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The machinery and equipment industry faces huge challenges

Article source:admin Popularity:time:2017-07-07 16:46

 Since 2010, the growth of China's fixed asset investment has fallen rapidly due to macroeconomic weakness.

The uncertainty of economic recovery in Europe and the us dampens China's exports.
Meanwhile, a rapid rise in China's Labour costs has led manufacturing companies to move to south-east Asia.
These factors have put China's machinery and equipment market under enormous pressure.
In the face of the strife-torn situation, machinery and equipment industry enterprise shall, through the innovative sales method changes the traditional sales model of the past, in the fierce competition, improve efficiency and realize the transformation from the competition to win.
Machinery and equipment companies face huge challenges
China is showing growing weakness in domestic demand and investment.
Over the past five years, China's GDP growth has slowed from 92% in 2009 to 74% in 2014, and there is a tendency to go further.
China's fixed-asset investment, by contrast, has fallen even faster, down from 31 per cent in 2009 to 15 per cent in 2014.
Over the long term, the history of economic development in several countries, including Japan, Spain and Thailand, has shown that investment-led economic growth cannot continue for long.
China's domestic machinery market is shrinking fast because of the rapid decline in fixed investment growth.
Exports have also fallen rapidly, from 31 per cent in 2009 to 6 per cent in 2014.
At present, European and American countries are in the post-2008 economic recovery period after the international financial crisis. Consumption growth is still weak and there is insufficient demand for imported goods.
This has led to overcapacity in some Chinese production companies, further exacerbating the downturn in the upstream machinery market.
As a measure of market conditions of machinery and equipment, the total amount of imported CNC machine tools has fallen for three years in a row.
At the same time, foreign direct investment has fallen rapidly due to the rapid rise in labor costs.
Global manufacturing is shifting from China to southeast Asian countries and India.
China proposed the strategy of "area" all the way to boost domestic manufacturing, but due to the influence is the largest overseas expansion ability of state-owned enterprises, so the implementation of the strategy of domestic manufacturing enterprises in China machinery demand has not yet appeared, the trend of the manufacturing flow may be will continue in the future.
Furthermore, under the influence of China's administrative anti-corruption, the traditional state-owned enterprise equipment procurement process is being impacted continuously.
The process of making procurement decisions will become more transparent in the future as stricter administrative regulations and public scrutiny become more stringent.
Therefore, traditional relationship sales model will be destroyed and will be replaced by sales innovation which ADAPTS to the "new normal".
Three major sales innovations
Under the "new normal", the development of China's machinery and equipment industry is presenting three trends:
First, targeted investment to promote specific industry demand growth.
The future government investment will focus on specific sectors with strategic development prospects, compared with the industry-wide coverage of the "$4 trillion" investment in 2003.
So far, hashing has more than 170 experience centers around the world.
By integrating the hall of machine tools, spare parts warehouse, service convoys and other places into HFO, hashing has caused HFO to adapt to the full function of exhibition, sales, technical support and warehousing distribution.
Because of the channel sink, the sales team of hashing is able to get close to the customers and understand customers' differentiated needs more quickly and provide corresponding equipment and solutions.
The innovation in sales channels has helped Mr. Hashing to expand rapidly around the world, with sales of more than $1 billion in 2014.
Looking into the future, we believe that hashing will achieve close interconnection with customers through channel digital innovation.
Interact through O2O through "the last kilometer" sales process, hash will make full use of the offline form the huge sales network to carry out the user operation, resulting in spare parts sales, cross-selling, precise marketing, supply chain optimization, and many other areas of business expand;
Through data collection and mining of user behavior and preferences, continued sales and profit growth in the future.
Value-added sales based on ecosystem
The price of equipment will become less important in future sales due to the tendency of devices to become generic goods.
In contrast, consumers who benefit from more transparent information and diversified consumption choices will pay extra attention to the full process experience of the product in the process of purchasing.
From the process of manufacturing development, we believe that customers will dominate the supply and demand relationship in the future.
Future consumers expect suppliers to provide personalized buying experiences based on their respective needs, while being able to interact in the way they want to.
To accommodate this change, manufacturers need to get more information about their business models and pain points, while also analyzing changes in customer requirements.
In addition, producers need to provide specific channels to enable customers to give full play to their creativity and participate in product design and improvement.
Existing sales methods and models do not adapt to this change, so it is necessary for producers to adopt a value-added model based on sales ecosystem.
Based on the research of the product life cycle, and found that the traditional consumer just pay attention to whether they can bring benefits in the process of equipment operation, and does not pay attention to early late procurement, installation and upgrade of the updated and equipment resale.
In the future, as customers face more competitive competition, they will become more focused on the value of the full lifecycle of their production equipment.
In order to adapt to this change, equipment manufacturers should gradually establish a cooperative marketing ecosystem.
Through the way of investment, jointly set up subsidiaries, machinery and equipment enterprises shall select partners in the supply chain, to create a strong ecological alliance, so as to lead to higher value for the customer the product service system.
By implementing innovative sales methods, excellent machinery and equipment companies will win the competition in the future and gain a sustainable competitive advantage.