Diesel Filter,Diesel Fuel Filter,Petrol Filter,Fuel Pump Filter Ruian Shengming Auto Parts Co., Ltd. , https://www.shengfeiercar.com
This is a recent argument thrown by an overseas media. However, after tracing the source of this new vocabulary, the reporter found that Harvard Business Review published an article two years ago entitled "China's "good enough" new battlefield. .
The so-called "good enough" is not necessarily the pursuit of perfection, as long as the product is reliable enough, the price is low enough, it can attract the rapid growth of the middle-income consumers.
In the past, in the Chinese market, multinational corporations dominated the narrow high-end market, exploited huge profits and grew rapidly; local companies locked in the low-end of disorder and earning meager profits for development. Between the two is the "good enough" mid-market that is rapidly expanding.
The article pointed out that for enterprises that want to occupy, maintain or expand in China, they must seize this new battlefield. Of course, the term also applies to local Chinese companies. They have developed and launched "good enough" products, have replaced some of the high-priced imported products, and threatened previous high-end overlords.
Although limited by the scale and influence, the 10th BICES, which has just ended in Beijing, has already demonstrated this trend incisively and thoroughly. Caterpillar-led European and American engineering machinery giants not only missed the show, but also several foreign brands that came to the exhibition were overwhelmed by the strong camp of local brands.
"This market will be the arena for multinational companies and local Chinese companies to compete in melee, and global leaders in the future will also rise from this market segment," Harvard Business Review said.
Foreign companies "bend over"
A message in August 2009 had to draw attention.
Caterpillar announced that it will offer simplified and lower-priced products to increase sales in the low-end market. The “proud†world engineering machinery overlord began to lean over and pay attention to the growing market of developing countries.
Caterpillar bulldozers, excavators, and other earth-moving machines have high durability and reliability and are therefore very expensive in the United States and Europe. However, its high-quality products are not popular in developing countries such as China, and buyers generally consider cost factors and choose medium-priced products.
"Adjusting the market position in developing countries and clearly shifting to the mid-range region." This has become the current "wise" choice for European and American construction machinery giants. It is said that Liebherr, a German construction and mining equipment manufacturer, has also made changes to try to expand sales of low-priced machinery in developing countries.
At the same time, in 2008, Doosan introduced the loader business to China and was interpreted by some people in the industry as an expansion from the high-end excavator to the middle-end loader market.
In China, local companies led by Liugong, Longgong and Xiagong have reached the world's highest production capacity and scale. And, its inexpensive products are constantly being sold around the world. Coupled with a group of SMEs engaged in loaders, the market is saturated, and its price advantage makes foreign brands difficult to reach.
However, Doosan Infracore (Shandong) Co., Ltd. acquired Yuhua Machinery in June 2007 and held a ceremony in March 2008 in the Chiping Economic Development Zone. On December 8, the first loader was delivered. According to reports, the company plans to build it in three phases, with a total investment of 1 billion yuan, and an annual production capacity of 25,000 loaders. It will become Doosan's international loader production base.
During the exhibition, although the staff of Doosan’s marketing department denied the claim that Doosan’s products were moving from high-end to mid-range, she also told reporters: “Doosan’s strategy is to enter the top three globally. To achieve this goal, we must do a good job of excavators. At the same time, it must enter the loader field, because if it can reach 10,000 units of sales each year, the entire company's sales will be close to the third place in the world."
In the eyes of some people in the industry, the strategic transformation of these traditional giants is not only because developing countries such as China account for more than half of the annual sales of construction machinery in the mid-range market. According to US media reports, the construction machinery market in the world in 2009 was significantly higher. Shrinking, many traditional giants are already at stake.
According to the news, as of now, the world’s hegemony of the concrete machinery industry, Putzmeister (Elephant), has zero sales in the United Kingdom and the United States, and in its most important market, Spain, this year it has only single digits. Sales.
Industry insiders told reporters that although elephants need a certain transition period due to the replacement of the chairman, their sales revenue in the global market is currently less than 50% of the same period of last year, and serious losses are inevitable throughout the year.
The impact of the international financial crisis on the global construction machinery market is undoubtedly enormous, but it has been more intense in developed countries such as Europe and the United States. However, in contrast, the Chinese construction machinery market is full of impetus.
Internal enterprises "high chest"
Chinese engineering machinery companies frequently attacked the high-end market, which is one of the reasons for these international giants to explore the mid-range market.
In recent exhibitions, the focus displayed by Chinese construction machinery companies to the audience has shifted to large-scale, intelligent, environmentally friendly, and full range of products. This really surprised foreign companies.
Take this BICES as an example. The local Sany Group in China ranks first among all exhibitors with 47 products and an exhibition area of ​​5,850 square meters. A bright red color is very eye-catching. It has created the world's first 72m pump truck with the "longest boom length" and "largest concrete pumping displacement".
