What are the development opportunities for the gap

2022-07-27
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How big is the gap between China's construction machinery aftermarket and foreign countries? Where are the development opportunities

how big is the gap between China's post construction machinery market and foreign countries? Where are the development opportunities

China Construction Machinery Information

although the market is a huge "cake", why do manufacturers and agents generally think that the aftermarket looks big but can't eat

in recent years, as the sales of construction machinery and equipment have reached new highs and the number of them has increased, the demand for business services in the post market has also gradually expanded. Taking the excavator market as an example, the ratio of the potential of post market maintenance and accessories to the price of new equipment in the life cycle is almost 1:1. The post market business can bring enterprises more turnover than equipment sales, and the profit is higher. At present, the post market of maintenance services and accessories has a scale of hundreds of billions, and the second-hand equipment and leasing market has reached a scale of trillion and can meet the construction technical specifications. The post market of construction machinery has become a business segment that can not be ignored

however, compared with the mature construction machinery market in Europe and the United States, the problems of low operating level and insufficient competitiveness of domestic enterprises need to be further improved and explored

the gap is obvious, and the domestic post market profit is low.

in the traditional market of the construction machinery industry, maintenance and accessories are treated as passive after-sales service after equipment sales. Now, the OEMs operate them as a new business model, and form a second post market development business on the basis of the development of the whole machine business

the fractal innovation of this mode not only injects new growth power into the development of the main engine plant, but also makes the development of the agents more balanced. When the complete machine market fluctuates greatly, the revenue of the post market ensures the survival of the agents. The business of the post market is mainly affected by the equipment ownership and operating rate, which is much smaller than the fluctuation of the complete machine market

two thirds of the profits in mature markets in Europe and the United States came from the post market business

at the end of 2016, the overall production capacity of the power battery industry exceeded 80gwh. In mature markets in Europe and North America, enterprises attach great importance to the development of the post market, which is an important link for engineering machinery and equipment manufacturers and agents to realize the service premium. The golden section of the profit structure pursued by enterprises is that two thirds of the profits come from the post market and one third from the sales of new equipment. In this way, when the new machine sales market declines, the income of the post market is an important guarantee for the enterprise to "survive"

the post market business profit of domestic agents accounts for less than 40%

according to the survey data of China Construction machinery enterprises striving for Market Industry Association for price reduction, in 2020, the whole machine sales business contributed an average of 64% of the operating profit of agents, and the post market business profit accounted for 36%, including the average 19.9% of the operating profit of the agent group contributed by the parts sales business; The warranty service contributes an average of 9.1% of the operating profit to the agent group; 2. The sales business is in a loss state; Operating lease contributes an average of 3.9% of the operating profit to the agent group; The warranty service and other maintenance services contribute an average of 3.2% of the operating profit to the agent group; Financial services and other businesses contribute an average of 0.9% of the operating profit to the agent group

poor risk resistance, low domestic post market operation level

post market absorption rate (i.e. the ratio of post market income to enterprise operation cost) is an important indicator to measure the post market business operation of construction machinery agents. In the European and American markets, the post market revenue contribution of construction machinery agents accounts for 50%~60% of the company's turnover, and the absorption rate of some excellent agents has exceeded 100%. Even if they do not sell new equipment, these agents can still survive, which gives enterprises a strong ability to resist risks. While China has the largest number of construction machinery and equipment in the world, the market absorption rate after agents is mainly at a low level of 10~20%

according to the survey data of China Construction Machinery Industry Association, in 2020, only 3.2% of the agents have a market absorption rate greater than 60%, 8.8% of the agents have an absorption rate of 40%-60%, 40.0% of the agents have an absorption rate of 20%-40%, and 24.0% of the agents have an absorption rate of 10%-20% and less than 10%

analysis on the competitive pattern of enterprises in the post market of construction machinery

in the field of China's post market of construction machinery, there are mainly three types of participants, including manufacturers and brand agents, parts suppliers, small parts stores and repair shops. There are cooperation and competition between them, forming the core ecosystem of the domestic post market of construction machinery

where is the development path of domestic post market

refuse rigid sales and only operate high priced original parts

in recent years, with the fierce competition of excavators and malicious quotations from peers, the machine shift fee has gone from bad to worse. In addition, due to the impact of environmental protection policies, the aircraft owner strives for survival in the cracks. In this context, equipment owners with more strength naturally reduce the use of original accessories. The manufacturer only allows the agent to sell the original parts, which undoubtedly puts the customer in a dilemma

in this regard, as a parts manufacturer, we should dig deep into the needs of customers. For customers with different needs, we should provide the same level of parts and components that do not allow entrepreneurs to free themselves from tedious routine work for selection

transformation from product driven growth to service driven growth

customer reputation and repeat customers are intangible assets of enterprises. If enterprises only focus on new customers but lose old customers, it is easy to lose more than gain

the post market is an ecosystem established by enterprises around customers. The purpose is to help customers make money, retain old customers, and establish a good reputation. Making money is a natural thing. If you only focus on the money in customers' pockets, whether it is high priced parts or free services, it may damage the ecological environment of the post market and eventually lead to the loss of customers

construction machinery enterprises should lay down their position, pay attention to customer service in the post market while doing well in their products, help customers do more profitable things, and regain customer trust and love

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