The 2021 China Construction machinery marketing & Post Market Conference officially kicked off on November 29. This conference gathered highly influential people in China's construction machinery industry, built a high-level communication platform, focused on "adhering to axiom", discussed many opportunities and challenges in the process of adhering to it, and contributed valuable and knowledgeable wonderful exchanges, in-depth collisions and solutions, Together with my colleagues, I will observe the current situation and look forward to the future.
With China's construction machinery market entering the stock market, post market service value creation has become the focus of attention. How can all parties in the industrial chain build a service value coordinate system and accelerate the reform of post market service mode of construction machinery? The summit forum of "building service value coordinate system" was held at the construction machinery marketing & Post Market Conference.
The summit dialogue was chaired by LV Hua, chairman of Guangzhou Juhe Construction Machinery Co., Ltd. the guests were Fei Chunjiang, head of the business department of Komatsu (China) Investment Co., Ltd. (online), Chang Yudong, deputy general manager and service director of the marketing company of Shandong Lingong Construction Machinery Co., Ltd., deputy general manager of the marketing company of Xuzhou XCMG Mining Machinery Co., Ltd Li Jinwu, general manager of spare parts company, Xi Jun, general manager of Sichuan Zhumao Construction Machinery Co., Ltd., and Yang Huijie, chairman of Hunan weilide Technology Co., Ltd.
2021 China Construction machinery marketing & Post Market Conference
Part III of "summit dialogue" service value building
In the third theme "service value building" of the summit dialogue, as representatives of main engine manufacturers, agents and technical service providers, several guests made a very targeted discussion and dialogue on key issues such as how to build service value and how to improve penetration and share in the post market from the perspective of industrial synergy.
LV Hua: when the incremental market gradually turns to the stock market, the traditional mainstream marketing channel, which focuses on the sales of complete machines, is facing greater and greater challenges. In the face of huge post market services, the participation and penetration of agents and manufacturers have been unsatisfactory. How can the main engine factory change this passive situation in the service coordinate system?
Fei Chunjiang: this year is the 100th anniversary of Komatsu's establishment. Most of Komatsu's agents in China also have more than 20 years of business experience. In these 20 years, Komatsu has always emphasized and trained educational agents to pay attention to the post market. Despite everyone's efforts, the overall post market absorption rate is not very high. One of the reasons is the decline of working hours. Komatsu kangcha system observed that from April to October 2021, the average operating hours of Komatsu equipment decreased by 16% year-on-year, resulting in the decline of after-sales revenue. We have 33 agency stores in China. The absorption rate of 33 agency stores is about 50%, and good agency stores also have an absorption rate of more than 70%.
The key to expanding after-sales business is to keep customers. As a main engine factory, what we do is to improve the value-added services for users. For example, the agent maintains and maintains his equipment in real time, and the warranty is extended to 10000 hours in five years. Such value-added services enable customers to use the equipment safely for a long time and accept the after-sales service of the agent for a long time.
Komatsu gives comprehensive support to agents to improve after-sales service, which is mainly reflected in the training of service talents. A relatively long-term service training jointly run by Komatsu and a domestic university takes half a year at a time. We have persisted since 2004. In addition, provide resources for the workshop construction of agents, especially provide standardized ideas for the environmental protection and safety of maintenance workshops in recent years. For the large-scale equipment of the agency store, improve some special tool resources. Then, the improvement and promotion of the competitiveness of parts price is also the core work of the main engine factory.
Chang Yudong: I met a real example in the aftermarket. An agent's customer had a big dig, the power broke down and the engine was deformed. Many maintenance factories quoted him, some 60000 and some 70000. My agent called the customer and quoted 30000. Other quotations were the price of new parts. After my agent took the equipment to the factory, the factory repaired it directly. It has created great value for users. If our services enter the post market in the next step, professionalism is very important. Through our professionalism, users can spend the lowest price, which is the value and significance of the existence of agents.
Li Jinwu: to change the current situation, first, pay attention to it consciously. It is neither the first time nor the first day to pay attention to the post market. We have been talking about it for a long time, which is determined by business results and business performance. When the whole machine market is good, the profits are relatively rich. From the decision-makers of the main engine factory to the agent bosses, we do not pay enough attention to the post market. Today, we must pay enough attention to the operation ability of the whole post market system.
Second, we need to learn from excellent brands, such as Komatsu and caterpillar. The post market requires a high degree of professionalism, which is not what we can do if we want to. We should have a top-level design, especially led by the host enterprise, and make a long-term plan from the top-level design, how to do services, accessories and overhaul, and adhere to it for a long time to form sustainable development A competitive system. In the process of promotion, especially when we do not have this ability, we certainly need to invest, both in policy and system construction.
Third, in terms of team building, if you want to operate the post market well, especially from the perspective of agents, you lack this kind of high-level business talents, and you want to have good service and technical ability, understand management and sales. Such a compound talent market is extremely scarce, and training is very important. I call on everyone to work together in this regard to maintain the market and make it healthier.
