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[ China Agricultural Machinery Industry News ] Since 2004, with the continuous promotion of the state subsidy policy, China's agricultural mechanization has entered the rapid development track of the “Golden Decadeâ€, and the volume of agricultural machinery has grown by spurt, and all agricultural machinery manufacturers have mushroomed. Birth, the overall industry from the original powers to fight for hegemony, into a hundred schools of contention, competition is becoming increasingly hot. According to incomplete statistics, there are currently more than 30 formal agricultural machinery manufacturers in Weifang.
In recent years, the overall demand of the agricultural machinery market has continued to decline, the industry has entered a staged deep adjustment, the peak season has become weaker, the demand has weakened, and the intensification of competition has become an obvious feature of the current agricultural machinery industry; especially since 2017, the entire agricultural machinery industry has been sorrowful, in the first half of the year. The sales of the four major agricultural machinery products of tractors, wheat machines, corn machines and rice machines suffered from “waistâ€.
In August, it has entered the traditional sales season of the agricultural machinery market in the second half of the year. As far as the current situation is concerned, the form is still not optimistic. Even the Leiwo, which represents the benchmark of Weifang agricultural machinery production enterprises, is no exception. It is said that the comprehensive output of each product line in July is only More than 2,000 units are still less than half of the previous year. The company is also continuing to carry out large-scale layoffs optimization; the remaining small and medium-sized agricultural machinery enterprises in Weifang are mostly in a state of suspension of production and semi-discontinuation.
In the hot days, the agricultural machinery industry seems to be in the cold winter, and “live†has become an important task for enterprises to operate in the next year or two.
Where should we go from the Weifang agricultural machinery enterprises at the crossroads ?
How can Weifang agricultural machinery enterprises transform to achieve sustainable profitability?
First, strengthen cash flow control
The capital chain is the lifeblood of enterprise production. If the profit is equivalent to the blood of the enterprise, then the cash flow is equivalent to the air of the enterprise. There are many examples of enterprises suffering from difficulties due to problems with cash flow control. For example, Shandong Changlin and Ninglian Machinery in the industry are bankrupt because of the capital chain break. Therefore, no matter how large the company is and how high the output value is, There are many brands, and problems with cash flow management will be lost.
At present, the market of major agricultural machinery products is highly saturated, and the purchase of users has returned to rationality. In addition, due to the objective factors such as the partial over-expansion of the market share, the continued decline in the price of food, and the decline in the purchasing power of users, the 16-year “National Second National 3†has overdrawn the “foam†of the agricultural machinery industry. "Retreat, overcapacity problems are highlighted, the inventory rate of various manufacturers continues to rise, squeezing a large amount of funds, resulting in business difficulties.
In order to occupy market share, some enterprises have adopted unconventional marketing methods such as low-cost dumping, free distribution, and credit sales in the early stage. At this stage, capital recovery is difficult and operational risks are extremely high. Therefore, a high-level financial management team is formed. Establishing a sound early warning and recovery mechanism for accounts receivable is a core issue that every agricultural machinery enterprise needs to focus on.
Second, product excellence
Product is the foundation and foundation of any agricultural machinery enterprise, and it is also the core competitiveness of the company's long-term development. Driven by national policy support and market rigid demand for more than ten years, the agricultural machinery enterprises have entered into, homogeneous imitation, over-marketing, research and development, and insufficient investment in design, which has resulted in the current situation of agricultural machinery industry with insufficient production capacity and low-end overcapacity.
The homogenization of products is particularly prominent in the agricultural machinery enterprises in Weifang. Most of the core components such as engine, gearbox and drive axle are supplied by the same manufacturer. Many companies often neglect their own technology research and development, and only play a role of “machine assemblyâ€, lacking product selling points and core competitiveness. Lack of resilience in a depressed market environment, it is easy to be "shuffled" out of the industry.
Therefore, the more the industry is in a downturn, the more it can not simply reduce the quality of products for the pursuit of profit, compression costs, but should continuously improve the overall performance and quality of products from technology research and development, quality control, product upgrades, etc., to provide users with more timely, Attentive and perfect service, with reliable products to gain market recognition, establish a good brand image, in order to be in an invincible position in the harsh market environment.
Third, diversified management and differentiated competition
At present, the demand for traditional agricultural machinery tends to be saturated, but emerging agricultural products such as silage, returning, baling, drying and self-propelled, drone-type sprayers are still selling well, and as food crop prices continue Lower wages, increased economic crops and high value-added crops will inevitably drive demand for related agricultural machinery products.
A strong agricultural machinery enterprise should predict and analyze market changes, advance its competitors ahead of schedule, and introduce new products faster, instead of sticking to the traditional tractor and harvester business; expanding product production categories according to market demand, and achieving product diversification, Enhance the company's ability to resist risks, and form a mechanized "one-stop" combination sales model.
At present, domestically produced agricultural machinery products are highly homogenized, and it is becoming more and more difficult to implement low-cost strategies. Today, the segmentation strategy is becoming less effective. All competitions of agricultural machinery enterprises will eventually be reflected in competition characterized by differentiation.
Core technology innovation, independent brand promotion, emerging product innovation, regional user preferences and segmentation, service innovation and upgrades are all important means to achieve differentiated competition and establish exclusive core competitiveness of enterprises. It is also the focus of many agricultural machinery enterprises in Weifang. The topic of research.
Fourth, the internationalization route and the new platform leverage
The world is getting smaller and smaller, and the market is getting bigger and bigger. For small and medium-sized agricultural machinery enterprises, the door to the international market is also open. It is undeniable that the overall level of China's agricultural machinery still has a large gap compared with the developed countries in Europe and America, but it has certain cost performance and competitiveness in developing countries such as Asia and Africa and some markets in North America. Under the environment of high saturation of domestic agricultural machinery market, overcapacity in middle and low-end, and increasingly fierce competition, on the basis of excellent product quality, business operators must have an international vision and actively seek export sales channels to expand the international market.
On the other hand, "Internet +" is also constantly infiltrating into the traditional agricultural machinery industry. The competition in the traditional agricultural machinery industry is the terminal agent and the direct sales store. Because there is a traffic flow there, there will be business in some places. In the Internet era, a large number of customers and information enter the online line. If the enterprise does not “touch the network†", will lose the basis of production - passenger flow.
Entering the self-media era, the number of network users is increasing. Traditional agricultural machinery enterprises can leverage the agricultural machinery malls, agricultural machinery forums, agricultural machinery information networks and other agricultural machinery network platforms such as “ agricultural machine people to talk about things †to promote brand and products. More customer resources to achieve new profit point development.
Conclusion: In the face of the current complex competitive environment, Weifang agricultural machinery enterprises should work hard to improve their own strength, constantly adjust and optimize the business model, in order to survive the market cold wave, not to be shuffled by the industry.