How can enterprises win the disorderly competitive tractor industry?
Tractor industry is the field of concern of the author * *. In 2020, there are more than 200 domestic large and medium-sized tractor manufacturers. The author has counted the market share data of tractor industry in the past years. It is found that the market share of the top 5 in 2010 is 73% and that in 2019 has decreased to 35%, the concentration of the industry is very low, and the whole industry is in disorderly competitive state.
Under the disordered competition pattern, not only the small enterprises are difficult to survive, but also the big enterprises such as Dongfang red and LoVo apos are facing severe challenges. John deer, the global leader of agricultural machinery industry, even withdrew from the competition of medium-sized tractors with a power of 120 horsepower.
The author judges that under the general benefit system agricultural machinery purchase subsidy policy, this disordered competition market environment is difficult to change in a short time. At present, there is no enterprise with the power to stand up to launch the industry shuffle. So in the long-term disordered competition environment, what tractor enterprises can persist in * * and finally become a few winners?
1、 Strong self-control capability of core parts
At present, tractor manufacturers with the largest number in the world, such as John deer, kessnew Netherlands, AGCO, Claas, doytsfar, mahenda and kubaotian, have a common feature: high self-control rate, no self-control rate less than 50%, almost all of them have engines, transmission, axle The self-control ability of the cab and other assemblies or semi-assemblies, some enterprises can even self-made suspension system, braking system, hydraulic system and automatic navigation system.
There are some famous tractor manufacturers in China, including the second and third tier brand enterprises in Weifang, Ningbo and Luoyang. The author has almost all made a field investigation. I find that all enterprises with high market share, stable operation, good reputation with household registration and strong overall competitive strength are all self-made enterprises with high self-control rate of core components, and their operation is unstable, The market performance is sudden or transient, most of the enterprises will uphold the so-called light assets operation, a large number of or even all core components outsourcing.
The reason why Dongfang red, LoVo apos and Dongfeng Agricultural machinery has been among the top three in the industry for a long time is that these three enterprises have strong self-control ability of core components.
When it comes to revobos, there may be objections. Indeed, Foton Lovol also adopted the development mode of light asset operation, light assembly and outsourcing of a large number of core parts, which caused a disaster. Due to the technology spillover effect, Weifang and surrounding areas have generated more than 100 tractor manufacturers, but Lovol realized the problem 10 years ago and gradually recovered the outsourcing parts, At present, Lovol has the self-made capability of the core parts of the engine, gearbox, axle, cab, automatic navigation and other major components. Due to the large number of core parts recycling, it will be very difficult for Foton system to follow Lovol again in the future, and the components of Foton system will no longer be used in general.
The main advantage of self-made core parts is to control the quality status, ensure the timeliness of production and better matching between parts and components, and, of course, protect their core technologies to a large extent, so that the products have a lasting competitive advantage in the market.
However, the self-made core components require the investment of fixed cost and support workers and management personnel. This is a huge and long-term investment expense, but do not want to invest, want to steal the opportunity to take advantage of, the core components outsourcing, including the so-called "design, production in the outside" of the light asset operation, I think long-term is not desirable.
If you want to grow green in the basic industry of tractor industry, including long-term stability and stability in operation, you should do as stupid as a drag on Dongfang Hong and Changzhou Dongfeng.
The author gives you a sentence: the core parts are self-made, the initial investment is very large, but later is more and more relaxed, and the core components outsourcing, the early management is very easy, but a year is more difficult than one year.
2、 Have a stable and competitive dealer team
The customers of tractor manufacturers are agricultural machinery dealers rather than end users. The customers of dealers are end users. However, many manufacturers may not have this awareness. They think that dealers are product transfer stations, parasites attached to the production enterprises, like lice, can be strangled at any time.
However, the author believes that distributors are the core resources of production enterprises. In the market where supply is more than demand, many production enterprises are chasing a limited number of distributors. After the market sinks, the production enterprises are getting far away from the users. The production enterprises want to sell directly to users or control the end users. Therefore, it is more and more difficult for the manufacturing and distribution of manufacturers, The model of upstream and downstream cooperation should not be changed and cannot be changed at all.
Having a strong external Legion (dealer team) is the key to the invincible and invincible of the production enterprises. In the agricultural machinery industry, the author has been recommending the distributor operation mode of caterpillar company in the United States to the industry in recent years. From the following figure, compared with 1995, the number of distributors of caterpillar has hardly changed, Dealers in the US market are even falling, adding only emerging markets and new markets.
