China Construction Machinery Brand Network: From the acceleration of Sany internationalization to see the rise of China's construction machinery

Source: China Construction Machinery Brand Network Author: Xiaocheng
 
According to a new annual YellowTable Ranking by Construction International*, the world's *565,550 construction machinery manufacturers generated sales of $182 billion in 2011. Among the top 50 companies, the total sales of Chinese companies increased from 15.0% in 2010 to 16.9%. In 2003, the YellowTable leaderboard was first published. At that time, Chinese manufacturers accounted for only 1.6% of the world's top 50 sales, totaling $841 million. Over the past 10 years, the share of sales by Chinese companies has increased by at least 10 times as a percentage. Today, they account for more than 16 percent of the total, or $30.6 billion. These Chinese construction machinery enterprises led by Sany, Zoomlion and XCMG are playing an increasingly important role in the international arena. The most impressive thing is that Sany shines on the international stage. Of course, the performance of XCMG Group, Zoomlion, Liugong Group, etc. is also quite good, here I take Sany as an example to talk about some experiences.

　The international stage shows the brand and strength

In China's construction machinery industry, it can show the strength of the company's brand in Munich, Germany, Intermat in Paris, France and CONEXPO in Las Vegas, USA. In this regard, Sany can be described as a big deal, from the booth area and the location of the booth, it is basically one of the few companies with a better area * 5655. More than ten years ago, these exhibitions did not even have a Chinese flag (each country will only have its flag in the exhibition hall as long as there are enterprises participating in the exhibition), let alone the size of the area and the quality of the location. In the first few exhibitions, the exhibition positions of Chinese companies were arranged in the most remote places without exception, even if you have money, people will not give you a good position. That was the status quo at the time. Looking at this year's INTERMAT exhibition, last year's CONEXPO exhibition, and the bauma exhibition the year before last, Sany has well demonstrated the strength of the Chinese army. At this year's INTERAMT exhibition in Paris, Sany Group continued its previous atmospheric efforts and won the E5 area located near the parking lot, adjacent to JCB, Terex, etc., but its exhibition area reached 4680 square meters, which is China's *5655 exhibitors. Seven or eight years ago, when they first participated in international exhibitions, most of the Chinese companies participating in the exhibition did not meet European and American standards, and could not win the recognition of international customers. In the first two years of Sany Group's "going out" exhibition, because it did not meet European and American standards, the products only went to the United States for "travel" once and then shipped back to China, and failed to achieve sales.
Time is very fast, with the batch of Chinese construction machinery enterprises have landed in Europe and the United States, the major brands from the beginning of the stage, a small test, and then to the same stage, competing for beauty, nearly ten years have passed in a flash. In less than ten years, several giants of China's construction machinery have completed an epic transformation, and Sany Group has developed from a sales scale of less than 5 billion yuan to an aircraft carrier of 100 billion yuan today.

The development is too fast, and the time left for foreigners to understand is too short

In the last few international exhibitions, I was impressed by a few foreigners who held exhibition materials in their hands and asked "where is SANY?" From the words, it can be seen that in their minds, Sany is the boss of China's construction machinery industry (in fact, Sany was still quite far from the boss at that time), which shows that Sany has done a good job in international promotion. It is precisely because of this that it has the international influence it has today. Another time I was invited to attend a meeting held by an internationally renowned parts supplier during the exhibition, and many foreigners asked me almost the same question: "Chinese enterprises have become the focus of discussion at this exhibition, what do you think of Sany?" Of course, the companies they want to know about are not only Sany, but also Zoomlion, XCMG, etc. These few years have gone from obscurity to blockbuster success, leaving them with too little time to truly understand Chinese companies. For example, since its establishment in November 1994, Sany Heavy Industry has started from scratch and has achieved China's *5656 (according to the ranking of "International Construction") and the world's sixth largest construction machinery manufacturer (the top five are Caterpillar, Komatsu, Hitachi, Volvo, and Liebherr) in only 16 years. It is reported that the sales revenue of Sany Heavy Industry has moved forward with a growth rate of more than 50%: in the past 10 years (2000-2010), the sales revenue of Sany Heavy Industry has jumped from 390 million yuan in 2000 before listing to 33.955 billion yuan in 2010, with a compound annual growth rate of 56.2%. Because China's construction machinery enterprises have completed the development process of foreign enterprises for decades in a short period of time.
* Recently, in a communication with executives in the German manufacturing industry. He said frankly that the German manufacturing industry, which has always been proud, is worried or deeply pressured, and that Chinese companies have only been trying to surpass it from the beginning.