According to report, Sany Group launched a concrete pump truck with the longest boom length in the world two years ago, and its height reached 66 meters. One year later, the record was rewritten by an elephant 70 meter pump truck. However, soon, Sany launched the 72-meter pump truck that created the world record. In the words of Sany Heavy Industry’s president, Wenbo, this is a dare to clamour for the strongest, and they must be convinced.
In fact, in the concrete machinery industry, Zoomlion has become famous overseas because it acquired the third-ranking Italian Safaris company in 2008. At this exhibition, a new concrete pump truck from Safa has appeared before everyone. According to insiders, Safa has already started to make profits. While demonstrating its continuous improvement in manufacturing capabilities, Zoomlion also shows that Chinese companies have become more mature in global cooperation and have expanded their capabilities and control.
While Sinopec Corp. and the 31st company firmly occupy China's largest concrete machinery market in the world, at the same time, their frequent exploitation of overseas markets has caused strong unease among European concrete giants. It is said that elephants have also begun to establish a targeted financial leasing system and hope to strengthen the sales of products.
XCMG is the largest supplier of construction machinery in China. Although this exhibition did not make every effort to attack, the heavy crawler cranes and bridge machinery used in railway construction are very representative. According to insiders of the group, XCMG’s sales of 500 billion yuan this year are just around the corner.
At present, excavators are among the main products of China's construction machinery, and are relatively weak. However, this situation has begun to change. Local engineering machinery companies such as Liugong, Sanyi, Yuchai, and Shanhe Intelligence are gradually increasing their market share. According to the latest statistics from the China Construction Machinery Industry Association, the excavator sales of domestic brands have approached. 30% of the total market. More optimistic people predict that this proportion will increase to 50% within 3 to 5 years.
Analysts pointed out that after rapid development in recent years, China's construction machinery companies rely on the rise of overall strength, and are gradually occupying the mid-range local market and selling products to emerging markets in the world, even developed countries in Europe and America. At the same time, after the baptism of the international financial crisis, China's production of cost-effective products will play a more important role in the future of the world's construction machinery market.
Chinese genes
The exploration of the strategies of some multinational companies and the continuous upswing of Chinese companies will lead to more intense homogenization of competition in the mid-end market. This may be a more pessimistic judgment, but it is very likely to become a reality.
Especially in the case of the international construction machinery market has not yet recovered, multinational companies are bound to pay more attention to emerging markets such as China.
The reporter learned from the exhibition that Terex, the world's third-ranked construction machinery manufacturer, announced that it will further increase its investment in the Chinese market, and the industry speculated that it might set off another round of mergers and acquisitions boom. On the eve of the opening of the exhibition, the Terex Global Work Conference was held in Beijing. A number of executives came to China and promised to establish R&D and accessories centers in China.
In fact, world-renowned construction machinery companies have long entered the Chinese market, and many companies have established wholly-owned or wholly-owned production plants in China. Many people in the industry once described it as a warring nation that competed in groups.
However, Xiagong’s new president, Cai Kuiquan, told reporters that Chinese companies have confidence and ability to deal with this challenge.
He said that construction machinery with foreign brands has advantages in terms of reliability, but high prices are their fatal disadvantages. If Chinese users consider from an economic point of view, they will never buy their products. Although there are many deficiencies in technology, performance, appearance, etc., as long as Chinese companies continue to strengthen research and development and cooperate with each other, I believe they will grow up.
"More importantly, we hold the world's largest construction machinery market in China," said Zhang Jianguo, president of Zoomlion, to reporters. This is a "granary" for Chinese companies, but they do not.
An insider who is familiar with the market told XCMG that it is now much more difficult for multinational companies to enter the Chinese market than before. First of all, here is now a very free arena. Everything depends on the quality and economy of the product. Second, foreign-funded enterprises can hardly establish a marketing and parts service system in China with domestic companies. Finally, the users in China gradually Toward rationality, the era of once stubborn pursuit of foreign brands will soon pass.
In Cai Kuicing's view, the future export market of China's construction machinery is quite impressive. He predicted that after 5 to 10 years, the share of Chinese construction machinery products in the world market will reach 30% to 40%.
In fact, this reflects the growing role of Chinese genes in the field of construction machinery.
“In the early days when foreign capital entered China, our own construction machinery industry was still weak, and product standards and even the “rules of the game†were all set by them. But we should now think about whether this rule is suitable for China in the end.†Xu Jiang Technology A person told reporters.
Zhang Jianguo believes that, to a certain extent, the so-called “good enough†Chinese construction machinery is a product that meets the needs of users as the ultimate goal and is guided by market demand. This will be a trend in the future. Global construction machinery manufacturers compete in the mid-market
Global construction machinery manufacturers compete in the mid-market
"Good Enough" engineering machinery products have already established a foothold in China and gradually spread to all parts of the world.