Caterpillar has long insisted on * * * * agency, which is basically a national general generation, and once it has passed on "Lianyan", it will not be abandoned for life. Caterpillar's dealers are mostly the inheritance of family undertakings of three and four generations.
Caterpillar agents in China have adopted the global agency system of caterpillar, with a small number, strong strength and close relationship. In the past 40 years, caterpillar has developed four agents in China, namely weste, Xinchang, Yichu Mingtong and lexstar. It is understood that they have many years of cooperation with caterpillar overseas, and then they work together to open up the Chinese market. The detailed analysis can refer to Caterpillar strong agency mechanism written by the author in 2017, and agricultural machinery enterprises can learn.
The domestic tractor enterprises are exactly the opposite of Carter. According to the information I have learned, * in recent years, large enterprises have been promoting "network planting and channel sinking". This strategy has no problem in itself. However, there are enterprises that are eager to make quick progress and gain benefits, and have no common difficulties with loyal dealers, but abandon dealers or arbitrarily adjust their territory, So the territory of these dealers has been in dynamic change. Dealers have no sense of security, let alone loyalty. The frequent changes of the policies of manufacturers even force dealers into speculators who have milk.
This certainly provides the opportunity for small brands or new brands. In turn, abandoned dealers or defected dealers help the growth of small brands. This is the reason why the concentration of domestic tractor industry is declining and the market share of large brands is constantly eroded.
As far as I know, most domestic agricultural machinery dealers are willing to act as John deer, jiubaotian, Yangma and other brands. They love and hate several domestic tractor brands. If they have conditions, they must give priority to foreign brands. Although foreign brands may not make money than national brands, foreign brands are stable.
Therefore, we should encourage the domestic tractor brand to take care of and respect the dealers, to join in and out with dealers, to cultivate rather than plunder dealers, to protect dealers from rain and not to graft to dealers. Only in this way can we cultivate a loyal dealer team, which is the foundation of a century basic industry.
3、 Master core technology or have the ability to integrate advanced technology
What is the core technology of tractor manufacturing enterprises? The author thinks that the core technology of agricultural machinery manufacturing enterprises can be divided into three levels: the bottom technology, the application technology and the integration technology.
Globally, John deer, Claas, Keith and New Holland, kubotian and other companies have the basic technology capabilities of tractor basic research, while AGCO, daez, Yituo and other companies have the ability of application development and integrated innovation. The R & D capability of the underlying technology is good, but the ability of application development and integration technology is also very important. As long as the three levels of technology are mastered, there are core technologies.
For domestic tractor brands, the ability of integration technology should be strengthened at present. That is, the enterprise should combine the components of different suppliers to make these parts achieve the * * best function state. On this basis, we have mastered the core parts technology such as gearbox, axle, manufacturer and elevator, and then realize the self-control of core parts.
For example, for power shift tractor, several domestic brands have had the impulse of self-made, but because of the poor basic ability, the technology and quality of domestic power shift gearbox have not been passed, and the products that are pushed to the market are not approved by users.
The expert's suggestion is that domestic manufacturers should first build their own ability to integrate technology, that is, first purchase the third-party components, assemble them first, digest and absorb technology in the manufacturing process, and then gradually realize self-control.
In the long run, the domestic tractor brand must be from assembly to production, from production to manufacturing, from manufacturing to creation, and must integrate technology first, then apply technology, *, then master * * bottom technology. Only enterprises with core technology can take a long-term.
4、 Outstanding price performance and fast iteration ability beyond competitors
Under the same quality, low price will certainly beat the high price, and the windfall will not last too long. Products with outstanding price performance in the long term will win.
In recent years, the quality level of domestic brands has been improved rapidly and the cost-effective advantages are obvious. The reason why John deer Ningbo factory quit the competition of wheel and tractor is that the tractor produced in Ningbo factory has high price but its performance and quality do not occupy the advantage. The whole body is in a downwind compared with the domestic ones. Therefore, the factory has to be closed. John's case shows that the brand can not eat when it comes to food, Cost performance is the key to competition.
On the other hand, the speed of new products and the ability of fast iteration of old products will also determine whether the enterprise can go for a long time.
The competitiveness of enterprises in the market is manifested in the advanced nature and cost-effective of products. The advanced nature of products must be constantly reflected in new products. New products are not only to let enterprises lead their competitors, but also to make enterprises have profits that exceed the average level of the industry.
