2021 Agricultural Machinery Market: Six Characteristics Performance

Release Date:2021-12-22 enlarge

  The footsteps of the years are always in people's unconscious and uneventful days gradually moving away, never look back, inadvertently, 2021's journey is nearing the end. Still remember, at the beginning of the year, the full-blooded expectations and optimistic predictions for the market to improve, has now become a mixed reality.

    The market is fast-changing. Not to mention the subjective will of people for the transfer. Looking at the agricultural machinery market in 2021, both the industry's technological breakthroughs, shortcomings to fill the innovation, there is also demand for saturated products, the elimination of outdated technology, but also the continuation of the collision between traditional and emerging categories, the inherent laws of market operation and uncertainty intertwined, the interpretation of the irreproducible wonderful and lost.

   

  01 Industrial Maturity Dimension Upgrade, Stable Speed to Good Trend Unchanged

    In recent years, the agricultural machinery industry continues to stabilize, slow speed, high quality market operation trend. If the year 2018 is called a low point of the industry development in recent years, I believe no one objected. The year, the national enterprises above the size of the industry's main business income increased by a negligible. Profit is a decline of 15.76% negative growth. The next two years--2019 and 2020, although the operating trend turned better, the increase is still limited. More thanks to the epidemic during the state to give a policy boost and pull. This year, of course, a lot of good factors, but at the same time, the impact of the epidemic continues, the signs of industrial adjustment and transformation is becoming more and more obvious, especially this year is the national agricultural machinery purchase subsidy policy alternate year, the new three-year subsidy operation work started late, coupled with a significant increase in the price of raw materials, the second half of the electricity restrictions, last year's subsidy sales overdraft and other factors, the annual operation of the agricultural machinery market can be described as ups and downs. As soon as the spring, the agricultural machinery market started strongly, sales increased significantly, but in May and June, the market fell into underestimation, and then the market has not appeared "hot" situation, "first up and then down" has basically become the tone of this year's agricultural machinery market operation. Overall, after experiencing a significant increase in the main business income of large-scale enterprises in 2020, the overall total profit growth of 30% of the dazzling results, the agricultural machinery market this year is still in a stable operation, the agricultural machinery industry is still in the industrial adjustment interval, the industry characteristics are reflected in the following three points, one is, the industry continues to focus on the development of scale to high-quality development; second, the main force of the industry from the surplus traditional market to the niche just demand market Shift, the market pattern further tends to balance; Third, the industry shortcomings and deficiencies continue to make up, the whole process, the degree of comprehensive mechanization continues to improve.

    From the basic operation can be predicted, the annual industry enterprise main business income or a slight increase, the increase is limited and can also be predicted. The degree of mechanization of field crops again, livestock crops, cash crops, agricultural processing, hilly mountains and other mechanization to further complement the degree of agricultural mechanization to reach a new level of development, reduce the amount of quality is still the main tone of development.

   

  02 Profits Further Decline, the Competition Continues to Intensify

    This year, the biggest threat and variables facing the agricultural machinery manufacturing industry when the price of raw materials rose sharply, which invariably increased the pressure on the production of enterprises, compressing the profit margin and intensifying the market competition. Especially in the second half of this year, the price of raw materials again and again, under the situation of growth, many agricultural machinery enterprises had to raise the sales price of the whole machine, but many of the whole enterprise price increase is still difficult to offset the increase in costs caused by the price of raw materials, enterprises in the high cost pressure, the sales season before the arrival of the stock has been repeatedly compressed, some of the weaker ability to bear the small enterprises, in the cost of rising lost Some small enterprises with weak capacity to bear the rising costs have lost their competitive price advantage, and have chosen to stop production and wait and see in a short period of time. At the same time, the strength of the enterprise has opened the "enclosure" mode, to seize market share. It is not difficult to conclude that this year, the scale of the agricultural machinery industry is growing steadily, but the profit level will certainly be slippery, the reshuffling of corporate brands to further accelerate the risk of elimination of a number of small enterprises of general strength. In the implementation of the national subsidy policy, the degree of standardization more and more strict, Heilongjiang agricultural subsidies special rectification, horsepower false high treatment, etc., does not explain the state in the work of agricultural subsidies "zero tolerance".

    At present and even in the future, the industry policy regulation tends to be more strict, standardized, no competitive advantage of the industry chain will be significantly narrowed, the concentration of the head of the agricultural machinery brand has increased significantly, the survival of the miscellaneous army, mixed army, not into the brand enterprise will be more and more difficult, the user brand awareness will be further enhanced, the rule of survival of the fittest remains unchanged, the industry reshuffle continues, the demise, disappear more and more normalized.

   

  03 Product demand for both ends of the extension, the market shows A "K" Curve

    The first dimension is the type of product demand, large-scale and miniaturization demand is strong, the two ends of the development trend is obvious; the second dimension is the development performance of enterprises, the benefits of good is particularly good, the benefits of poor is particularly poor, that is "good, better; poor, worse". Enough to see that the degree of segmentation of the agricultural machinery market deepening, the development of both ends of the market tends to continue, on the one hand, in the domestic land transfer policy to promote, the promotion of conservation tillage model, agricultural (agricultural machinery) cooperative organizations and the rise of family farms and other factors boosted by the demand for agricultural farming model to match the trend of large-scale agricultural machinery products year by year, on the basis of this, based on the investment demand, the pursuit of operational efficiency of users become On the other hand, China's mountainous areas (including hills and plateaus) cover an area of about 6,636,000 square kilometers, accounting for 69.1% of the total land area, with a wide variety of crops and scattered distribution of plots, limited by the terrain, many hills and mountainous areas are still stuck in the manual operation-based farming mode, in recent years, "through subsidies In recent years, "through subsidies to promote hilly, mountainous areas mechanization progress" as the national key support policy vigorously promote, also decided to hilly, mountainous areas for the operation of small machinery sales rose sharply. Since this year, along with the further increase in brand concentration of competition in the agricultural machinery market, good products, good brands more and more favored by users, such as Grain God wheeled combine harvester, Dongfang Red tractor, DJI UAV, etc., are increasingly becoming the benchmark products in the minds of users, at the same time, many of the lack of reliability, rough workmanship, not high visibility of agricultural machinery brands are abandoned by the market and users, or even gradually disappear! In the severe flood of market competition.

