

Xue Zhong, general manager of Jinan pangolin Construction Machinery Co., Ltd., has his own view, "the market has always been in a state of disorderly competition. If the last six excavator brands are eliminated from 60 excavator brands in the future, the market may compete in an orderly manner. At the same time, I think the relationship between manufacturers and agents should be a 'relationship between husband and wife', which requires mutual encouragement and common progress."

therefore, he believes that disordered competition is a necessary stage for the market to move towards a rational state. The core of the problem now is that there are too many brands, which is the source of overcapacity and disordered competition. If this problem is not solved, it is unrealistic to talk about rationality. "Compared with us, as a result of disorderly competition, users are the most unlucky and vulnerable. Why? For example, some customers, if they didn't want to buy equipment at first, but were tempted to buy a Mercedes Benz car as a gift, crowded into the market. While some of the original customers in the market originally operated well, suddenly many friends around them began to buy excavators, and the purchase price was cheaper than him, and then the yield of these customers would soon change As a result, it will be more difficult for all people who make money from projects. "

Li Hongbao holds the same view on the statement that users are also victims. He believes that the preparation is insufficient, and the hasty entry has put a huge debt pressure on many excavator users to enter the industry. However, due to fierce competition, many users did not pay attention to identification at all when contracting projects. As a result, they were cheated into "illegal work", which not only did not earn money, but also inversely pasted various start-up costs such as fuel costs, making their living conditions worse

although the sales are sluggish and the profits are diluted, few brand construction machinery manufacturing enterprises are willing to take the initiative to withdraw from this stage. "Although the profit is thin, little is better than nothing. More importantly, we can take this to maintain the stability of the sales team, otherwise we can't retain people now, and it will be late to recruit people when the industry recovers." Industry insiders generally hold this view

however, there are signs that due to the introduction of the new urbanization plan, the high gloss black spray free materials in the construction machinery industry in 2014 can provide common or toughened PMMA, pmma/asa alloy, ASA, pc/asa alloy and PC and other materials, and the program has started well

according to the statistics of China Construction Machinery Industry Association, the cumulative sales volume of excavator industry from January to February 2014 was 13943 units, with a year-on-year increase of 26.1%. From the perspective of product structure, the cumulative sales volume of small excavation from January to February increased by 42.3% year-on-year; The total sales volume of big excavation increased by 31.5% year-on-year (a sharp decline of 64% in the same period last year); The cumulative sales volume of China excavation increased by 10.1% year-on-year

according to the report of Bank of America Merrill Lynch, in March, the sales volume of Sany excavator was the same as that of H unloading 0 - the free arc height ratio increased by 1.2% to 3109 after the third loading and unloading; Caterpillar excavator sales in China increased by 18.6% to 1852 units; The sales volume of Volvo excavators in China in March decreased by 12.5% year-on-year to 1117 sets, and the sales volume of the whole mining machinery market decreased by 7.8% year-on-year

however, some experts pointed out that the excavator sales data increased significantly in February this year, mainly due to the low base and the Spring Festival. It is reported that the sales volume in February 2013 was the lowest since 2008, only 29.5% of the peak in 2011. The cumulative sales volume from January to February 2013 was the lowest since 2010, only 34.9% of the peak in 2011. Due to the sufficiently low base effect, from January to February this year, although China's excavator industry increased by 26.1% year-on-year, it still reached only 44.0% of the peak

the excavator market performance in March can only be said to be a seasonal recovery, and most enterprises said that they did not meet the expected value. However, from the sales situation from January to March 2014, the share of domestic brands has rebounded, increasing to about 42%, which also confirms that the trend of replacing imports with excavators in China is still continuing. At the same time, from January to March, China exported 1693 excavators, with a year-on-year increase of 85.64%, which was quite excellent

the chemical stability, health and safety, gas resistance and mechanical properties of polypropylene materials in the city are good. The arrival of warm air is undoubtedly a good signal for the struggling enterprises and agents in the past two years. From the feedback of enterprises, it can be learned that the inventory problem of major excavator manufacturers is no longer a problem, and production is gradually on the right track

but another big problem came out sharply, that is the second problem. Due to the huge stock, in many places, the second replacement has caused a great impact on the sales of new machines. In this regard, Li Hongbao reminded manufacturers and agents to be cautious

what is certain is that the high-speed growth of the excavator industry will no longer be in the future, and the machines that have been sold in large quantities will be the highest risk period of repayment from 2014 to 2015, according to the credit sales model and the calculation of the repayment period of 3 to 4 years

Zhou chijun, chairman of Hefei Xiangyuan Construction Machinery Co., Ltd., also said that the peak of loan repayment is in the second half of last year and this year, and may to October will be the period with the highest risk

he believes that this is more terrible than the "winter" of the market. After all, there will be "spring cold" after the long winter. In the face of loan repayment difficulties, manufacturing enterprises and agents may be unsustainable if they do not plan, reserve and build a flood diversion system early

self redemption

the vicious competition based on market share makes the ecological environment of the industry confusing, and the relationship between the main engine plants, between the main engine plants and supporting parts plants, between the main engine plants and agents is deteriorating. The endless price war and price coordination again and again have put all stakeholders in an embarrassing situation again and again

There is no winner in the price war. In these repetitions, entrepreneurs try to get out of this low-level competitive state. However, after the price coordination is difficult to play an effective role, the construction machinery industry

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