New products determine the future of the enterprise. In domestic tractor industry, new products are more in the form of iteration. Iterative products are actually improved products, but for users, small changes are also new products. On the one hand, it makes users feel fresh, on the other hand, iteration makes enterprises have reason to improve the price.
Therefore, to maintain long-term competitiveness, we must constantly apply new technologies and constantly launch new products. If there is no new technology, at least we should quickly iterate over the old products.
5、 Strong capital strength
The real need for bigger and stronger enterprises is not enough. Wang said, "industry-oriented, strategic, innovative, financial tools".
When it comes to finance as an instrument, the Chinese ancients said that "if you want to do good, you must first use the tools". At present, most domestic tractor enterprises have only one but no tools. On the contrary, johndir, keshenholland, AGCO, Claas, jiubaotian, Yangma and daoiz, including tractor manufacturers such as Dongfang Hong and Zoomlion, have strong capital background, These brands are listed companies, one of which is A-share and H-share listed companies.
In key periods, such as the depression of the industry, major technological changes, key nodes of enterprise development, and industry shuffle, if there is no strong capital support, it can not be completed by the enterprise's own ability. If the key node can not achieve leaping development, the enterprise can only be a member of the ordinary people if it fails to achieve the "fish leaping Dragon Gate" opportunity.
To be a big and strong brand of domestic tractor, we must make up the short legs of capital. Therefore, we need to embrace capital actively and close to capital.
6、 Post market operation capability: benign interaction between new machine and two mobile phones
The post market management ability is a new topic for domestic tractor brands. Since the domestic tractor industry has just entered the post market, almost no enterprises have the experience of "swimming" in the later market, but the front and rear markets are integrated, the former market is the material basis of the post market, and the latter market will determine whether the former market can continue to develop.
For example, the influence of second-hand tractor on the sale of new machines.
In recent years, domestic users have been more inclined to purchase tractors of jiubaotian and johndier, followed by Dongfang red and Lovol. However, other brands are hesitant. Under the condition of fund permission, they will not choose the second and third line brands. Of course, brand, quality, performance and service are still the key factors for users to choose tractor brands, But another factor that has only appeared in recent years can not be ignored, which is the price of two mobile phones.
Now when the user purchases tractor, they will see the price of the second mobile phone and the good selling of the second mobile phone. If the second mobile phone is not good for sale and cannot sell well, they will choose other brands.
When the connotation and extension of the market is not only used agricultural machinery, but the post market is a more valuable field than the former market. Agricultural machinery enterprises need to have a conscious post operation market. This year, LoVo apos has established more than 20 two mobile phone trading centers and developed dozens of Lovol 2 mobile phone brokers, aiming to drive the sales of new machines by operating good second mobile phones.
In the future competition, there is no way out for the second mobile phone, no way out for new machines, and there is no way out in the market before the market after the bad operation.
7、 Comprehensive and diversified management capacity of multiple categories
To investigate well-known tractor manufacturers at home and abroad, such as John deer, kessnew Netherlands, AGCO, Claas, kubotian and other multinational companies mentioned above, as well as Dongfang red and lovoa Persia, etc. most of these enterprises are engaged in tractor manufacturing or mainly in tractor production, after the success of tractor business, Or after the agricultural machinery industry in the country and region has entered the stable or low-speed development period, these enterprises have chosen the road of diversified development of multiple categories without exception. The common feature is that the combination harvester, animal husbandry equipment, plant protection equipment or agricultural machinery and other categories are introduced, and the companies that insist on operating with single tractor business have either quit the industry, Or the tractor business is acquired by other big companies and integrated into a larger diversified company.
What is the logic behind this phenomenon? The author thinks that in the early stage of Agricultural Mechanization Development in a country, the main demand is the power products such as tractors. Only when developing tractors, plows, seeders, rotary tillers and other working tools can play a role. Therefore, the demand for tractors in the early stage of agricultural mechanization is very large, and the single enterprise can also achieve large-scale production and achieve scale effect.
After the early stage, after the popularization of agricultural mechanization, the number of power machines in the society is large, the demand for tractors has decreased sharply, tractor enterprises can not achieve the scale effect, the capacity is idle, the enterprise is low profit or loss. In order to make full use of the existing capacity, it is necessary to operate in concentric diversification or related multi-element way. Only in this way can the enterprise realize the scale effect.
The author thinks that the tractor enterprise diversified management is the general trend, whether willing to want to, must take the diversification road in a certain stage.