    It can be seen that the operation rules and characteristics of the agricultural machinery market, is closely related to product performance, user demand, no enterprise can not go to the study of products and demand and mixed prosperity, 2021, the market demand for large-scale intelligent products and miniaturization of special needs products tend to be obvious, the corporate brand effect more and more manifest the extraordinary influence.

   

  04 Hot Spots are Still Concentrated, the Alternation of Traditional And Emerging Continues

  In 2021, the hot spots in the agricultural machinery market is still concentrated, only the traditional categories of crawler grain combine harvester,, etc. appeared in varying degrees of growth, most traditional products have declined significantly. In contrast, the vast majority of emerging niche categories show a good momentum of growth, such as animal husbandry machinery, green feed harvesters, feeding machinery, etc.; then cash crop machinery, peanut harvesting machinery, potato machinery, sugar cane harvesters, cotton pickers, etc.; then there are plant protection drones, facility agriculture equipment, drip irrigation equipment, etc.. Needless to say, since 2015, the domestic agricultural machinery industry into the transformation and upgrading stage, the proportion of the industrial structure continues to shift and adjust, both in terms of product large-scale, but also in the rapid emergence of new niche products, excess low-end products market continues to fall and emerging products market rapid rise alternately, therefore, it is not difficult to find that in recent years, where the niche products engaged in agricultural machinery enterprises have achieved Better business performance. From the point of view of the cyclical law of development, the adjustment and upgrading of the agricultural machinery industry is not an overnight thing, but a specific stage of the process, whether it is the traditional agricultural machinery categories of technological progress, product upgrades, or niche agricultural machinery categories of continuous improvement, volume growth and a series of links, need to experience a certain amount of time to accumulate. In other words, the domestic agricultural machinery market into the low-speed development has become the norm, the road of industrial adjustment is still continuing.

    No matter how the market changes, the user demand is always the starting point of all business activities, all enterprises must do sufficient market research, today's agricultural machinery market is already a "buyer's market", the user has enough "right to speak", this change in supply and demand in this year's This change in supply and demand in this year's agricultural machinery market has been clearly presented, the so-called "hot products", "hot market" is the product of strong user demand.

   

  05 More Marketing Tools to Build A New Form of Industry

    Like all industries, the agricultural machinery industry is also undergoing disruptive changes due to the popularity of the Internet, whether it is the business management model, or business model, are constantly changing to show a new form, with the network communication, all information has become unlimited access to the traditional marketing model and the combination of the Internet, to the agricultural machinery business value chain links with unprecedented convenience and transparency. This year, the digital characteristics of the industry is becoming more and more obvious, the absolute proportion of agricultural machinery enterprises do not simply rely on stores to sell, but to take the "online + offline" way synchronized, online store operation, online live with goods, equipment failure remote diagnosis, these means are common; online service, online product experience, online operation reservation, etc., everywhere. Online service, online product experience, online operation reservation, etc., can be seen everywhere. More and more agricultural machinery enterprises from the initial single "product manufacturing + distribution channels physical operation" to "product manufacturing + distribution channels physical operation + online platform", and then to "the whole and comprehensive mechanization overall solution provider ", the business model changes from a single "selling products and services" to "providing solutions", from a single entity business to "Internet + modern agricultural machinery "combined with the industrial ecosystem, revealing a richer business connotation.

    The characteristics of the times in the agricultural machinery industry is also inseparable from technological progress and the upgrading of people's mindset. In 2021, agricultural machinery enterprises have poured a lot of effort into innovation in marketing methods and brand power building, and the degree of synergy between the physical enterprises of agricultural machinery and Internet enterprises has become closer.

  

  06 Uncertainties Increase, A Spot Is Not Enough to See the Panther

    For the agricultural machinery industry, 2021 is indeed called a year of uncertainties, not to mention the old and new purchase subsidies policy alternating factors, the raw material price, the second half of the large area of power restrictions and production restrictions, the epidemic continues, most of the country's operating season floods and other sudden factors, from different dimensions to the agricultural machinery industry to bring enough to shake the development of the strike force. In terms of the general trend, the national subsidy policy is still strongly driven, food prices are stable, the maturity of agricultural machinery products has been further improved, technological innovation has made great strides forward, and in the case of the global epidemic spreading and overseas business being restricted, the domestic grand cycle strategy with "digging deeper into the consumer potential" as the main focus is deeply promoted, and the quality of the industry is growing, short boards are being filled, core technology is breaking through, and the industry is growing. Complementary, core technology breakthroughs, high-end product localization have made significant achievements, mechanization blank supply field is gradually reduced.

    Therefore, we must comprehensively analyze the development environment faced by the agricultural machinery industry, with a dialectical perspective to observe the changes in industrial development, on the one hand, we can never stick to the rules, take the inherent mode of thinking to analyze and view the future development; on the other hand, we can not deny the past accumulated results of experience, to use a broader perspective to observe the development of the industry, develop strategies to keep pace with the times.

    For everyone in the agricultural equipment industry, we all hope to have a year of leap forward, a year of progress. Seriously summarize the past, in order to learn lessons, save enough strength, stride forward, towards a better tomorrow, we all firmly believe that the agricultural machinery market in 2022 is bound to be more exciting!