Xi Jun: in 2020, we will have about 5300 retained customers within ten years, and about 3000 have transactions with us. Last year, the gross profit of the whole service was about 26 million yuan, plus indirect internal settlement of nearly 30 million yuan. Through big data analysis, we found that the after-sales input of excavators less than 10 tons is greater than the output, so we decided to give up the sales of excavators less than 10 tons this year. The equipment that contributes the most to us is basically more than 30 tons. The excavator is mainly used for repair and maintenance within 6000 hours. The oil products and filter elements are relatively stable in the whole life cycle. The income of this part is less than 40%. I think it is an excellent agency. When it exceeds 70%, you are a three guarantee service provider. Another important data last year was that the sales of our hydraulic parts exceeded the sales amount of filter elements for the first time. All these achievements stem from Komatsu's nearly 10 systems supporting us, including the promotion of double 11.
Yang Huijie: now the crane industry has three characteristics: first, the service positioning is not clear, which is mainly reflected in all service providers. When it comes to post market and service, I have to do it in the whole life cycle. In business, machinery, electricity, hydraulics, control and structure are capable. How is it possible? Therefore, when this ambition does not match with ability, chaos will appear.
Second, the ability difference is obvious. It is mainly reflected in Backpackers, parts dealers, small repair shops, manufacturing enterprises, agents and some technical research institutes. There are obvious differences in the technical service ability of these institutions. When they encounter problems, they swarm, resulting in customers confused and don't know who to look for.
Third, in order to survive, unscrupulous people exist. The larger the stock market, the more such people. Small problems can be expanded and repaired, but they may not earn much money, so they can simply change. Artificially set different fault points and repair them repeatedly.
I don't think the post market is within the three guarantee period. The market positioning of the main engine factory determines that it can only stay in the after-sales service and general parts suppliers, and doesn't pay enough attention to the deep-seated demand for high-value and high-tech parts. Most parts companies' inventories are vulnerable parts. The technical personnel of manufacturing enterprises can't distinguish the model of the first, second and third generation products. The original product has become a new product after only minor changes, but what about the stock customers in our market? Whether we should pay more attention to the technical update of stock equipment.
It is difficult for small customers to survive by inclining market resources to large customers or alliance customers. We should still care about the survival of small customers.
LV Hua: how can we promote the channel system to increase its penetration and share in the post market from the perspective of Industrial Synergy, whether it is the main engine manufacturers, agents or technical service providers?
Fei Chunjiang: Komatsu has an evaluation system for agents, which is actually a guiding direction, in which the after-sales account for the largest proportion. Compared with the driving role of the main engine factory, the current market situation is actually a forced trend. Whether the agents can operate well in the next downward cycle, we guide the agents to make some structural reforms and reduce costs; On the other hand, it is to tap potential in the post market.
Chang Yudong: the aftermarket exists objectively. Since it is a market with products and profits, we used to mix the aftermarket with services. At present, the service is maintenance during the warranty period. The real aftermarket is now a stock market, which is very huge. For both loaders and excavators, there are at least three oil cylinders on each machine. Assuming that there are 5 million machines, multiply by 3 to 150 million oil cylinders. The annual probability of oil cylinder damage is about 10%, and 1.5 million oil cylinders need to be repaired in a year. Do our agents provide such value-added services to users? With less money, agents can earn this money, and customers can reduce costs. This is what should be considered in the post operation market. What should agents do and where to locate? How can we operate in the post operation market of more than 9 million machines? This is very critical. This is directly proportional to participation and penetration.
LV Hua: the application of advanced technical means such as 5g, Internet of things, artificial intelligence and big data has made the communication between users and enterprises full-time, and the online and data services have been applied. For these new applications, how can you predict the future customer service and what new challenges will you face? How to deal with it?
Li Jinwu: these new technologies will indeed bring great changes to the post market industry of construction machinery. First, from the perspective of service business operation, it is basically all online. Customers clearly know where the service engineers and service accessories are. Customers understand our whole process. It is a traceable and information-based process, and the operation efficiency will be very high.
The second is the impact on service management in two aspects: first, a large number of post market service costs are on the road. How can we achieve de roadization? Information technology, AR, VR and other technologies, including promoting automated services in maintenance, remote support in maintenance, and many ways to save costs and improve efficiency. Second, a large amount of data has been formed in the whole service process, which can play a great role in equipment, customer portrait and service order distribution through big data.
Third, the business expanded from the operation or marketing level, e-commerce and other information platforms, no matter what kind of business, will have a great impact on the future service format.
LV Hua: time has come to an end. First of all, let's thank our five guests who participated in the high-end dialogue with applause. In the above dialogue, for the coordinate system of service value, we should first upgrade our cognition, pay attention to strategy, complete the mechanism, coordinate the whole industrial chain, integrate resources and build capacity.
