Competitive strategies for overseas markets are becoming leading companies
At this stage, the continued development of Chinese companies' overseas markets has also driven the strength of the construction machinery industry's products to some extent. Data show that in March this year, XCMG brand exports exceeded 100 million US dollars.
Data from Liugong shows that there is a strong demand for infrastructure in countries along the “Belt and Road”. In 2018, Liugong continued to advance the pace of internationalization and adhered to the "One Belt One Road" development policy.
The countries along the “Belt and Road” have basically achieved full coverage and reached 85% coverage in 65 core countries. It is understood that the company continued to adopt marketing strategies focusing on core countries and key customers overseas, bringing new sales growth points. In 2018, the company's total overseas sales revenue increased by 30% year-on-year. Among them, overseas sales of excavators increased by 37% year-on-year, and sales revenue increased by 41% year-on-year.
In response, Zeng Guangan, chairman of Liugong Group, said in an interview with the media not long ago that in the past few years, Liugong's market outside China has been growing. The “Belt and Road” initiative is not only important to Liugong, it is also important to all “Belt and Road” countries. Therefore, for Liugong, more areas will be covered in the future.
There is never a shortage of companions on the overseas journey. Although Sany pioneered overseas markets earlier, it seemed as difficult as it was successful. At present, Sany Heavy Industry is also constantly adjusting its strategic focus, trying to accelerate the high export growth by international means by strengthening the operation of overseas markets and opening up the company's long-term growth space. Specific details include accelerating the internationalization strategy, accelerating the company's response and service capabilities in overseas markets, the agency system, service accessories system, and financing risk control system.
As a major export product overseas, SANY excavator products exported 6,392 units in 2018, a year-on-year increase of 67.33%; and from January to March this year, exports of 1,934 units, a year-on-year increase of 49.34%, continued to maintain high growth. Some analysts pointed out that the company is looking forward to the expansion of overseas markets and opening up long-term growth space, while the continuous increase in export revenue is expected to smooth the impact of domestic cycle fluctuations.
Global market demand has entered a new stage of growth as a whole
At present, the concentration of the construction machinery industry is constantly increasing. The growth rate of sales of construction machinery products of leading enterprises outperformed the overall growth rate of the industry, and the market share continued to rise. Increasing the concentration of the industry is of positive significance for improving brand influence and competitiveness in overseas markets. However, at the same time as Chinese companies continue to make new breakthroughs overseas, the global construction machinery giant has also shown a good transcript.
Not long ago, the Liebherr Group announced operating data for the financial year 2018. The Group's 2018 turnover was 10.551 billion euros ($ 11.85 billion), a year-on-year increase of 7.5% or 739 million euros ($ 830 million). Among them, construction and mining equipment segment sales increased by 10.8% to 6.833 billion euros (7.73 billion US dollars). The growth of mobile cranes, earthmoving and mining equipment has driven the sector's outstanding performance.
Relevant statistics show that Caterpillar's total sales revenue for the first quarter of 2019 was US $ 13.466 billion, an increase of US $ 607 million compared with US $ 12.859 billion in the first quarter of 2018, a growth rate of 5%. Earnings per share of $ 3.25, a record for the first quarter, and an increase of 19% compared to the first quarter of 2018 of $ 2.74. The increase was mainly due to increased sales due to increased demand for equipment and services. In addition, sales of construction machinery also increased, while the energy and transportation industries remained flat.
For Volvo, the market performed strongly in the first quarter of this year, with sales up 15% year-on-year. In the first quarter, Volvo Construction Equipment sales increased to SEK 24.1 billion (US $ 2.5 billion), an increase of 15% year-on-year, and operating income increased to SEK 3.646 billion (US $ 381 million), an increase of 26% year-on-year. It increased to more than 23,100 units, an increase of 5% over the 22,100 units in 2018.
It is understood that the reason for the steady growth of foreign brands this time is the stable market conditions in most regions. In addition, higher sales, higher equipment prices and wider product suitability have also positively impacted revenue.
Liebherr said that the main factors driving the growth of revenue in 2018 came from increased demand in the European market, especially the renewed growth of the German economy and the positive performance of the French and British markets. Other notable active contributors are the United States, Australia, and China. Looking ahead, it is expected that sales revenue will increase further in 2019, and there will be no signs of the upcoming economic recession.
Construction machinery is undergoing a new round of recovery
In the second half of 2011, the original hot market suddenly turned around and went down. This situation has been maintained for five years. During this period, the entire industry was cold, and overcapacity and disorderly competition filled every corner of the competition. Today, there are also signs that this momentum is likely to make a comeback. For this reason, some people in the industry have warned that the emergence of unfair competition may cause the sales growth rate to slow down. For this reason, construction machinery companies should effectively raise their vigilance. In addition, some people in the industry have said that the Sino-US trade friction and the RMB exchange rate issue may affect the development of overseas markets.