Acquisitions are frequent, all over the world

Sany acquired German elephant (Putzmeister), Zoomlion acquired Italian CIFA, XCMG acquired Shi Weiying, and Liugong acquired Poland's HSW. These news are already familiar, and the industry and the entire Chinese manufacturing industry have different views on it. But one thing is certain, these acquisition cases will provide very valuable experience for the international development of China's construction machinery industry. It will become one of the most important stages of development for the global development of China's construction machinery enterprises.
Taking Sany M&A as an example, in addition to looking at the technology, products, marketing and service systems of Elephant, the author believes that another important point is to reduce an important competitor. If it wasn't Sany but Carter or Komatsu who acquired the elephant, what would be the result? Just like Carter's acquisition of mining giant Race Loes, one of its mining divisions had $20 billion in sales. And who can really compete with Carter in this field? This is also the motivation for Sany's "flash marriage" with elephants.

　Picking the crown pearl earns the respect of the industry

Sany's contribution to China's construction machinery industry is not onlyConcrete machinery, * It is worth mentioning that there is also the excavator industry. Excavator is a construction machinery industry in the technical content of 5661, profit is considerable, competition is fierce products. Count the top 50 construction machinery enterprises, the vast majority of enterprises have excavator products. The top dozen companies all have excavator products, and most of them are focused on products. After 1994, including Daewoo (now Doosan), Carter, Komatsu, Hitachi, Kobelco and other excavator giants entered China in the form of joint ventures or sole proprietorships, China's original excavator companies fell one after another, almost wiped out. At that time, the excavator industry was very confused: why are the core components I use imported and different after assembly? Why is it that I can produce an excavator or a small batch of excavators to ensure quality, but once the batch is completed, it will not work? This is not surprising, as is the case with China's automotive industry. The excavator industry is an industry with a high threshold of technology, capital and talents. Doing a good job of excavator is a big system engineering, even if it is a small link error, it will also affect the quality of the excavator. After the collapse of the original excavator enterprises or the joint venture was gradually eroded by foreign capital, the Chinese enterprises that started to make excavators as early as possible include Liugong, Sany, Xu Dig, Yuchai, etc. Nowadays, China's excavator industry has made great progress. Among them, Sany excavator surpassed Japan's Komatsu in sales in 2011 and obtained *5656. From January to June this year, major excavator manufacturers in China sold a total of 70,758 excavators, a sharp decline year-on-year. Compared with other companies in the industry, Sany Heavy Machinery's market share continues to increase, and the current relative market share has increased from 16% in the first quarter to 18%, continuing to lead the domestic market. This would have been unthinkable ten years ago!
Although, there have been some controversies in the development process, Sany excavator did answer all the questions and criticisms with practical actions. *Importantly, Sany excavators have achieved sales of 5,656 while maintaining prices that are basically higher than those of Korean products. For latecomers, it is rare to surpass foreign brands in a short period of time in terms of sales price and sales.
In the process of developing excavators, Sany has encountered many difficulties and thought about giving up, but has persevered. The excavator industry is the crown pearl of the construction machinery industry, and if you want to pick it off, you must have enough courage, charm, strength and patience. Liang Linhe, former chairman of Sany Heavy Machinery, said that Sany has won China's *5656, and the next target is the world's *5656. Regardless of the outcome, we bless Trinity. Bless China's construction machinery enterprises!